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Automatic Adjustment of Certain Dollar Amounts in the Bankruptcy Code and Forms

Friday, March 8, 2019

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 become effective. The adjusted dollar amounts will apply to cases filed on or after April 1, 2019.

The Bankruptcy Code provides for automatic adjustment of certain dollar amounts at three-year intervals. The relevant provisions are codified in 11 U.S.C. § 104(a). The adjusted dollar amounts will affect, among other matters:

  • 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.

Seven of the Official Forms and two of the Director’s Forms contain references to several of the affected dollar amounts:

  • Official Form 106C, The Property You Claim as Exempt;
  • Official Form 107, Your 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;
  • 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 Certifications Regarding Domestic Support Obligations and Section 522(q);

Click here to view the updated forms.