The House of Representatives passed a Bill yesterday called the Bankruptcy Threshold Adjustment and Technical Corrections Act that will increase the debt limit for Chapter 13 bankruptcy filings to $2.75 million. This is great news because the debt limit was $465,275 for unsecured debt and $1,395,875 for secured debt. The increase in the debt limit means that more people will qualify for Chapter 13 which is a much more affordable option than Chapter 11.
The Bill also increased the debt limits for small business debtors in Subchapter V Chapter 11 back to $7.5 million. This will help many small businesses that can benefit from the more affordable Subchapter V option.
The Bill is now headed to the President's desk to be signed into law. The Bill expires in 2 years so it is extremely important that people with high debt loads do not delay in filing bankruptcy. Call the Law Office of Kimberly A. Sheek at 704-842-9776 for your free bankruptcy consultation today!