Section 104(a) of the Federal Bankruptcy Code provides for automatic adjustments to certain dollar amounts in the Bankruptcy Code every three years. (11 U.S.C. § 104(a)). The most recent adjustments took effect on April 1, 2019, and apply to all cases commenced on or after that date. Below is a summary of many adjustments that may be relevant to business lenders and creditors.
Many of the federal exemption amounts have increased, including the homestead, wildcard, individual retirement account, and household items exemptions. For a more detailed list of the exemption adjustments, please review our Exemptions and Lien Avoidance Summary article.
Chapter 7 Dismissal – Presumption of Abuse
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.
If you have any questions regarding this article or other bankruptcy-related matters, please contact attorney Matthew P. Gerdisch (firstname.lastname@example.org) or attorney Samuel C. Wisotzkey (email@example.com) at (414) 962-5110.
For a full list of the adjustments, click here.
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