Eric R. Von Helms
Section 104(a) of the Federal Bankruptcy Code provides for automatic adjustments to certain dollar amounts in the Code every three years. (11 U.S.C. § 104(a)). The most recent adjustments took effect on April 1, 2022, and apply to all cases commenced on or after that date. Below is a summary of adjustments that may be relevant to business lenders and creditors. For a full list of the adjustments, click here.
¹ Legislation is currently pending in Congress to increase this limit to $7,500,000, which would return the limit to the pandemic-related temporary increase under the CARES Act, which expired at the end of March, 2022.
The court may dismiss a Chapter 7 case whose debts are primarily consumer debts (or convert it to a Chapter 11 or 13) if the court finds the granting of relief would be an abuse of the provisions under Chapter 7.
For more information on this article or other bankruptcy-related matters, please contact KMK Attorneys Samuel C. Wisotzkey (email@example.com), or Eric R. von Helms (firstname.lastname@example.org). Both can be reached at (414) 962-5110.