Notice Regarding Automatic Adjustment of Certain Dollar Amounts in the Bankruptcy Code and Official Bankruptcy Forms

Release Date: 
Monday, March 26, 2007

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ADMINISTRATIVE OFFICE OF THE
UNITED STATES COURTS
WASHINGTON, D.C. 20544

March 26, 2007

MEMORANDUM

To: Judges, United States Bankruptcy Courts
      Clerks, United States Bankruptcy Courts
       Bankruptcy Administrators

From: James C. Duff

RE: AUTOMATIC ADJUSTMENT OF CERTAIN DOLLAR AMOUNTS IN THE
BANKRUPTCY CODE AND OFFICIAL BANKRUPTCY FORMS (INFORMATION)

On April 1, 2007, automatic adjustments to the dollar amounts stated in various
provisions of the Bankruptcy Code and one provision of Title 28 of the United States Code will
become effective. The amended dollar amounts will apply to cases filed on or after April 1,
2007.

The amended dollar amounts will affect, among other matters, the eligibility of a debtor
to file under chapters 12 and 13 of the Bankruptcy Code, certain maximum values of property
that a debtor may claim as exempt, the maximum amount of certain claims entitled to priority,
the calculation of the “means test” for chapter 7 debtors, the duration of a chapter 13 plan, the
definition of a small business debtor, the minimum aggregate value of claims needed to
commence an involuntary bankruptcy, the value of “luxury goods and services” deemed to be
nondischargeable, and the location where the trustee may commence certain proceedings to
recover a money judgment or property. In the Bankruptcy Reform Act of 1994, as amended by
the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Congress provided for
the automatic adjustment of these dollar amounts at three-year intervals. The relevant provisions
are codified in 11 U.S.C. § 104(b).

The adjustments reflect the change in the Consumer Price Index for All Urban
Consumers published by the United States Department of Labor for the three-year period ending
December 31, 2006, and rounded to the nearest $25. Use of this formula to adjust specified
dollar amounts in the Bankruptcy Code is prescribed by 11 U.S.C. § 104(b)(1). On February 14,
2007, the Judicial Conference published the revised dollar amounts in volume 72, number 30, of

the Federal Register, at page 7082, as required under 11 U.S.C. § 104(b)(2).1 The next threeyear
automatic adjustment of these dollar amounts will be published before March 1, 2010, and
take effect April 1, 2010. Attached is a chart showing the affected sections of the Bankruptcy
Code and Title 28 and both the current and the revised dollar amounts in those sections.

Seven of the Official Bankruptcy Forms contain references to several of the affected
dollar amounts.

• Official Form 1, Voluntary Petition
• Official Form 6C, Schedule of Property Claimed as Exempt
• Official Form 6E, Schedule of Creditors Holding Claims Entitled to Priority
• Official Form 7, Statement of Financial Affairs
• Official Form 10, Proof of Claim
• Official Form 22A, Statement of Current Monthly Income and Means Test
Calculation (Chapter 7)
• Official Form 22C, Statement of Current Monthly Income and Calculation of
Commitment Period and Disposable Income (Chapter 13)

These forms will be amended April 1, 2007, and will apply to cases filed on or after that
date. Excerpts of the amended forms with the changes indicated are also attached. The revised
forms incorporating the changes will be posted on the bankruptcy forms pending amendment
page of the Judiciary’s website at http://www.uscourts.gov/bankform/index.html.

Questions concerning the revised dollar amounts in the Bankruptcy Code, Title 28, and
Official Bankruptcy Forms may be directed to Francis F. Szczebak, Chief, Bankruptcy Judges
Division, at (202) 502-1900 or via e-mail at Frank Szczebak/DCA/AO/USCOURTS.

Attachments

cc: Chief Judges, United States Courts of Appeals
Chief Judges, United States District Courts