Bankruptcy Code Changes Go Into Effect on April 1
There are many bankruptcy code details you should be aware of when filing for bankruptcy. However, bankruptcy law does change sometimes. A compassionate bankruptcy lawyer can help you navigate the law and your financial situation.
Increase in Bankruptcy Code Dollar Amounts Taking Effect on April 1
The U.S. Bankruptcy Code requires that dollar amounts and limitations be adjusted every three years to account for inflation. These amounts will increase an average of 11 percent this year, which is higher than usual. The bankruptcy law changes will go into effect on April 1, 2022.
Overview of the Changes in the Bankruptcy Code
A few of the major bankruptcy code changes this year include the following:
- Median family income — Debtors filing after April 1, 2022, must use the new median family income figures when completing the bankruptcy means test forms. These are used to decide if they qualify for bankruptcy and establish payment plans. In North Carolina, the updated U.S. Census Bureau median family incomes will be $53,687 for one earner, $70,000 for a family of two, $76,386 for a family of three, and $94,269 for a family of four. $9,900 is added for each additional person.
- Chapter 13 — The maximum amount of unsecured debt an individual may have to file Chapter 13 bankruptcy is being raised to $465,275 from $419,275. The maximum amount of secured debt will increase to $1,395,875 from $1,257,850.
- Retirement — The maximum aggregate value of assets a debtor can exempt from their individual retirement accounts will be increased to $1,512,350 from $1,362,800.
- Involuntary filing — Creditors are able to request that a debtor file bankruptcy. The aggregate claims amount required for a creditor to file involuntary Chapter 7 or Chapter 11 bankruptcy will increase to $18,600 from $16,750.
- Small business — The total debt amount in the definition of a small business debtor will be raised to $3,024,725 from $2,725,625.
Talk to an Experienced Bankruptcy Lawyer in North Carolina Today
Filing for bankruptcy can be one of the most challenging times of someone’s life. Bankruptcy changes can make it more difficult. The board-certified bankruptcy specialist attorneys at Sasser Law Firm have the experience and resources you need to make the best financial decisions for your situation.
If you have further questions about the new bankruptcy laws for 2022, call or contact us online today for a free consultation.
- About the Author
- Latest Posts
For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
