Yes. There is a limit on how much debt you can have and file under chapter 13. However, the limits no longer depend upon the kind of debt and includes both secured debts and unsecured debts combined. The overall Chapter 13 debt limit is $2,750,000 and includes mortgage loans, loans for vehicles and other personal property, other secured debt, and unsecured debt such as personal loans, credit card, taxes, medical debt, etc.

Note that the current limits expire in June of 2024, but may be renewed or increased.

If you exceed these debt limits, you may need to file under Chapter 11 or consider Chapter 7. However, don’t assume that you will not qualify if you believe you are over these limits. Often, there are exceptions to the debt limits, which is a good reason to speak to a qualified bankruptcy attorney.

Note that there is no debt limit to file for Chapter 7 or Chapter 11 bankruptcy.

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