Cite as: Keith M. Lundin, Lundin On Chapter 13, § 6.2, at ¶ ____, LundinOnChapter13.com (last visited __________).
Section 109(e) restricts access to Chapter 13 for individuals with regular income by fixing strict debt limitations. Most Chapter 13 eligibility battles require interpretation of § 109(e). The section contains key terms of art to define debts that are counted or not counted to determine whether an individual is eligible: noncontingent, liquidated, unsecured and secured. The Bankruptcy Reform Act of 19941 substantially increased the debt limitations on eligibility for Chapter 13 with respect to cases filed after October 22, 1994.2 The limits adjusted upward again on April 1, 1998, and adjust automatically on April Fools’ Day every three years thereafter based on changes in the Consumer Price Index.3