2019 Changes to Priority Bankruptcy Claim Amounts

The maximum amount allowed for priority claims increases on April 1, 2019.

Every three years, bankruptcy code figures are subject to change. The maximum amount a creditor can recover on certain priority claims will increase as follows:

  • Wages, salaries, and commissions. The amount a qualifying employee can claim for unpaid earnings after the closure of a debtor’s business increases from $12,850 to $13,650. (11 U.S.C. § 507(a)(4))
  • Employee benefit plans. The amount an employee can recover for contributions to a benefit plan increases from $12,850 to $13,650. (11 U.S.C. § 507(a)(5)(B)(i))
  • Fish sold to a storage or processing facility. The amount a fisherman can claim for an unpaid fish purchase increases from $6,325 to $6,725. (11 U.S.C. § 507(a)(6)(B))
  • Lease, rental, and purchase deposits. The amount a creditor can claim for a deposit put down on an undelivered personal or household product or service increases from $2,850 to $3,025. (11 U.S.C. § 507(a)(7))

The new figures apply to cases filed on after April 1, 2019.

You’ll find more information in the following articles:

Effective date: April 1, 2019