Tag: chapter 13

chapter 13 debt limits

Chapter 13 Debt Limits (2022 update)

Chapter 13 Debt Limits (2022 update)

Debt Limits in Chapter 13 Bankruptcy

2022 Update: Chapter 13 debt limits limits who can seek relief in Chapter 13 bankruptcy. These eligibility figures are set by law and are adjusted regularly, and restrict which cases can be in Chapter 13 bankruptcy. As you might know, Chapter 13 bankruptcy involves repaying some or all of your debt. People will sometimes ask, “do I qualify for chapter 13?” The answer, like to many legal questions is, “it depends.”

March 2022: The Senate has introduced a bipartisan bill which would increase the Chapter 13 debt limits significantly if it passes. S3823, the Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATCA) would almost double the amount of debt you can have in Chapter 13.

The purpose is so that the Chapter 13 trustee doesn’t administer cases that are too large and burdensome. At some point, the line is drawn, and let’s face it, in Southern California where this Los Angeles bankruptcy attorney practices, the secured Chapter 13 debt limit is inadequate. If someone has a rental property, they’re probably over the line and don’t qualify, which is hardly fair.

To qualify for Chapter 13 bankruptcy, the reorganization bankruptcy, a few things have to be looked at. First, a good Los Angeles bankruptcy attorney will examine your cash flow. That is, can you afford to repay your debts? Or are you struggling to keep your lights on?

Unsecured and Secured: the Chapter 13 Debt Limits

Second, you have to compare your debts against the debt limits. These numbers constantly change. And to be honest, we bankruptcy lawyers have to look them up, since in most cases they’re not a factor. And just when we learn them, they change again.

2022 Updated Chapter 13 Bankruptcy Debt Limits

So, as of April 1, 2022, the Chapter 13 debt limits are

  • Unsecured debt: $465,275 (up from $419,275)
  • Secured debt: $1,395,875 (up from 1,257,850)

These values are effective 4/1/2022, and seem to be still be the most current. Normally, you’d check a government website for updated values. However, as of this writing, even the courts are still listing the chapter 13 debt limits that are from before 2019. Other sites, though, seem to be more current.

Some Blurred Line Debt Limit Examples

Even this is oversimplifying things, because where do lawsuits against you fall? That is, if someone has taken you to court, is it a secured debt or an unsecured one? What if you think you’ll win: does it count as a debt at all?

Another issue arises with student loans, particularly if you cosigned as a parent plus loan and it’s not really your debt. Or is it?

Further, tax debt is another tricky one. Is it unsecured, secured  or both? And what if it’s priority, can it also count against the unsecured debt? What if you dispute it?

There are a lot more issues that can arise, so you’ll want to consult with a skilled Los Angeles bankruptcy attorney who specializes in Chapter 13 bankruptcy. I’d be honored to work with you.

Contact us for a consultation

If you’re in the Los Angeles County area, contact us and let’s arrange for a no-obligation Zoom consultation to see how bankruptcy would help you, and to determine your Chapter 13 eligibility.


    cdcbaa logo

    cdcbaa Moderator Hale Antico Hosts Chapter 13 Trustee Panel

    cdcbaa Moderator Hale Antico to Host Panel for Chapter 13 Trustees

    Program to focus on Variances, Particularly in the Age of Covid

    chapter 13 antico
    Chapter 13 Trustees’ Counsel Share A Lighter Moment with cdcbaa President Attorney Antico

    Post-Seminar Update: It was a fun, two-hour cdcbaa program, and the Chapter 13 trustees’ attorneys were very open with their policies. For instance, the panel shared a lot of information in an engaging format. Also, one of the trustee lawyers said it helped to have them share information; they learned a more efficient way to do things. Finally, the bankruptcy lawyer attendees were very involved, asking questions and even bantering with the Chapter 13 trustees’ lawyers.

    Hale Andrew Antico has been keeping busy being a cdcbaa moderator or host of the bankruptcy association programs. On 9/18/2021, cdcbaa President Hale Andrew Antico will moderate a panel with attorneys for Los Angeles bankruptcy Chapter 13 trustees.  The two-hour talk will focus on policy changes during the COVID-19 pandemic. Further, the focus will be ontrustee variances between the offices. This will help bankruptcy attorneys know how to best work with each respective office.

    Chapter 13 Trustees and cdcbaa Coordination

    In March 2020, the coronavirus pandemic started causing quarantines and lockdowns. Many people in Chapter 13 bankruptcies couldn’t continue making their payments. This caused a lot of concern. This caused the Chapter 13 trustees to have to adjust their policies. The trustees’ offices started developing policies about suspending payments, or keeping tax refunds. That’s the good news.

    The challenge came from each trustee’s office doing things differently. The policies were difficult to track.  So, one benefit of a free-ranging panel discussion is to learn which office expects what. Consequently, This will allow attorneys to better anticipate what’s needed or expected. Also, it will make the trustee’s offices operate more efficiently.

    During the two years as president of the group of Los Angeles bankruptcy attorneys, Hale Antico has hosted over a dozen webinars. These information sessions have featured prominent bankruptcy lawyers, trustees, and judges. As cdcbaa moderator, Mr. Antico also takes questions from the group’s members, and tries to stir helpful discussion.

    If you’re not a member of cdcbaa, you can buy tickets for Saturday’s program from the lawyers’ association website.

     

    save home

    Chapter 13 can Stop House Foreclosure

    Chapter 13 bankruptcy can Stop  House Foreclosure

    Save your Home and Catch up on the Mortgage

    by Hale Andrew Antico, Esq.

    In August 2005, just before the bankruptcy laws changed, I wrote in this space that there was a perfect storm brewing for the average consumer.  Since then, the bankruptcy laws have changes (in the name of reform), and indeed, it is harder — but not impossible — to get a fresh start.

    One area where we can get into debt trouble and feel a financial squeeze is with regard to mortgage payments.  The past few years, property values have been soaring here in Southern California.  This has led to many people to refinance their homes and take “cash out” — in essence using their house as an ATM.  The result of this is that it leads to less equity and a higher mortgage payment.

    What happens if these homes with tapped out equity drop in value?  We’re conditioned to believe that property values only go up Up UP! in Southern California.  However, in 1989-1991, the real estate market peaked, leading to dropping property values.  The result is that many people were “upside down” in their homes, meaning that that they owed more than it was worth.  We expect this from a car loan since a car almost always depreciates faster than we can pay it off.  But with a house?  Yikes.

    Some experts believe that history may be repeating itself. Recently, economics experts are looking at reliable benchmarks like Price-to-Income Ratios and Price-to-Rent ratios and noting that home value are much higher than normal levels.  Even houses in your neighborhood are no longer selling within the same week they’re listed with someone offering $10,000 over the listing price.  Instead, we’re seeing “Reduced!” signs nailed onto those For Sale signs, and reading advice like that in the Los Angeles Daily News suggesting that you list your home in the lower 25% as related to the comparable homes in the neighborhood.  Is there a real estate bubble which will shortly burst, or is the housing market temporarily resting before it continues upwards and onwards?  No one knows for sure.

    If you find yourself in the awful situation where you fall one or two payments behind on the mortgage, there is still hope to stop foreclosure.  A Chapter 13 bankruptcy might be the solution.  This option allows you to get some “breathing room,” stop the collection calls and headaches, and even stop a foreclosure.  People can fall a few months behind, they want to catch up but the lender won’t accept anything but a massive lump sum payment that the troubled homeowner doesn’t have.  A Chapter 13 case can allow you to catch your breath as you demonstrate how you will catch up on your past due mortgage payments, but on a schedule you can actually stick to and afford.  This very helpful type of bankruptcy allows you to reorganize your debt and save your house in Southern California and stop foreclosure.

    Even for people who don’t have a home, a Chapter 13 bankruptcy can provide a light at the end of the tunnel.  It can provide a way to pay what you can afford, and in return, stop lawsuits, wage garnishments, collection headaches and yes, even foreclosures. And then, yes, you can be debt-free in three or five years.  That time will tick off the calendar either way… why not be out of debt in that span?

    So, just because you’re a payment or three behind on that car or home and don’t think you can stop the house foreclosure, don’t lose faith.  There is a way to get some space and time to catch your breath.  You can be out of debt and most importantly, save your home.  Sometimes, bad things happen to good people.  We don’t intend for things to work out the way they do.  But when “life happens” and there is an unanticipated debt problem, when you’re ready to solve it then a Chapter 13 bankruptcy can be the solution to your problem.

    CONTACT US FOR A CONSULT NOW

    Hale Andrew Antico (aka Attorney Antico) is an attorney who specializes in consumer finance.