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