Automatic Adjustment in the Bankruptcy Code and Official Bankruptcy Forms
On April 1, 2007, automatic adjustments to the dollar amounts stated in various provisions of the Bankruptcy Code and one provision of Title 28 of the United States Code became effective. The amended dollar amounts apply to cases filed on or after April 1, 2007. The amended dollar amounts affect, among other matters, the eligibility of a debtor to file under chapters 12 and 13 of the Bankruptcy Code, certain maximum values of property that a debtor may claim as exempt, the maximum amount of certain claims entitled to priority, the calculation of the “means test” for chapter 7 debtors, the duration of a chapter 13 plan, the definition of a small business debtor, the minimum aggregate value of claims needed to commence an involuntary bankruptcy, the value of “luxury goods and services” deemed to be nondischargeable, and the location where the trustee may commence certain proceedings to recover a money judgment or property. In the Bankruptcy Reform Act of 1994, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Congress provided for the automatic adjustment of these dollar amounts at three-year intervals.
The adjustments reflect the change in the Consumer Price Index for All Urban Consumers published by the United States Department of Labor for the three-year period ending December 31, 2006, and rounded to the nearest $25. Use of this formula to adjust specified dollar amounts in the Bankruptcy Code is prescribed by 11 U.S.C. § 104(b)(1).
The attached chart shows the affected sections of the Bankruptcy Code and Title 28 and both the current and the revised dollar amounts in those sections. Additionally, seven of the Official Bankruptcy Forms contain references to several of the affected dollar amounts:
• Official Form 1, Voluntary Petition
• Official Form 6C, Schedule of Property Claimed as Exempt
• Official Form 6E, Schedule of Creditors Holding Claims Entitled to Priority
• Official Form 7, Statement of Financial Affairs
• Official Form 10, Proof of Claim
• Official Form 22A, Statement of Current Monthly Income and Means Test Calculation (Chapter 7)
• Official Form 22C, Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income (Chapter 13)
These forms will apply to cases filed on or after April 1, 2007. The revised forms
incorporating the changes are available on the Court's website at www.innb.uscourts.gov.
