By: Jamie L. Harris, Esq.
The Judicial Conference of the United States issued a Notice in the Federal Register on February 22, 2016 that certain dollar amounts have increased in the sections in title 11 and title 28, United States Code. The new (adjusted) dollar amounts reflect a 3.016 percent increase, rounded to the nearest $25 and will be effective for bankruptcy cases filed after April, 2016. These dollar amounts are automatically adjusted every three years, the more significant adjustments include:
- The increased property exemptions for debtors and increased debt amounts for eligibility for chapter 12 and chapter 13 debtors and small-business chapter 11 debtors.
- A family farmer seeking to file a chapter 12 bankruptcy can now have debts not exceeding $1,924,550.
- The unsecured debt limits for chapter 13 debtors are now $394,725 while the secured debt limits are now $1,184,200.
- The debt limit for a chapter 11 small business debtor is now $2,566,050.
Key federal exemption increases include:
- Raising the homestead exemption from $22,975 to $23,675, motor vehicle exemption from $3,675 to $3,775 and increasing the household goods exemption from $12,250 to $12,625.
- The jewelry exemption has increased from $1,550 to $1,600.
- The wildcard exemption increased to $1,250 and up to $11,850 for any unused portion of the homestead exemption.
Follow this link for the Federal Register page with a chart listing all of the updated dollar amounts.