For cases commenced after June 21, 2024, Reduced Debt Limits for Cases Filed Under Subchapter V of Chapter 11 and Chapter 13

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In 2022, the Bankruptcy Threshold Adjustment and Technical Corrections Act temporarily reinstated increased debt limits to qualify as a debtor in a case filed under Subchapter V of Chapter 11, and under Chapter 13.  These debt limit increases expired on June 21, 2024.

Effective for cases filed on or after June 22, 2024, the Subchapter V debt limit is reduced from $7,500,000 to $3,024,725.

The Chapter 13 eligibility threshold of $2,750,000 for both secured and unsecured debt will again be divided into separate limitations for unsecured and secured debts. Effective for cases filed on or after June 22, 2024, the maximum unsecured debt is an amount less than $465,275. The maximum secured debt is an amount less than $1,395,875.