The U.S. government has updated the Federal Register with new federal bankruptcy exemption amounts effective April 1, 2019.
This affects not only federal bankruptcy exemptions under 11 U.S.C. § 522 but also the exemption amounts for a few states that tie their exemption amounts to the federal amounts, including Maryland and Ohio, and California.
As of April 1, 2019, the new federal bankruptcy exemption amounts and rules are as listed below.
2019 Federal Bankruptcy Exemption Changes By Subject Matter
The following list groups the 2019 changes by subject. For more information on each of these topics, see our 50 State Bankruptcy Exemptions section.
Filing Limits
The debt limit for filing for Chapter 13 increases from 394,725 to $419,275.
Means Test Form
The maximum monthly education expense for each dependent student (line 29) changes to $170.83.
Pensions / IRA
The IRA exemption increases from 1,283,025 to $1,362,800.
Federal Bankruptcy Exemptions as of April 1, 2019
| Exemption §522(d) | Current | New |
|---|---|---|
| Homestead (1) | $23,675 | $25,150 |
| Motor Vehicle (2) | $3,775 | $4,000 |
| Household (3) | $600 (per item) $12,625 (total) |
$625 $13,400 |
| Jewelry (4) | $1,600 | $1,700 |
| Wildcard (5) | $1,250 $11,850 (homestead carryover) |
$1,325 $12,575 |
| Trade (6) | $2,375 | $2,525 |
| Life Insurance (8) | $12,625 | $13,400 |
| Personal Injury (11)(D) | $23,675 | $25,150 |
2019 Bankruptcy Changes by Form
The following list shows 2019 changes to official bankruptcy forms and instructions.
- Official Form 106C, The Property You Claim as Exempt, Line 3
- Official Form 107, Your Statement of Financial Affairs for Individuals Filing for Bankruptcy, Line 6
- Official Form 122A-2, Chapter 7 Means Test Calculation, Lines 29 and 40
- Official Form 122C-2, Chapter 13 Calculation of Your Disposable Income, Line 29
- Official Form 201, Voluntary Petition for Non-Individuals, Line 8
- Official Form 207, Statement of Your Financial Affairs, Lines 3 and 4
- Official Form 410, Proof of Claim, Line 12
- Director’s Form 2000, Required Lists, Schedules, Statements, and Fees, Pages 2, 3, and 4
- Director’s Form 2830, Chapter 13 Debtor's Certifications Regarding Domestic Support Obligations and Section 522(q), Part III
- Instructions for Individual Debtors, Pages 9 and 24
- Instructions for Non-Individual Debtors, Page 12
- Director’s Form 2500E, Instructions, Page 1
2019 Bankruptcy Changes by Federal Code Section
Affected sections |
Amount to be adjusted |
New (adjusted) dollar amount 1 |
|---|---|---|
| 28 U.S.C. | ||
| Section 1409(b)—a trustee may commence a proceeding arising in or related to a case to recover | ||
| (1)—money judgment of or property worth less than | $1,300 | $1,375 |
| (2)—a consumer debt less than | 19,250 | 20,450 |
| (3)—a non consumer debt against a non insider less than | 12,850 | 13,650 |
| 11 U.S.C. | ||
| Section 101(3)—definition of assisted person | 192,450 | 204,425 |
| Section 101(18)—definition of family farmer | (*) 4,153,150 | (*) 4,411,400 |
| Section 101(19A)—definition of family fisherman | (*) 1,924,550 | (*) 2,044,225 |
| Section 101(51D)—definition of small business debtor | (*) 2,566,050 | (*) 2,725,625 |
| Section 109(e)—debt limits for individual filing bankruptcy under chapter 13 | (*) 394,725 (*) 1,184,200 |
(*) 419,275 1,257,850 |
| Section 303(b)—minimum aggregate claims needed for the commencement of an involuntary chapter 7 or 11 petition | ||
| (1)—in paragraph (1) | 15,775 | 16,750 |
| (2)—in paragraph (2) | 15,775 | 16,750 |
| Section 507(a)—priority expenses and claims | ||
| (1)—in paragraph (4) | 12,850 | 13,650 |
| (2)—in paragraph (5)(B)(i) | 12,850 | 13,650 |
| (3)—in paragraph (6)(B) | 6,325 | 6,725 |
| (4)—in paragraph (7) | 2,850 | 3,025 |
| Section 522(d)—value of property exemptions allowed to the debtor | ||
| (1)—in paragraph (1) (homestead) | 23,675 | 25,150 |
| (2)—in paragraph (2) (motor vehicle) | 3,775 | 4,000 |
| (3)—in paragraph (3) (household property per item /aggregate) |
600 12,625 |
625 13,400 |
| (4)—in paragraph (4) (jewelry) | 1,600 | 1,700 |
| (5)—in paragraph (5) (wildcard) (unused homestead, up to) |
1,250 11,850 |
1,325 12,575 |
| (6)—in paragraph (6) (tools of trade) | 2,375 | 2,525 |
| (7)—in paragraph (8) (life insurance) | 12,625 | 13,400 |
| (8)—in paragraph (11)(D) (personal injury) | 23,675 | 25,150 |
| Section 522(f)(3)—exception to lien avoidance under certain state laws | 6,425 | 6,825 |
| Section 522(f)(4)—items excluded from definition of household goods for lien avoidance purposes | (*) 675 | (*) 725 |
| Section 522(n)—maximum aggregate value of assets in individual retirement accounts exempted | 1,283,025 | 1,362,800 |
| Section 522(p)—qualified homestead exemption | 160,375 | 170,350 |
| Section 522(q)—state homestead exemption | 160,375 | 170,350 |
| Section 523(a)(2)(C)—exceptions to discharge | ||
| (1)—in paragraph (i)(I)—consumer debts for luxury goods or services incurred < 90 days before filing owed to a single creditor in the aggregate | 675 | 725 |
| (2)—in paragraph (i)(II)—cash advances incurred < 70 days before filing in the aggregate | 950 | 1,000 |
| Section 541(b)—property of the estate exclusions | ||
| (1)—in paragraph (5)(C)—education IRA funds in the aggregate | 6,425 | 6,825 |
| (2)—in paragraph (6)(C)—pre-purchased tuition credits in the aggregate | 6,425 | 6,825 |
| (3)—in paragraph (10)(C)—qualified ABLE program funds in the aggregate | 6,425 | 6,825 |
| Section 547(c)(9)—preferences, trustee may not avoid a transfer if, in a case filed by a debtor whose debts are not primarily consumer debts, the aggregate value of property is less than | 6,425 | 6,825 |
| Section 707(b)—dismissal of a chapter 7 case or conversion to chapter 11 or 13 (means test) | ||
| (1)—in paragraph (2)(A)(i)(I) | 7,700 | 8,175 |
| (2)—in paragraph (2)(A)(i)(II) | 12,850 | 13,650 |
| (3)—in paragraph (2)(A)(ii)(IV) | 1,925 | 2,050 |
| (4)—in paragraph (2)(B)(iv)(I) | 7,700 | 8,175 |
| (5)—in paragraph (2)(B)(iv)(II) | 12,850 | 13,650 |
| (6)—in paragraph (5)(B) | 1,300 | 1,375 |
| (7)—in paragraph (6)(C) | 700 | 750 |
| (8)—in paragraph (7)(A)(iii) | 700 | 750 |
| Section 1322(d)—contents of chapter 13 plan, monthly income | (*) 700 | (*) 750 |
| Section 1325(b)—chapter 13 confirmation of plan, disposable income | (*) 700 | (*) 750 |
| Section 1326(b)(3)—payments to former chapter 7 trustee | 25 | 25 |
| 1 The New (Adjusted) Dollar Amounts reflect a 6.218 percent increase, rounded to the nearest $25. | ||
| * Each time it appears. |
[FR Doc. 2019-01903 Filed 2-11-19; 8:45 am]
More Information
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