Automatic adjustments will be made on April 1, 2019, to dollar amounts stated in various provisions of the Bankruptcy Code, one provision in Title 28, seven Official Bankruptcy Forms, and two Director's Forms. The adjustments will apply to cases filed on or after April 1, 2019.
The Bankruptcy Code, 11 U.S.C. § 104(a), provides the Judicial Conference make automatic adjustments of certain dollar amounts at three-year intervals. The adjustment reflects changes in the Consumer Price Index for all Urban Consumers for the most recent three-year period ending immediately before the year in which the adjustment is made and rounded to the nearest $25. The Conference has delegated that authority to the Administrative Office. The revised dollar amounts were published on February 12, 2019 in volume 84, number 29, of the Federal Register at pages 3,488-89. 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.
The Official Forms and Director's Forms impacted with dollar amount adjustments include:
- 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 Your Financial Affairs for Non-Individuals Filing for Bankruptcy
- Official Form 410, Proof of Claim
- Director's Form 2000, Required Lists, Schedules, Statements, and Fees
- Director's Form 2830, Chapter 13 Debtor's Certifications Regarding Domestic Support Obligations and Section 522(q)
The revised forms have been posted to the Pending Changes in the Bankruptcy Forms page. Once effective, the revised forms will be available on the Bankruptcy Forms page.