The upper debt limits for going in to Chapter 13 bankruptcy increased as of April 1, 2016.
Chapter 13 debtors must have less than $1,184,200 in secured loans in order to qualify for relief.
They also must have less than $394,725 in unsecured loans to qualify.
The debt limits are adjusted automatically every three years, based on consumer price inflation information. The new limits represent a modest increase over the calculations made in 2013.
Student loan debt is almost always unsecured debt, so the increase could be a boon to graduate student debtors with over $300,000 in student loans, or to parents helping many children through college. For those stuck with massive monthly student loan payments, Chapter 13 is sometimes a viable option where negotiation fails and attachments are threatened.