Contact Us
Please fill out the form below and our attorney will contact you.
Our Offices
Ratings & Reviews
-
Mr Zimmerman was helpful and kind and prompt . He always answers his phone and that is refreshing . I will be using him for my bankruptcy in the future. He is one of the good ones . He is an outstanding attorney who truley care . He made ev...
Show More -
Mr. Zimmermann is a fantastic bankruptcy attorney who handled my case with care, efficiency and urgency. We were able to beat a judgement against me in the nick of time, and I truly feel a sense of relief due to the services of Mr. Zimmerma...
Show More -
This Lawyer will go above and beyond for you. As well as show tremendous empathy for those who are vulnerable and scared. His compassion to help civilian's shows through his actions and with his word. When he says he is going to call he cal...
Show More -
I’ve worked with Mr.Zimmerman on two different legal issues. In both instances he was fantastic! He is extremely knowledgeable and compassionate and able to breakdown a course of action into language anyone can understand. I would highly re...
Show More -
I highly recommend Mr. Zimmermann as an attorny. I recently purchased an investment property and boy was he helpful. He was easily available, very clear in explaining various concepts, laws and regulations, and provided very helpful tips o...
Show More
- posted: Sep. 11, 2025
Since 2020, several changes have been made to the maximum amount of debt someone can have if they wish to file for relief through Chapter 13 bankruptcy. This type of proceeding allows individuals with a regular income to repay all or part of their debts on a schedule tailored to their circumstances.
Given the economic pressures caused by the COVID-19 pandemic, the limit was expanded to $2.75 million temporarily. This expired in June 2024, which roughly cut the maximum debt amount in half. Now, the allowable debt limits have been increased to $1,580,125 for secured debts and $526,700 for unsecured debts. These amounts apply to cases filed between April 1, 2025 and March 31, 2028.
Should you be unable to meet your financial obligations despite the fact that you have a steady job, Chapter 13 bankruptcy could be the right option, and the increased debt limits make it possible for more people to take advantage of its benefits. To understand if you qualify, it’s important to know the difference between secured and unsecured debt.
Secured debt is backed by collateral, meaning the creditor holds a security interest in an asset owned by the debtor. Common examples include mortgages and car loans, where the property or vehicle serves as collateral. If the debtor defaults on the loan, the creditor can seize the collateral to recoup losses. Secured debt generally offers creditors more protection, lowering their risk. One of the key advantages of Chapter 13 bankruptcy is that a debtor’s assets are not liquidated to repay creditors, so a filer can keep their home and vehicle.
Conversely, unsecured debt has no collateral backing it. Credit card balances, medical bills and personal loans fall into this category. For these obligations, creditors rely on the debtor’s promise to pay, and in cases of default, they have no specific asset they can recover. Accordingly, unsecured creditors are at a higher risk, which is often reflected in higher interest rates designed to offset the potential for non-payment.
By opting for Chapter 13, debtors commit to a proactive approach to resolving their financial challenges, fostering the potential for solvency and stability. As individuals explore their options, consulting with an experienced attorney is the best way to figure out the best path toward long-term relief.
The Law Offices of James C. Zimmermann represents New Jersey clients in Chapter 13 proceedings and other bankruptcy matters. You can schedule a free initial consultation, by calling 973-764-1633 or contacting us online. We have locations in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.
