On April 1, 2025, certain dollar amounts listed in the Bankruptcy Code will be adjusted for inflation. These amounts adjust every three years. The last time the dollar amounts were adjusted in 2022, the adjustment amounted to a 10.973% increase. In light of the recent inflationary environment, the adjustment this year amounts to a 13.2% increase. All adjustments are rounded to the nearest $25 amount.
Some of the notable adjustments for corporate bankruptcies include:
- Increasing the threshold for a small business debtor (which currently also applies for eligibility as a SubChapter V debtor) to $3,424,000;
- Increasing the employee priority wage cap to $17,150;
- Increasing the 547(c)(9) de minimus transfer threshold to $8,575; and
- Increasing the minimum venue threshold set forth in 28 USC 1409(b) for claims against non-insiders of non-consumer debt to $31,425.
The full list of adjustments can be found in the Federal Register here: Federal Register: Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
