by Certain dollar amounts in the U.S. Bankruptcy Code will increase effective April 1, 2022, pursuant to 11 U.S.C. §104. On February 4, 2022, the Judicial Conference of the United States announced and detailed these changes in The Federal Register. See Adjustment of Certain Dollar Amounts in the Bankruptcy Code, 87 Fed. Reg. 6625 (February 4, 2022).
Changes relevant to consumer bankruptcy attorneys include:
- 11 U.S.C. § 109(e) (debt limits for chapter 13):
- The unsecured debt cap has increased from $419,275 to $465,275.
- The secured debt cap has increased from $1,257,850 to $1,395,875.
- 11 U.S.C. § 522(d) (federal exemptions):
- Section 522(d)(1) (homestead exemption) has increased from $25,150 to $27,900.
- Section 522(d)(2) (motor vehicle exemption) has increased from $4,000 to $4,450.
- Section 522(d)(3) (household goods etc. exemption) has increased from $625 to $700 for value in any particular item and from $13,400 to $14,875 in aggregate value.
- Section 522(d)(4) (jewelry) has increased from $1,700 to $1,875.
- Section 522(d)(5) (unused amounts from 522(d)(1)) has increased from $1325 to $1,475 for value in any particular item and from $12,575 to $13,950 in aggregate value.
- 11 U.S.C. § 522(n) (Exemption cap for certain individual retirement accounts) has increased from $1,362,800 to $1,512,350.
- 11 U.S.C. § 707(b)(2)(A)(i)(Means Test) – CMI is not less than the lesser of –
- Section 707(b)(2)(A)(i)(I) 25% of unsecured claims or $9,075 (up from $8,175) or
- Section 707(b)(2)(A)(i)(II) $15,150 (up from $13650).
- Section 707(b)(2)(A)(ii)(IV) (necessary dependent school expenses) has increased from $2,050 to $2,275.
- Section 707(b)(6)(C) (to calculate median income for family greater than 4) the amount per additional family member has increased from $750 to $825.