A Conversation About Chapter 13 Debt Limitations of 11 U.S.C. § 109(e)

By Sarah E. Smith, Esq., Senior Staff Attorney, Kathleen A. Leavitt, Chapter 13 Bankruptcy Trustee

As staff attorney for a Chapter 13 Trustee, I’ve encountered more than my share of §109(e) eligibility issues or, as sometimes referred to, “debt limit” issues. When I talk about debt limit I’m referring to the section of the Bankruptcy Code that sets forth eligibility requirements for a Chapter 13 debtor. Specifically, 11 U.S.C. § 109(e) that states, in pertinent part: “Only an individual with regular income that owes, on the date of filing of the petition, noncontingent, liquidated, unsecured . . .

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