The numbers are out for the April 1 inflation adjustment in dollar amounts in the bankruptcy code. The numbers increase 6.3%.
Every three years, the bankruptcy numbers are automatically adjusted for the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor. The Judicial Conference publishes the new numbers and they take effect for bankruptcy cases filed on or after April 1, 2013.
The chart of changes in bankruptcy code dollar figures were published today and can be found in the Federal Register, Vol. 78, No. 35, Thursday, February 21, 2013, Notices, on page 12090.
The changes will make it a little easier for debtors to get a fresh start in bankruptcy. More property can be retained and exempted by debtors using the federal exemptions. The safe harbor before the mansion loophole is closed enlargens. More people will qualify for chapter 13 bankruptcy reorganization as the debt limits go up. The definition of family farmer for chapter 12 bankruptcy relief broadens.
Higher limits make it more difficult for trustees or the U.S. Trustee to challenge bankruptcy cases. The means test thresholds ease making more people eligible for chapter 7 bankruptcy or less payment to unsecured creditors in chapter 13 bankruptcy. Larger amounts of payments to creditors within 90 days of bankruptcy filing will be sheltered from recovery by trustees. Credit card charges for cash advances and luxury goods must be higher to be presumed fraudulent under the new dollar figures.
Latest posts by Jill Michaux, Esq. (see all)
- Last Day to Comment on New Chapter 13 Plan, Petition, Schedules, Means Test, Bankruptcy Rules Changes - February 17, 2014
- Does Chapter 13 Mean Paying All Creditors Back? It Could Be Zero to Unsecured Claims - June 18, 2013
- Random Bankruptcy Audits Stopped - April 24, 2013
- What’s Baseball Got to Do with Bankruptcy? - March 31, 2013
- Bankruptcy Code Dollar Figures Raised 6.3% for Inflation - February 21, 2013
Last modified: June 4, 2013