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How Much Debt Do You Have to Have to File Chapter 13 Bankruptcy?
Understanding Chapter 13 Bankruptcy Debt Requirements How much debt do you have to have to file Chapter 13 bankruptcy? You
January 29, 2026
How Much Debt Do You Have to Have to File Chapter 13 Bankruptcy?
Understanding Chapter 13 Bankruptcy Debt Requirements
How much debt do you have to have to file Chapter 13 bankruptcy? You must have unsecured debts under $465,275 and secured debts under $1,395,875 as of April 2025. These debt limit adjustments occur every three years based on consumer price index changes, ensuring accessibility for wage earners seeking debt relief.
How much debt do you have to have to file Chapter 13 bankruptcy depends on both minimum practical considerations and maximum legal limits. Unlike Chapter 7 bankruptcy, which focuses on liquidation, Chapter 13 requires sufficient regular income to fund a repayment plan over three to five years. While no statutory minimum exists, you need enough debt to justify the time and expense of bankruptcy proceedings. The U.S. Bankruptcy Code establishes clear maximum debt thresholds that determine eligibility, protecting this relief option for individual wage earners rather than large business entities.
Chapter 13 Debt Limits Explained
Unsecured Debt Threshold
Unsecured debts include credit card balances, medical bills, personal loans, and most utility arrears. For Chapter 13 eligibility, your total unsecured debt must remain below $465,275. This category represents debts without collateral backing—creditors cannot seize specific property if you default. When calculating your unsecured debt total, include all outstanding balances at the time of filing, even if you’re current on payments.
Secured Debt Threshold
Secured debts attach to specific assets like your home, vehicle, or other financed property. The Chapter 13 secured debt limit stands at $1,395,875. Mortgage balances, car loans, and equipment financing fall into this category. These thresholds matter because exceeding them requires filing Chapter 11 bankruptcy instead, which involves more complex procedures and higher costs. Bankruptcy court data indicates that many consumer filers fall within Chapter 13 debt limits, depending on individual financial circumstances.
Combined Debt Considerations
You can carry both secured and unsecured debt simultaneously within their respective limits. For example, someone with $400,000 in mortgage debt and $50,000 in credit card balances remains eligible for Chapter 13 debt relief. The limits function independently—exceeding one category while staying under the other still disqualifies you from Chapter 13 filing.
Minimum Practical Debt Considerations
While Chapter 13 establishes maximum debt limits, no legal minimum exists. However, practical considerations affect whether filing makes financial sense. Court filing fees, attorney costs, and trustee fees typically total $3,500 to $5,000. If your total debt sits below $10,000, alternative debt relief solutions like debt consolidation or credit counseling might provide more cost-effective paths toward financial stability.
Chapter 13 works best for individuals facing specific challenges: preventing home foreclosure, catching up on secured debt payments, or managing substantial unsecured debt while protecting assets. The repayment plan requirement means you need regular income sufficient to cover living expenses plus plan payments. Most bankruptcy attorneys recommend Chapter 13 when debt exceeds $15,000 and you possess stable employment income.
Income Requirements Beyond Debt Limits
Chapter 13 eligibility extends beyond how much debt you have to have to file Chapter 13 bankruptcy. You must demonstrate regular income sufficient to fund monthly plan payments while covering reasonable living expenses. This income can come from wages, self-employment, Social Security, pension benefits, or other consistent sources. The bankruptcy trustee reviews your income documentation, expenses, and proposed payment plan for feasibility.
Your disposable income—what remains after necessary living expenses—determines plan payment amounts. Higher earners typically pay more toward unsecured debts over the repayment period. The means test, also used in Chapter 7 cases, helps calculate appropriate payment levels based on median income standards for your household size and state.
Final Debt Assessment: Understanding Your Chapter 13 Options
Understanding how much debt you have to have to file Chapter 13 bankruptcy empowers informed decisions about financial recovery. The debt limit framework—$465,275 unsecured and $1,395,875 secured—accommodates most consumer situations while maintaining the program’s intended scope. These thresholds adjust periodically, reflecting economic changes and ensuring continued access to debt relief for working individuals facing financial hardship.
Chapter 13 bankruptcy offers debt management features that may help address foreclosure proceedings, vehicle repossession concerns, and allow multiple debts to be addressed through a court-approved repayment plan. Unlike Chapter 7, you retain assets while reorganizing financial obligations under court protection.
Free Chapter 13 Evaluation Available
Don’t let uncertainty about debt limits delay your understanding of available bankruptcy options. Whether you’re facing foreclosure, overwhelming credit card debt, or mounting medical bills, understanding your Chapter 13 eligibility starts with professional evaluation. An evaluation can help clarify your debt totals and whether Chapter 13 may be an appropriate option.
Bankruptcy attorneys can review your specific financial situation, calculate exact debt totals, and determine the best relief strategy. For legal professionals, join our network to connect with clients seeking debt relief. Marketing partners can access leads from individuals seeking information about debt relief options.
Frequently Asked Questions
1. What happens if my debt exceeds Chapter 13 limits?
If your unsecured or secured debt exceeds Chapter 13 thresholds, you’ll need to file Chapter 11 bankruptcy instead, which accommodates unlimited debt but involves more complex procedures and higher costs.
2. Can I file Chapter 13 with very little debt?
Yes, no minimum debt requirement exists for Chapter 13, though filing typically makes financial sense when debt exceeds $10,000 to justify bankruptcy costs and the multi-year repayment commitment.
3. Do debt limits include interest and fees?
Yes, Chapter 13 debt limits include principal balances plus accrued interest, late fees, and other charges outstanding at your filing date—calculate your complete debt picture for accurate eligibility assessment.
4. How often do Chapter 13 debt limits change?
Debt limits adjust every three years based on Consumer Price Index changes, with the most recent adjustment occurring in April 2025—always verify current thresholds before filing bankruptcy.
5. Does business debt count toward Chapter 13 limits?
Business debts count toward your debt limits only if personally guaranteed or sole proprietorship obligations—purely corporate debts don’t affect individual Chapter 13 bankruptcy eligibility calculations.
Key Takeaways
- Chapter 13 requires unsecured debt under $465,275 and secured debt under $1,395,875 for eligibility.
- No minimum debt exists, but filing typically makes sense above $10,000 due to bankruptcy costs.
- Regular income sufficient for repayment plan payments remains essential beyond debt limit requirements.
- Debt limits adjust every three years based on economic factors affecting consumer debt levels.
- Exceeding either debt threshold requires Chapter 11 filing instead of consumer-focused Chapter 13 bankruptcy.
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