The official bankruptcy forms have also been revised to reflect these new dollar amounts.
The updated forms include the official Proof of Claim form (the link has a copy of the revised form), as well as a number of other commonly used bankruptcy forms.
An official notice from the Judicial Conference of the United States was just published announcing that certain dollar amounts in the Bankruptcy Code will be adjusted upward by 13.2004%, perhaps the largest increase to date. Inflation adjustments are made to certain Bankruptcy Code dollar amounts every three years, and these new amounts will apply to cases filed on or after April 1, 2025.
The employee compensation and employee benefit plan contribution priorities under Sections 507(a)(4) and 507(a)(5) both increase to $17,150 from $15,150;
The consumer deposit priority under Section 507(a)(7) rises to $3,800 from $3,350;
The total amount of claims required to file an involuntary petition rises to $21,050 from $18,600;
The dollar amount in the bankruptcy venue provision, 28 U.S.C. Section 1409(b), which requires that actions to recover for non-consumer, non-insider debt be brought against defendants in the district in which they reside, has increased to $31,425 from $27,750;
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 to $8,575 from $7,575; and
The total debt amount in the definition of small business debtor in Section 101(51D) will rise to $3,424,000 from $3,024,725.
Other adjustments will affect consumers more than business debtors. For example, the debt limit for an individual to qualify for a Chapter 13 bankruptcy case will rise to $1,580,125 of secured debt, and certain exemption amounts will also increase.
These new dollar amounts, on top of the 10.973% increase made in 2022, are now approximately 25% higher than the amounts in effect in 2019. Be sure to keep the new, higher amounts in mind when assessing cases filed after April 1, 2025. Official bankruptcy forms will likely be updated as the April 1, 2025 effective date draws near.
The employee compensation and employee benefit plan contribution priorities under Sections 507(a)(4) and 507(a)(5) both increase to $15,150 from $13,650;
The consumer deposit priority under Section 507(a)(7) rises to $3,350 from $3,025;
The total amount of claims required to file an involuntary petition rises to $18,600 from $16,750;
The dollar amount in the bankruptcy venue provision, 28 U.S.C. Section 1409(b), which requires that actions to recover for non-consumer, non-insider debt be brought against defendants in the district in which they reside, has increased to to $27,750 from $25,000;
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 to $7,575 from $6,825; and
The total debt amount in the definition of small business debtor in Section 101(51D) will rise to $3,024,725 from $2,725,625.
Other adjustments will affect consumers more than business debtors. For example, the debt limit for an individual to qualify for a Chapter 13 bankruptcy case will rise to $1,395,875 of secured debt, and certain exemption amounts will also increase.
Given recent inflation, these increases are larger than usual. Be sure to keep them in mind when assessing cases filed after April 1, 2022. Official bankruptcy forms will likely be updated as April 1st draws near.
The official bankruptcy forms have also been revised to reflect these new dollar amounts.
The updated forms include the official Proof of Claim form (the link has a copy of the revised form), as well as a number of other commonly used bankruptcy forms.
The employee compensation and employee benefit plan contribution priorities under Sections 507(a)(4) and 507(a)(5) both increase to $13,650 from $12,850;
The consumer deposit priority under Section 507(a)(7) rises to $3,025 from $2,850;
The total amount of claims required to file an involuntary petition rises to $16,750 from $15,775;
The dollar amount in the bankruptcy venue provision, 28 U.S.C. Section 1409(b), which requires that actions to recover for non-consumer, non-insider debt be brought against defendants in the district in which they reside, has increased to $13,650 from $12,850;
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 to $6,825 from $6,425; and
The total debt amount in the definition of small business debtor in Section 101(51D) will rise to $2,725,625.
Other adjustments will affect consumers more than business debtors. For example, the debt limit for an individual to qualify for a Chapter 13 bankruptcy case will rise to $1,257,850 of secured debt, and certain exemption amounts will also increase.
Although the changes aren’t that large, be sure to keep them in mind when assessing cases filed after April 1, 2019. Official bankruptcy forms will likely be updated as April 1st draws near.
The official bankruptcy forms have also been revised to reflect these new dollar amounts.
The updated forms include the official Proof of Claim form (the link has a copy of the revised form), as well as a number of other commonly used bankruptcy forms.
The employee compensation and employee benefit plan contribution priorities under Sections 507(a)(4) and 507(a)(5) both increase to $12,850 from $12,475;
The consumer deposit priority under Section 507(a)(7) rises to $2,850 from $2,775;
The total amount of claims required to file an involuntary petition rises to $15,775 from $15,325;
The dollar amount in the bankruptcy venue provision, 28 U.S.C. Section 1409(b), which requires that actions to recover for non-consumer, non-insider debt be brought against defendants in the district in which they reside, has increased to $12,850 from $12,475;
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 to $6,425 from $6,225; and
The total debt amount in the definition of small business debtor in Section 101(51D) will rise to $2,566,050.
Other adjustments will affect consumers more than business debtors. For example, the debt limit for an individual to qualify for a Chapter 13 bankruptcy case will rise to $1,184,200 of secured debt, and certain exemption amounts will also increase.
Although the changes aren’t substantial, be sure to keep them in mind when assessing cases filed after April 1st.
