I’m a real fan of Chapter 13: it’s powerful, flexible, and cost effective. One of its few downsides is that there are caps for how much debt a filer may have and qualify for Chapter 13. Mercifully, those debt limits adjust every three years.

Effective April 1, 2007 the cap on debts in Chapter 13 will increase to $336,900 for unsecured debts and $1,010,650 for secured debts. These limits apply to liquidated debts only; unliquidated debts are not included in the test.

More about Chapter 13.