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New Federal Bankruptcy Exemptions Effective April 1, 2019

On April 1, 2019, the federal bankruptcy exemptions were adjusted. These amounts apply to all actions filed on or after April 1, 2019. Click here for the federal register notice, most of which is below.

Pursuant to section 104 of Title 11, United States Code, certain dollar amounts in title 11 and title 28, United States Code, are increased.

FOR FURTHER INFORMATION CONTACT:

Michele Reed, Chief, Judicial Services Office, Administrative Office of the United States Courts, Washington, DC 20544, Telephone (202) 502-1800, or by email at Judicial_Services_Office@ao.uscourts.gov.

SUPPLEMENTARY INFORMATION:

Section 104(a) of title 11, United States Code, provides the mechanism for an automatic three-year adjustment of dollar amounts in certain sections of titles 11 and 28. Public Law 95-598 (1978); Public Law 103-394 (1994); Public Law 109-8(2005); and Public Law 110-406 (2008). The provision states:

(a) On April 1, 1998, and at each 3-year interval ending April 1 thereafter, each dollar amount in effect under sections 101(3), 101(18), 101(19A), 101(51D), 109(e), 303(b), 507(a), 522(d), 522(f)(3) and 522(f)(4), 522(n), 522(p), 522(q), 523(a)(2)(C), 541(b), 547(c)(9), 707(b), 1322(d), 1325(b), and 1326(b)(3) of this title and section 1409(b) of title 28 immediately before such April 1 shall be adjusted—

(1) to reflect the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent 3-year period ending immediately before January 1 preceding such April 1, and

(2) to round to the nearest $25 the dollar amount that represents such change.

(b) Not later than March 1, 1998, and at each 3-year interval ending on March 1 thereafter, the Judicial Conference of the United States shall publish in the Federal Register the dollar amounts that will become effective on such April 1 under sections 101(3), 101(18), 101(19A), 101(51D), 109(e), 303(b), 507(a), 522(d), 522(f)(3) and 522(f)(4), 522(n), 522(p), 522(q), 523(a)(2)(C), 541(b), 547(c)(9), 707(b), 1322(d), 1325(b), and 1326(b)(3) of this title and section 1409(b) of title 28.

(c) Adjustments made in accordance with subsection (a) shall not apply with respect to cases commenced before the date of such adjustments.

Revision of Certain Dollar Amounts in Bankruptcy Code

Notice is hereby given that the dollar amounts are increased in the sections in title 11 and title 28, United States Code, as set out in the following chart. These increases do not apply to cases commenced before the effective date of the adjustments, April 1, 2019. Seven Official Bankruptcy Forms (106C, 107, 122A-2, 122C-2, 201, 207, and 410) and two Director’s Forms (2000 and 2830), also will be amended to reflect these adjusted dollar amounts.

Dated: February 5, 2019.

Michele Reed,

Chief, Judicial Services Office.

Affected sections of Title 28 U.S.C. and the bankruptcy codeDollar amount to be adjustedNew (adjusted) dollar amount 1
28 U.S.C.
Section 1409(b)—a trustee may commence a proceeding arising in or related to a case to recover
(1)—money judgment of or property worth less than$1,300$1,375
(2)—a consumer debt less than19,25020,450
(3)—a non consumer debt against a non insider less than12,85013,650
11 U.S.C.
Section 101(3)—definition of assisted person192,450204,425
Section 101(18)—definition of family farmer(*) 4,153,150(*) 4,411,400
Section 101(19A)—definition of family fisherman(*) 1,924,550(*) 2,044,225
Section 101(51D)—definition of small business debtor(*) 2,566,050(*) 2,725,625
Section 109(e)—debt limits for individual filing bankruptcy under chapter 13(*) 394,725(*) 419,275
(*) 1,184,2001,257,850
Section 303(b)—minimum aggregate claims needed for the commencement of an involuntary chapter 7 or 11 petition
(1)—in paragraph (1)15,77516,750
(2)—in paragraph (2)15,77516,750
Section 507(a)—priority expenses and claims
(1)—in paragraph (4)12,85013,650
(2)—in paragraph (5)(B)(i)12,85013,650
(3)—in paragraph (6)(B)6,3256,725
(4)—in paragraph (7)2,8503,025
Section 522(d)—value of property exemptions allowed to the debtor
(1)—in paragraph (1)23,67525,150
(2)—in paragraph (2)3,7754,000
(3)—in paragraph (3)600 12,625625 13,400
(4)—in paragraph (4)1,6001,700
(5)—in paragraph (5)1,250 11,8501,325 12,575
(6)—in paragraph (6)2,3752,525
(7)—in paragraph (8)12,62513,400
(8)—in paragraph (11)(D)23,67525,150
Section 522(f)(3)—exception to lien avoidance under certain state laws6,4256,825
Section 522(f)(4)—items excluded from definition of household goods for lien avoidance purposes(*) 675(*) 725
Section 522(n)—maximum aggregate value of assets in individual retirement accounts exempted1,283,0251,362,800
Section 522(p)—qualified homestead exemption160,375170,350
Section 522(q)—state homestead exemption160,375170,350
Section 523(a)(2)(C)—exceptions to discharge
(1)—in paragraph (i)(I)—consumer debts for luxury goods or services incurred < 90 days before filing owed to a single creditor in the aggregate675725
(2)—in paragraph (i)(II)—cash advances incurred < 70 days before filing in the aggregate9501,000
Section 541(b)—property of the estate exclusions
(1)—in paragraph (5)(C)—education IRA funds in the aggregate6,4256,825
(2)—in paragraph (6)(C)—pre-purchased tuition credits in the aggregate6,4256,825
(3)—in paragraph (10)(C)—qualified ABLE program funds in the aggregate6,4256,825
Section 547(c)(9)—preferences, trustee may not avoid a transfer if, in a case filed by a debtor whose debts are not primarily consumer debts, the aggregate value of property is less than6,4256,825
Section 707(b)—dismissal of a chapter 7 case or conversion to chapter 11 or 13 (means test)
(1)—in paragraph (2)(A)(i)(I)7,7008,175
(2)—in paragraph (2)(A)(i)(II)12,85013,650
(3)—in paragraph (2)(A)(ii)(IV)1,9252,050
(4)—in paragraph (2)(B)(iv)(I)7,7008,175
(5)—in paragraph (2)(B)(iv)(II)12,85013,650
(6)—in paragraph (5)(B)1,3001,375
(7)—in paragraph (6)(C)700750
(8)—in paragraph (7)(A)(iii)700750
Section 1322(d)—contents of chapter 13 plan, monthly income(*) 700(*) 750
Section 1325(b)—chapter 13 confirmation of plan, disposable income(*) 700(*) 750
Section 1326(b)(3)—payments to former chapter 7 trustee2525
1 The New (Adjusted) Dollar Amounts reflect a 6.218 percent increase, rounded to the nearest $25.
* Each time it appears.

[FR Doc. 2019-01903 Filed 2-11-19; 8:45 am]

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New Bankruptcy Form, Rules Take Effect

New Bankruptcy Form, Rules Take Effect

Individuals filing for bankruptcy under Chapter 13 must use a new form that presents their payment plan in a more uniform and transparent manner, and creditors will have less time to submit a proof of claim, under new bankruptcy rules and form amendments that took effect Dec. 1.

By creating greater uniformity of where specific types of information must be entered, the new national Chapter 13 plan form will make it easier for creditors, lawyers and judges to ensure that all elements of a bankruptcy agreement reached under Chapter 13 comply with federal laws. Chapter 13, sometimes known as the wage earner’s plan, enables qualified individual filers to reschedule and make debt payments, allowing them to keep their homes and other property.

Bankruptcy courts previously had relied on local versions of Chapter 13 plans, which varied from district to district, in resolving Chapter 13 cases. They now must either use a new national Bankruptcy Form 113, or create a locally adapted form that contains key elements of the national form. In recent months, courts have been updating electronic filing systems and notifying local bankruptcy lawyers and filers of the pending changes.

The deadline for creditors to file a proof of claim was revised in an amendment to Federal Rules of Bankruptcy Procedure 3002.

The new deadline will affect bankruptcies filed under Chapter 7, in which debtors liquidate assets; Chapter 12, which enables family farmers and fishermen to restructure their finances; and Chapter 13. Previously creditors had 90 days after an initial meeting of creditors was held. Now, a proof of claim must be submitted within 70 days of the filing of a bankruptcy petition.

Federal rules amendments typically follow a three-year process, which includes multiple layers of review and extensive public comment.

In April, the Supreme Court transmitted the new rules regarding bankruptcy, as well as amendments to Appellate and Civil Rules of Procedure, and Rules of Evidence, to Congress. The new rules took effect Dec. 1 when Congress did not act to prevent their implementation.

Find a full list of the new rules and form amendments and the Current Rules of Practice and Procedure. Find additional information about the bankruptcy process.

 These new changes will be reflected in the 2018 edition of the Consumer Bankruptcy Handbook

Related Topics: Bankruptcy Courts, Federal Rules

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Major Overhaul to Bankruptcy Forms – Effective December 1, 2015

December 1, 2015 Changes

Most Official Bankruptcy Forms were replaced on December 1, 2015, with substantially revised, reformatted, and renumbered versions.  The 2015 forms are part of a forms modernization project that was begun by the Advisory Committee on Bankruptcy Rules in 2008.  Among other things, the 2015 forms introduce different versions of case opening forms for individual debtors and non-individual debtors.  Links to the instruction booklets for individual debtors, for non-individual debtors, and to a forms number conversion chart can be found below.

The revised forms are easier for debtors to understand and complete, and are designed to work with scheduled enhancements to the federal courts’ case opening and electronic case management system.

Virtually all director’s bankruptcy forms were also replaced by updated and renumbered versions on December 1, 2015.  The new forms are available at Bankruptcy Forms.

Instructions for Individual Debtors (pdf)

Instructions for Non-Individual Debtors (pdf)

Forms Number Conversion Chart (pdf)