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Debt Caps Increase for Chapter 13s — Big Help for Those With Large Student Loans

Whoo hoo, just in time to save one of our Chapter 13s with crazy high student loan balances and an ED POC that was gonna torpedo us.  Now we are going to be able to file our adversary to hopefully drastically reduce the private student debt and make our client’s life much better!
Changes relevant to consumer bankruptcy attorneys starting April 1 include:
  • 11 U.S.C. § 109(e) (debt limits for chapter 13):The unsecured debt cap has increased from $419,275 to $465,275.
    The secured debt cap has increased from $1,257,850 to $1,395,875

NACBA just published the new numbers for this and more.

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