Snooze Alert (but you really have to read this) – Bankruptcy Forms and Various Dollar Amounts Changing on April 1
March 29, 2016
Authored by: Mark Duedall and Mark Stingley
On April 1, a bevy of dollar amounts set forth in the Bankruptcy Code will change. Some of these are quite important to substantive relief, and others are quite important to making sure you don’t look bad in front of the client or your favorite (least favorite?) judge. We have Section 104 of the Bankruptcy Code to thank for this malpractice-inducing enterprise, which we enjoy every three years. See 11 U.S.C. § 104 (a) (“On April 1, 1998, and at each 3-year interval ending on April 1 thereafter, each dollar amount in effect under sections . . . shall be adjusted . . . .”).
At some point in the careers of the contributors to The Bankruptcy Cave, we would love to speak to the legislative scribes who meticulously cross-referenced all of BAPCPA’s new dollar figures to Section 104, but still managed to give us the hanging paragraph of Section 1325 (see the oldie but goodie by our good friend Steve Jakubowksi, one of the original bankruptcy bloggers, right here), and also possibly eliminated the absolute priority rule from individual Chapter 11 cases, as our Bryan Cave colleagues have written. (On that point, see also the great recent post on absolute priority in individual chapter 11s by our friends at Stone & Baxter, at the Plan Proponent blog.) But let us not digress or unduly criticize, that is not why you are here today.
The helpful souls from the Federal Register published a super-handy list (including a chart!) of all Bankruptcy Code dollar figures that are changing on April 1 pursuant to Section 104. You can see it here.
In addition, these revised dollar amounts create changes in the corresponding bankruptcy forms. Here is a great link, including to pdfs of the revised forms.
Like we said, this is a snoozer, but kind of important.
–Your friends at the Bankruptcy Cave.