On June 21, 2022 the President signed into law the Bankruptcy Threshold Adjustment and Corrections Act . Among other things the Act increased the Chapter 13 debt threshold to $2.75 million.
Both secured and unsecured debt counts towards this single limit. Previously there were separate limits applied to secured and unsecured debt.
While there are several kinds of bankruptcy, most people file either a Chapter 7 or a Chapter 13 bankruptcy. Chapter 13 is often used for individuals with regular income that have a large amount of equity in a home or a car and wish to keep those assets.
In a NJ Chapter 13 Bankruptcy the court must approve a 3-to-5-year payment plan which generally provides for curing any pre-petition delinquency, maintaining payments on secured debt, and a payment to unsecured creditors based on the debtor’s disposable income. Debtors will receive a discharge at the end of the Chapter 13 Plan.
Alternatives to NJ Chapter 13 Bankruptcy
If you exceed the Chapter 13 Bankruptcy debt limits, there are still other bankruptcy options. You may consider filing a Chapter 11 bankruptcy to obtain many of the benefits of Chapter 13 bankruptcy.
Consult With an Experienced NJ Bankruptcy Attorney
The experienced NJ Bankruptcy Attorneys at Levitt & Slafkes understand how stressful it is to face overwhelming debt. With over thirty years of experience, we know the law and take pride in getting things right the first time. Let us help you get debt relief and a fresh start.
We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.