Federal Form Revisions
On June 21, 2022, the Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATC Act) became law. The Administrative Office of the United States Courts has issued Amendments to Official Forms 101 and 201 conforming to the BTATC Act.
The BTATC Act amends Section 1182(1) of the Bankruptcy Code to include the increased aggregate debt limit of $7.5 million in Subchapter V’s definition of a “debtor” and, upon sunset in two years from enactment, will revert and refer to the definition of a “small business debtor” in Section 101(51D) of the Bankruptcy Code. The BTATC Act also applies retroactively to all cases commenced under Chapter 11 on or after March 27, 2022 that remain pending as of the date of enactment.
The BTATC Act also provides that an individual is eligible to be a debtor under Chapter 13 if the individual owes noncontingent, liquidated debts of less than $2,750,000.00 as of the date of the petition. This provision also has a two-year sunset from enactment.
The CINcompass update available today contains the new Official Forms 101 and 201.
Exemptions
- District of Maryland
- Owner Occupied Residential Real Property Md. Code Ann., Cts. & Jud. Proc. § 11-504(f)(1)(i)(2) $25,150.00 to $27,900.00 – revised April 2022
- District of Minnesota
- Homestead (limited to 160 acres) Minn. Stat. § 510.01, § 510.02 increased from $450,000.00 to $480,000.00 – revised July 2022
- Homestead (used primarily for agriculture) Minn. Stat. § 510.01, § 510.02 increased from $1,125,000.00 to $1,200,000.00 – revised July 2022
- Household furniture, household appliances, consumer electronics, etc. Minn. Stat. § 550.37 subd. 4(b) increased from $11,250.00 to $11,700.00 – revised July 2022
- Wedding rings Minn. Stat. § 550.37 subd. 4(c) increased from $3,062.50 to $3,185.00 – revised July 2022
- Tools of the trade Minn. Stat. § 550.37 subd. 6 increased from $12,500.00 to $13,000.00 – revised July 2022
- Life insurance benefits Minn. Stat. § 550.37 subd. 10 increased from $50,000.00 to $52,000.00 – revised July 2022
- Additional dependent insurance benefits Minn. Stat. § 550.37 subd. 10 increased from $12,500.00 to $13,000.00 – revised July 2022
- Motor vehicle Minn. Stat. § 550.37 subd. 12a increased from $5,000.00 to $5,200.00 – revised July 2022
- Motor vehicle (modified for disability, provided modification cost at least $3,900.00) Minn. Stat. § 550.37 subd. 12a increased from $50,000.00 to $52,000.00 – revised July 2022
- Insurance policies Minn. Stat. § 550.37 subd. 23 increased from $10,000.00 to $10,400.00 – revised July 2022
- Employee benefits Minn. Stat. § 550.37 subd. 24 increased from $75,000.00 to $78,000.00 – revised July 2022