I have been working with an attorney for two months on a Chapter 13 case. When my husband and I showed up for our appointment to sign the final papers he said that we have too much debt for a Chapter 13 and will need to file a Chapter 11, which is much more complicated and expensive. We have unsecured debt that totals $295,995. Everything I have looked up says the limit is $336,900 but the attorney is saying Title 11 USC 109 puts a $250,000 limit on unsecured debt. Which is right?

As far I know the unsecured debt limit for ch 13 is indeed $336,900. The limits for both secured and unsecured debts have increased for ch 13 bankruptcy from April 1st 2007. IMO you may need to consult another atty.

However, the following thread may help you in learning the options if you really can't qualify for ch 13.

http://www.debtconsolidationcare.com...chapter13.html

Hope the experts would comment on your query soon.