2025-02207NoticeWallet

Bankruptcy Dollar Limits Get Inflation Bump Starting April 2025

Published Date: 2/4/2025

Notice

Summary

Starting April 1, 2025, key dollar amounts used in bankruptcy cases will go up to keep pace with inflation. This means people and businesses dealing with bankruptcy will see updated financial limits and thresholds, making the rules fairer and more current. These changes affect many parts of bankruptcy law and official forms, so get ready for the new numbers!

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Nationwide Bankruptcy Dollar Updates

Starting April 1, 2025, many dollar amounts in federal bankruptcy law are increased across multiple sections to reflect inflation; the adjustments reflect a 13.2004% increase rounded to the nearest $25. The change applies only to cases commenced on or after April 1, 2025; cases started before that date are not affected.

Higher Debt Thresholds and Eligibility Limits

Key statutory debt thresholds increase on April 1, 2025—for example, the amount listed in 11 U.S.C. 101(3) rises from $226,850 to $256,800, and figures in 11 U.S.C. 109(e) rise from $465,275 to $526,700 and from $1,395,875 to $1,580,125. If you or your business have debts near these numbers, the numeric thresholds that apply in bankruptcy law will be higher after April 1, 2025.

Increased Exemption and Priority Amounts

Several exemption and priority claim dollar amounts increase on April 1, 2025—for example, 11 U.S.C. 522(d) paragraph (1) goes from $27,900 to $31,575; paragraph (2) from $4,450 to $5,025; and 11 U.S.C. 507(a) paragraph (4) rises from $15,150 to $17,150. These statutory claim and exemption numbers listed in the notice are updated to the new dollar amounts shown in the Federal Register table.

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Key Dates

Published Date
Effective Date
2/4/2025
4/1/2025

Department and Agencies

Department
Independent Agency
Agency
Judicial Conference of the United States
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