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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...
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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...
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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...
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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...
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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...
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- posted: Oct. 10, 2025
For many Americans who are unable to catch up on their financial obligations despite earning a steady income, Chapter 13 bankruptcy is the best solution. This is particularly true for homeowners who have the opportunity to keep their residence while stopping creditor harassment and establishing a fair repayment plan. Though qualifying for Chapter 13 bankruptcy is simpler than Chapter 7, there are some restrictions, one of which involves the amount of debt that personal filers can have.
Over the past several years, the Chapter 13 debt limit has fluctuated. Prior to the COVID-19 pandemic, the amounts were approximately $465,000 of unsecured debt and $1.39 million of secured debt (such as mortgages and car loans). Among the provisions in the CARES Act passed in reaction to the pandemic, was a temporary increase in the Chapter 13 limit to $2.75 million. This rule made no distinction between secured and unsecured debt.
On June 21, 2024, the CARES increase expired and the previous debt limit was restored. These figures increased on April 1, 2025 to $526,000 for unsecured debt and $1.58 million for secured debt. Adjustments for inflation are scheduled every three years afterward. However, a bipartisan effort in Congress seeks to boost the Chapter 13 debt limit back to $2.75 million in total debt regardless of whether it is secured or unsecured.
Importantly, the increased caps—which expired last June when temporary pandemic adjustments lapsed—would apply retroactively to cases filed during the gap period, protecting debtors who were excluded by the lower limits. In high-cost states such as New Jersey, it’s not uncommon for a primary mortgage, a home equity line and ordinary consumer obligations to push a household near or above the current cap—even when the borrower has steady income and a viable repayment plan. Add in substantial student loans or medical bills, and eligibility can disappear under today’s thresholds.
The timing is also significant. Housing costs, property taxes and insurance premiums have climbed, while student loan payments have restarted for many borrowers. A higher, unified debt limit would provide a clearer gateway to Chapter 13’s structured relief—without forcing consumers toward more complex (and often more expensive) alternatives.
The Law Offices of James C. Zimmermann represents New Jersey residents in Chapter 13 bankruptcy proceedings as well as other debt relief matters. For a free initial consultation, please call 973-764-1633 or contact us online. Our five North Jersey offices are in Vernon, Wayne, Pompton Lakes, Hackensack and Nutley.
