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?
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