It hasn’t gotten much publicity yet, but certain dollar amounts in the Bankruptcy Code will be increased for cases filed on or after April 1, 2010. You can find a chart listing all of the changes on this Federal Register page, which printed last month’s official notice from the Judicial Conference of the United States.
Among the most meaningful increases for Chapter 11 and other business bankruptcy cases:
- The total amount of claims required to file an involuntary petition rises to $14,425 from $13,475;
- The employee compensation priority under Section 507(a)(4) increases to $11,725 from $10,950;
- The consumer deposit priority under Section 507(a)(7) rises to $2,600 from $2,425;
- The dollar amount in the bankruptcy venue provision, 28 U.S.C. Section 1409(b), that requires actions for non-consumer, non-insider debt to be brought against defendants in the district in which they reside, has increased to $11,725 from $10,950; and
- The minimum amount required to bring a preference claim against a defendant in a non-consumer debtor case, specified in Section 547(c)(9), rises from $5,475 to $5,850.
Other adjustments will affect consumers more than business debtors. For example, the debt limit for an individual to qualify to file a Chapter 13 bankruptcy case will rise to $1,081,400 of secured debt, and certain exemption amounts will also rise.
Although the changes aren’t substantial, be sure to keep them in mind when assessing cases filed after April 1st.