Dollar Amount Adjustments in the U.S. Bankruptcy Code Effective April 1, 2022
Our experienced Tucson bankruptcy attorney, Eric Ollason, provides the skill and guidance our Arizona clients need to pursue a fresh start from their financial challenges.
When our residents are seeking answers to their most pressing bankruptcy questions, so they can address their overall financial concerns, our compassionate Arizona bankruptcy lawyer can help each person, couple, and family effectively navigate both state and federal bankruptcy laws.
This is important because once our clients have all the facts, they can make informed decisions about their financial futures.
The Federal Registry reported a significant change in the federal bankruptcy law allowing for an increase in qualifying dollar amounts that took effect April 1, 2022.
Here is what you need to know about dollar amounts and limitations that could affect your filing.
What Changes Were Made to the U.S. Bankruptcy Beginning April 1, 2022?
The U.S. Bankruptcy Code requires the qualifying dollar amounts and limitations listed therein to be adjusted every three years to account for inflation.
Effective April 1, 2022, the amounts increased by 11%.
The most notable changes to the Code included:
Changes to the Median Family Income
When completing the bankruptcy means test forms, debtors must use the latest figures to determine their eligibility to file for Chapter 7 or establish payment plans for Chapter 13.
The updated U.S. Census Bureau median family incomes for Arizona are:
- One Earner: $58,462
- Two People $73,262
- Family of Three: $79,110
- Family of Four: $89,741
Additional changes that went into effect on April 1, 2022, include:
- Maximum Amount of Unsecured Debt to File Chapter 13 Bankruptcy: $465,275
- Maximum Amount of Unsecured Debt to File Chapter 13 Bankruptcy: $1,395,875
- Maximum Value of Assets Exempt from Individual Retirement Accounts: $1,512,350
- Small Business Total Debt: $3,024,725
Filing for bankruptcy can be extremely challenging, especially if you are unsure about how our Arizona bankruptcy laws and the federal codes apply to your unique financial circumstances.
We can help.
Contact Our Skilled Arizona Bankruptcy Attorney Today to Schedule a Free Assessment
If you have questions about the new bankruptcy laws for 2022, and how they impact your eligibility to file for bankruptcy in Arizona, Contact our experienced bankruptcy attorney in Tucson, Eric Ollason, to learn more about your legal rights and options to start fresh by calling (520) 791-2707 to schedule a free consultation today.