Thursday, March 7, 2013

Bankruptcy Code CPI Dollar Amount Adjustments

Section 104(b) of the Bankruptcy Code provides the mechanism for an automatic 3-year adjustment of dollar amounts in certain sections of the Bankruptcy Code. The changes began with April 1, 1998 and continued with each 3-year interval thereafter. The adjustment is made to reflect the change in the Consumer Price Index for All Urban Consumers for the most recent 3-year period ending immediately before the January 1 preceding such April 1. Some of the most important adjustments are made for the following bankruptcy code section:

Section 101(3) definition of an assisted person - $150,000 to $164,250

Section 109(e) debt limitations for chapter 13 eligibility - $307,675 to $336,900 for unsecured debt and $922,975 to $1,010,650 for secured debt

Section 522(p) limitation on interest acquired during 1215 days prior to filing on state homestead exemption - $125,000 to $136,875

Section 522 (q) certain limitations on state homestead exemption - $125,000 to $136,875