Bankruptcy Gets New Numbers All Around
Appropriate for the day after Easter, Monday April 1 will be the first day in a new bankruptcy world.
Monday, all of the dollar values we work with in filing bankruptcy cases are adjusted for the cost of living.
Every three years, the dollar values in the bankruptcy code are adjusted. The next adjustment is April 1, 2013. The most widely-felt change increases the caps on the amount of debt one can have and still qualify for Chapter 13.
Secured debt limit: $1,149,525
Unsecured debt limit: $383,175
The dollar values of the federal bankruptcy exemptions increase, which is important in those states that permit the use of the federal exemptions. You can download a table Bankruptcy_Code_increases, showing the old numbers and the new numbers.
Means test data
New figures for state median family income become applicable on April 1st. The median family income in the state is the dividing line that determines whether a person filing bankruptcy is subject to the means test. In California, those numbers, come Monday, will be:
One person family $48,415
Two persons 63,030
Three persons 67,401
Four persons 75,656
The numbers for means test expenses controlled by the IRS National Standards remain unchanged. National standards provide the allowances for food, clothing, housekeeping supplies and personal care.
These change too on April 1 with the tri annual cost of living adjustment.
Incredibly, the new numbers don’t seem to be available anywhere. My phone calls to the Administrative Office of the Courts on the issue haven’t been returned.
More when I have it.
Image courtesy of Flickr and RichardBowen.