On April 1, 2019, automatic adjustments to the dollar amounts stated in various provisions of the Bankruptcy Code, and one provision in Title 28 of the United States Code will go into effect. The adjusted dollar amounts will apply to cases filed on or after April 1, 2019. The adjustments reflect the change in the Consumer Price Index for All Urban Consumers published by the U.S. Department of Labor for the three-year period ending December 31, 2018, and are rounded to the nearest $25. The adjusted dollar amounts will affect:
- the eligibility of a debtor to file under chapters 12 and 13 of the Bankruptcy Code;
- the definition of a small business debtor;
- certain maximum values of property that a debtor may claim as exempt;
- the maximum amount of certain claims entitled to priority;
- the calculation of the “means test” for chapter 7 debtors;
- the duration of a chapter 13 plan;
- the minimum aggregate value of claims needed to commence an involuntary bankruptcy case;
- the minimum value for trustee avoidance actions; and
- the value of “luxury goods and services” deemed to be nondischargeable where the trustee may commence certain proceedings to recover a money judgment or property.
Additionally, the following Official Bankruptcy Forms and Director’s Forms contain references to several of the affected dollar amounts:
- Official Form 106C, Schedule C: The Property You Claim as Exempt;
- Official Form 107, Statement of Financial Affairs for Individuals Filing for Bankruptcy;
- Official Form 122A-2, Chapter 7 Means Test Calculation;
- Official Form 122C-2, Chapter 13 Calculation of Your Disposable Income;
- Official Form 201, Voluntary Petition for Non-Individuals Filing for Bankruptcy;
- Official Form 207, Statement of Financial Affairs for Non-Individuals Filing for Bankruptcy;
- Official Form 410, Proof of Claim;
- Director’s Form 2000, Required Lists, Schedules, Statements, and Fees; and
- Director’s Form 2830, Chapter 13 Debtor’s Certification Regarding Domestic Support Obligations and Section 522(q).
A chart showing the affected sections of the Bankruptcy Code and Title 28, with the current and adjusted dollar amount in those sections, is attached here.
The revised forms will be effective on April 1, 2019, and will apply to cases filed on or after that date. The revised forms incorporating the dollar amount changes have been posted to Pending Changes in the Bankruptcy Forms page. Once effective, the revised forms will be available on the Bankruptcy Forms page.