Moving Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2022

An official notice from the Judicial Conference of the United States was just published announcing that certain dollar amounts in the Bankruptcy Code will be increased a larger than usual 10.973% this time for new cases filed on or after April 1, 2022. Follow this link for the Federal Register page with a chart listing all of the updated dollar amounts. Among the most meaningful increases for Chapter 11 and other business bankruptcy cases:

• The employee compensation and employee benefit plan contribution priorities under Sections 507(a)(4) and 507(a)(5) both increase to $15,150 from $13,650;
• The consumer deposit priority under Section 507(a)(7) rises to $3,350 from $3,025;
• The total amount of claims required to file an involuntary petition rises to $18,600 from $16,750;