08/05/2026
One of the few bright spots of the COVID-19 pandemic was a temporary adjustment to the chapter 13 debt limit under the CARES Act. Although that legislation sunset, I'm excited to see that Congress is taking steps to permanently adopt the provisions, including a $2.75 million combined debt limit in chapter 13 cases. If passed, this would provide a meaningful change for NY residents who are otherwise precluded from filing chapter 13 due to a high (often defaulted) mortgage balance on their primary residence. This legislation would also help millions of small businesses qualify for Subchapter V and expand the ability of small business owners to qualify for chapter 13 despite large personal guarantees on business loans (including those SBA Economic Injury Disaster Loans (EIDL) originated during the pandemic).
Legislation would permanently raise Chapter 13 and Subchapter V debt limits and eliminate separate secured and unsecured debt thresholds