Moving Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2022 – Insolvency/Bankruptcy/Re-structuring – United States – Mondaq News Alerts

08 February 2022

Cooley LLP

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An official notice from the Judicial Conference of the United States wasjust published announcing that certain dollar amounts in theBankruptcy Code will be increased a larger than usual 10.973% thistime for new cases filed on or after April 1, 2022. Follow thislink for the Federal Register page with a chart listing allof the updated dollar amounts. Among the most meaningfulincreases for Chapter 11 and other business bankruptcy cases:

Other adjustments will affect consumers more than businessdebtors. For example, the debt limit for an individual to qualifyfor a Chapter 13 bankruptcy case will rise to $1,395,875 of secureddebt, and certain exemption amounts will also increase.

Given recent inflation, these increases are larger than usual.Be sure to keep them in mind when assessing cases filed after April1, 2022. Official bankruptcy forms will likely be updated as April1st draws near.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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One year ago, we wrote that, unlike in 2019, when the large business bankruptcy landscape was generally shaped by economic, market, and leverage factors, the COVID-19 pandemic dominated the narrative in 2020.

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Moving Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2022 - Insolvency/Bankruptcy/Re-structuring - United States - Mondaq News Alerts