Due to COVID-19, all cases can be filed without coming into our office. Everything can be handled over the phone or through zoom.
You are also welcome to come into our office to review your situation in person!

US Bankruptcy Code: New 2019 Exemption Amounts


Federal Bankruptcy Exemptions Increased for 2019 

The Judicial Conference of the United States has just published the revised dollar amounts for Title 11 and Title 28 of the United States Code in the Federal Register. All dollar figures within the code have been adjusted by approximately.06% to account for the cost of living increases. For families and small businesses filing bankruptcy, this change means thousands of dollars in additional assets will be protected as of April 1st, 2019. This update is particularly important for personal retirement savings, which will see an exemption increase of nearly $80,000.

Updated Personal Exemptions

Effective 1 April 2019

  • 522(d)(1) Interest in a Personal Residence: Increased from $23,675 to $25,150.
  • 522(d)(2) Interest in a Motor Vehicle: Increased from $3,775 to $4,000.
  • 522(d)(3) Household goods, including furniture, appliances, and art: Increased from $600 per item and not more than $12,625 to $625 per item and not more than $13,400.
  • 522(d)(4) Jewelry: Increased from $1,600 to $1,700.
  • 522(d)(5) Aggregate Interest in Other Property: Increased from $1,250 and up to $11,850 of any unused 522(d)(1) exemption to $1,325 and $12,575.
  • 522(d)(6) Interest in tools, books, or other professional implements: Increased from $2,375 to $2,575.
  • 522(d)(8) Interest in life insurance, inherited estates, or unmatured life insurance: Increased from $12,625 to $13,400
  • 522(d)(11)(D) Compensation for bodily injury, not including pain and suffering or pecuniary damages: Increased from $23,675 to $25,150.
  • 522(n) Retirement Accounts: Increased from $1,283,025 to $1,362,800

This is a summary of important changes. The complete notice can be found in the Federal Register (84 FR 3488, pp. 3488-3489 ) or viewed online through the Government Publishing Office.

Exemptions Raised to Reflect the Consumer Price Index

Federal Legislation passed in 1994 stipulates that Title 11 US Code (better known as the Bankruptcy Code) be adjusted every three years starting from 1 April 1998 to reflect the Department of Labor’s Consumer Price Index. Per federal regulations, the exact figures are computed from inflation as reflected in the Consumer Price Index, then rounded to a multiple of $25.

Would you like to know more about bankruptcy exemptions and the possibility to protect your assets from creditors?

If you are in the Philadelphia area, call the Law Offices of David M. Offen at (215) 625-9600 to schedule a free consultation. With over 20 years of practice in Bankruptcy law, Mr. Offen has helped over 10,000 clients navigate bankruptcy.  

He has filed thousands of Chapter 7 cases as well as Chapter 13 cases and has discharged over $100,000,000 in debt. He can answer your questions and help you find the best path to get free of debt.

Call today to get the right answers to your financial questions. He will advise you if Bankruptcy is best for you or if it is not your best move.

Remember that knowledge is power. The more you know how to protect yourself from creditors, the better off you will be able to get your financial situation under control.

Call Now Button