Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 1–GENERAL PROVISIONS

Sec. 104. Adjustment of dollar amounts

    (a) The Judicial Conference of the United States shall transmit to 
the Congress and to the President before May 1, 1985, and before May 1 
of every sixth year after May 1, 1985, a recommendation for the uniform 
percentage adjustment of each dollar amount in this title and in section 
1930 of title 28.
    (b)(1) On April 1, 1998, and at each 3-year interval ending on April 
1 thereafter, each dollar amount in effect under sections 109(e), 
303(b), 507(a), 522(d), and 523(a)(2)(C) immediately before such April 1 
shall be adjusted--
        (A) to reflect the change in the Consumer Price Index for All 
    Urban Consumers, published by the Department of Labor, for the most 
    recent 3-year period ending immediately before January 1 preceding 
    such April 1, and
        (B) to round to the nearest $25 the dollar amount that 
    represents such change.

    (2) Not later than March 1, 1998, and at each 3-year interval ending 
on March 1 thereafter, the Judicial Conference of the United States 
shall publish in the Federal Register the dollar amounts that will 
become effective on such April 1 under sections 109(e), 303(b), 507(a), 
522(d), and 523(a)(2)(C) of this title.
    (3) Adjustments made in accordance with paragraph (1) shall not 
apply with respect to cases commenced before the date of such 
adjustments.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2555; Pub. L. 103-394, title I, 
Sec. 108(e), Oct. 22, 1994, 108 Stat. 4112.)


                      Historical and Revision Notes

                         legislative statements

    Section 104 represents a compromise between the House bill and the 
Senate amendment with respect to the adjustment of dollar amounts in 
title 11. The House amendment authorizes the Judicial Conference of the 
United States to transmit a recommendation for the uniform percentage of 
adjustment for each dollar amount in title 11 and in 28 U.S.C. 1930 to 
the Congress and to the President before May 1, 1985, and before May 1 
of every sixth year thereafter. The requirement in the House bill that 
each such recommendation be based only on any change in the cost-of-
living increase during the period immediately preceding the 
recommendation is deleted.


                        senate report no. 95-989

    This section requires that the Director of the Administrative Office 
of the U. S. Courts report to Congress and the President before Oct. 1, 
1985, and before May 1 every 6 years thereafter a recommendation for 
adjustment in dollar amounts found in this title. The Committee feels 
that regular adjustment of the dollar amounts by the Director will 
conserve congressional time and yet assure that the relative dollar 
amounts used in the bill are maintained. Changes in the cost of living 
should be a significant, but not necessarily the only, factor considered 
by the Director. The fact that there has been an increase in the cost of 
living does not necessarily mean that an adjustment of dollar amounts 
would be needed or warranted.


                         house report no. 95-595

    This section requires the Judicial Conference to report to the 
Congress every four years after the effective date of the bankruptcy 
code any changes that have occurred in the cost of living during the 
preceding four years, and the appropriate adjustments to the dollar 
amounts in the bill. The dollar amounts are found primarily in the 
exemption section (11 U.S.C. 522), the wage priority (11 U.S.C. 507), 
and the eligibility for chapter 13 (11 U.S.C. 109). This section 
requires that the Conference recommend uniform percentage changes in 
these amounts based solely on cost of living changes. The dollar amounts 
in the bill would not change on that recommendation, absent 
Congressional veto. Instead, Congress is required to take affirmative 
action, by passing a law amending the appropriate section, if it wishes 
to accomplish the change.
    If the Judicial Conference has policy recommendations concerning the 
appropriate dollar amounts in the bankruptcy code based other than on 
cost of living considerations there are adequate channels through which 
it may communicate its views. This section is solely for the 
housekeeping function of maintaining the dollar amounts in the code at 
fairly constant real dollar levels.


                               Amendments

    1994--Pub. L. 103-394 designated existing provisions as subsec. (a) 
and added subsec. (b).


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under 
section 101 of this title.


                      Adjustment of Dollar Amounts

    By notice dated Feb. 3, 1998, 63 F.R. 7179, the Judicial Conference 
of the United States adjusted the dollar amounts in provisions specified 
in subsec. (b) of this section, effective Apr. 1, 1998, as follows:

------------------------------------------------------------------------
                                   Dollar amount to     New (adjusted)
            11 U.S.C.                 be adjusted        dollar amount
------------------------------------------------------------------------
Section 109(e)--allowable debt    $250,000 (each      $269,250 (each
 limits for filing bankruptcy      time it appears).   time it appears).
 under Chapter 13.                750,000 (each time  807,750 (each time
                                   it appears).        it appears).
Section 303(b)--minimum
 aggregate claims needed for the
 commencement of an involuntary
 bankruptcy:
  (1)--in paragraph (1).........  10,000............  10,775.
  (2)--in paragraph (2).........  10,000............  10,775.
Section 507(a)--priority claims:
  (1)--in paragraph (3).........  4,000.............  4,300.
  (2)--in paragraph (4)(B)(i)...  4,000.............  4,300.
  (3)--in paragraph (5).........  4,000.............  4,300.
  (4)--in paragraph (6).........  1,800.............  1,950.
Section 522(d)--value of
 property exemptions allowed to
 the debtor:
  (1)--in paragraph (1).........  15,000............  16,150.
  (2)--in paragraph (2).........  2,400.............  2,575.
  (3)--in paragraph (3).........  400...............  425
                                  8,000.............  8,625.
  (4)--in paragraph (4).........  1,000.............  1,075.
  (5)--in paragraph (5).........  800...............  850
                                  7,500.............  8,075.
  (6)--in paragraph (6).........  1,500.............  1,625.
  (7)--in paragraph (8).........  8,000.............  8,625.
  (8)--in paragraph (11)(D).....  15,000............  16,150.
Section 523(a)(2)(C)--``luxury    1,000 (each time    1,075 (each time
 goods and services'' or cash      it appears).        it appears).
 advances obtained by the
 consumer debtor within 60 days
 before the filing of a
 bankruptcy petition, which are
 considered nondischargeable.
------------------------------------------------------------------------

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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software