Currently there are many news stories about inflation in the United States as well as abroad. An individual who is deeply indebted might ask: "What effect will inflation have on my bankruptcy?" If you are in a Chapter 7 bankruptcy, the answer is "likely none." However, in a time of rapidly increasing wages (definitely not here yet) which often accompanies inflation, then wage inflation may affect your eligibility under Section 707(b) of the Bankruptcy Code. In other words, in a high inflation environment you might be considered "too rich" to file a Chapter 7! But this is unlikely in most inflation scenarios.  In a Chapter 13 payout plan, the effect of inflation does matter. In a Chapter 13, the bankruptcy code imposes a "best interests of creditors test" commonly referred to as the "more than test." What this means is that your payout to unsecured (noncollateralized) creditors in a Chapter 13 plan must be "more than" what they would have received had you filed a Chapter 7 liquidation. In other words, assuming that your estate were liquidated in a Chapter 7, and each creditor were to receive ten cents on each dollar owed them, then, in a Chapter 13, you must pay at last that much plus a penny, to meet the best interests of creditors test. Inflation affects this calculation by increasing the fair market value (in dollar terms) of your non-exempt property. In simpler terms, if you had non-exempt property worth $10,000.00, then you must pay $10,000.01 into your Chapter 13 bankruptcy. If that property is increasing in value by inflation–or by hyperinflation–then that $10,000.00 fair market value might soon increase to $15,000.00, $20,000.00, or more, in a very short time.