Federal Bankruptcy Exemptions and Other Dollar Amounts Have Changed

On April 1, 2010, the bankruptcy figures used by the federal government will be adjusted for inflation. This means not only that the federal bankruptcy exemptions -- which determine how much property you get to keep if you file for Chapter 7 bankruptcy -- will increase, but also that the other dollar amounts appearing in the federal bankruptcy law will change.

Here are a few of the changes:

• Debt limits for using Chapter 13 will increase: Filers may now have up to $1,081,400 in secured debt and up to $360,475 in unsecured debt. (The previous limits were $1,010,650 and $336,900, respectively.) (For more information, see Nolo's article Are You Eligible for Chapter 13 Bankruptcy?)
• The federal homestead exemption will increase from $20,200 to $21,625.
• The federal exemption for vehicles will increase from $3,225 to $3,450.
• The limits used in the "means test" to determine eligibility to use Chapter 7 will increase: Filers who have less than $7,025 in disposable income will now pass the means test (the previous threshold was $6,575), and those who have more than $11,725 (previously 10,950) in disposable income will not be able to use Chapter 7. (For more on the means test, see Nolo's article The Means Test: Is Your Income Low Enough for Chapter 7 Bankruptcy?)

Other amounts have changed as well. To see the complete list, see the notice from the Federal Register, which can be found on the website of the Government Printing Office.