11 U.S.C. § 104

Current through P.L. 118-66 (published on www.congress.gov on 07/02/2024)
Section 104 - Adjustment of dollar amounts
(a) On April 1, 1998, and at each 3-year interval ending on April 1 thereafter, each dollar amount in effect under sections 101(3), 101(18), 101(19A), 101(51D), 109(e), 303(b), 507(a), 522(d), 522(f)(3) and 522(f)(4), 522(n), 522(p), 522(q), 523(a)(2)(C), 541(b), 547(c)(9), 707(b), 1182(1), 1322(d), 1325(b),and 1326(b)(3) of this title and section 1409(b) of title 28 immediately before such April 1 shall be adjusted-
(1) to reflect the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent 3-year period ending immediately before January 1 preceding such April 1, and
(2) to round to the nearest $25 the dollar amount that represents such change.
(b) Not later than March 1, 1998, and at each 3-year interval ending on March 1 thereafter, the Judicial Conference of the United States shall publish in the Federal Register the dollar amounts that will become effective on such April 1 under sections 101(3), 101(18), 101(19A), 101(51D), 109(e), 303(b), 507(a), 522(d), 522(f)(3) and 522(f)(4), 522(n), 522(p), 522(q), 523(a)(2)(C), 541(b), 547(c)(9), 707(b), 1182(1), 1322(d), 1325(b),and 1326(b)(3) of this title and section 1409(b) of title 28.
(c) Adjustments made in accordance with subsection (a) shall not apply with respect to cases commenced before the date of such adjustments.

11 U.S.C. § 104

Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2555; Pub. L. 103-394, title I, §108(e), Oct. 22, 1994, 108 Stat. 4112; Pub. L. 109-8, title I, §102(j), title II, §§224(e)(2), 226(b), title III, §322(b), title IV, §432(c), title X, §1002, title XII, §1202, Apr. 20, 2005, 119 Stat. 35, 65, 67, 97, 110, 186, 193; Pub. L. 110-406, §7, Oct. 13, 2008, 122 Stat. 4293; Pub. L. 117-151, §2(b), June 21, 2022, 136 Stat. 1298.

HISTORICAL AND REVISION NOTES

LEGISLATIVE STATEMENTSSection 104 represents a compromise between the House bill and the Senate amendment with respect to the adjustment of dollar amounts in title 11. The House amendment authorizes the Judicial Conference of the United States to transmit a recommendation for the uniform percentage of adjustment for each dollar amount in title 11 and in 28 U.S.C. 1930 to the Congress and to the President before May 1, 1985, and before May 1 of every sixth year thereafter. The requirement in the House bill that each such recommendation be based only on any change in the cost-of-living increase during the period immediately preceding the recommendation is deleted.

SENATE REPORT NO. 95-989This section requires that the Director of the Administrative Office of the U. S. Courts report to Congress and the President before Oct. 1, 1985, and before May 1 every 6 years thereafter a recommendation for adjustment in dollar amounts found in this title. The Committee feels that regular adjustment of the dollar amounts by the Director will conserve congressional time and yet assure that the relative dollar amounts used in the bill are maintained. Changes in the cost of living should be a significant, but not necessarily the only, factor considered by the Director. The fact that there has been an increase in the cost of living does not necessarily mean that an adjustment of dollar amounts would be needed or warranted.

HOUSE REPORT NO. 95-595This section requires the Judicial Conference to report to the Congress every four years after the effective date of the bankruptcy code any changes that have occurred in the cost of living during the preceding four years, and the appropriate adjustments to the dollar amounts in the bill. The dollar amounts are found primarily in the exemption section ( 11 U.S.C. 522 ), the wage priority ( 11 U.S.C. 507 ), and the eligibility for chapter 13 ( 11 U.S.C. 109 ). This section requires that the Conference recommend uniform percentage changes in these amounts based solely on cost of living changes. The dollar amounts in the bill would not change on that recommendation, absent Congressional veto. Instead, Congress is required to take affirmative action, by passing a law amending the appropriate section, if it wishes to accomplish the change. If the Judicial Conference has policy recommendations concerning the appropriate dollar amounts in the bankruptcy code based other than on cost of living considerations there are adequate channels through which it may communicate its views. This section is solely for the housekeeping function of maintaining the dollar amounts in the code at fairly constant real dollar levels.

EDITORIAL NOTES

AMENDMENTS2022-Subsec. (a). Pub. L. 117-151, §2(b)(1), inserted "1182(1)," after "707(b)," in introductory provisions.Subsec. (b). Pub. L. 117-151, §2(b)(2), inserted "1182(1)," after "707(b),". 2008- Pub. L. 110-406 redesignated subsec. (b)(1) as (a), subpars. (A) and (B) of subsec. (b)(1) as pars. (1) and (2), respectively, of subsec. (a), and pars. (2) and (3) of subsec. (b) as subsecs. (b) and (c), respectively, substituted "subsection (a)" for "paragraph (1)" in subsec. (c), and struck out former subsec. (a) which read as follows: "The Judicial Conference of the United States shall transmit to the Congress and to the President before May 1, 1985, and before May 1 of every sixth year after May 1, 1985, a recommendation for the uniform percentage adjustment of each dollar amount in this title and in section 1930 of title 28." 2005-Subsec. (b)(1). Pub. L. 109-8, §1202(1)-(4), in introductory provisions, inserted "101(19A)," after "101(18),", "522(f)(3) and 522(f)(4)," after "522(d),", and "541(b), 547(c)(9)," after "523(a)(2)(C)," and substituted "1322(d), 1325(b), and 1326(b)(3) of this title and section 1409(b) of title 28" for "and 1325(b)(3)". Pub. L. 109-8, §1002, inserted "101(18)," after "101(3)," in introductory provisions. Pub. L. 109-8, §432(c), inserted "101(51D)," after "101(3)," in introductory provisions. Pub. L. 109-8, §322(b), inserted "522(p), 522(q)," after "522(n)," in introductory provisions. Pub. L. 109-8, §226(b), inserted "101(3)," after "sections" in introductory provisions. Pub. L. 109-8, §224(e)(2), inserted "522(n)," after "522(d)," in introductory provisions. Pub. L. 109-8, §102(j), substituted "523(a)(2)(C), 707(b), and 1325(b)(3)" for "and 523(a)(2)(C)" in introductory provisions.Subsec. (b)(2). Pub. L. 109-8, §1202(1)-(3), (5), inserted "101(19A)," after "101(18),", "522(f)(3) and 522(f)(4)," after "522(d),", and "541(b), 547(c)(9)," after "523(a)(2)(C)," and substituted "1322(d), 1325(b), and 1326(b)(3) of this title and section 1409(b) of title 28" for "and 1325(b)(3) of this title". Pub. L. 109-8, §1002, inserted "101(18)," after "101(3),". Pub. L. 109-8, §432(c), inserted "101(51D)," after "101(3),". Pub. L. 109-8, §322(b), inserted "522(p), 522(q)," after "522(n),". Pub. L. 109-8, §226(b), inserted "101(3)," after "sections". Pub. L. 109-8, §224(e)(2), inserted "522(n)," after "522(d),". Pub. L. 109-8, §102(j), substituted "523(a)(2)(C), 707(b), and 1325(b)(3)" for "and 523(a)(2)(C)".1994- Pub. L. 103-394 designated existing provisions as subsec. (a) and added subsec. (b).

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATE OF 2022 AMENDMENT Pub. L. 117-151, §2(h)(1), June 21, 2022, 136 Stat. 1299, provided that: "Subsections (b) and (c) [amending this section and section 109 of this title] and the amendments made by subsections (b) and (c) shall take effect on the date of enactment of this Act [June 21, 2022]."

EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-8 effective 180 days after Apr. 20, 2005, with amendments by sections 102(j), 224(e)(2), 226(b), 432(c), 1002, and 1202 of Pub. L. 109-8 not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, and amendment by section 322(b) of Pub. L. 109-8 applicable with respect to cases commenced under this title on or after Apr. 20, 2005, see section 1501 of Pub. L. 109-8 set out as a note under section 101 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103-394 set out as a note under section 101 of this title.

COURT RULES AND JUDICIAL DOCUMENTS

ADJUSTMENT OF DOLLAR AMOUNTSBy notice dated Jan. 31, 2022, 87 F.R. 6625, the Judicial Conference of the United States adjusted the dollar amounts in provisions specified in subsec. (a) of this section, effective Apr. 1, 2022, as follows:

28 U.S.C.Dollar amount to be adjustedNew (adjusted) dollar amount 1
Section 1409(b)-a trustee may commence a proceeding arising in or related to a case to recover
(1)-money judgment of or property worth less than $1,375 $1,525.
(2)-a consumer debt less than $20,450 $22,700.
(3)-a non-consumer debt against a non-insider less than $25,000 $27,750.

11 U.S.C.Dollar amount to be adjustedNew (adjusted) dollar amount 1
Section 101(3)-definition of assisted person $204,425 $226,850.
Section 101(18)-definition of family farmer $10,000,000 (each time it appears) $11,097,350 (each time it appears).
Section 101(19A)-definition of family fisherman $2,044,225 (each time it appears) $2,268,550 (each time it appears).
Section 101(51D)-definition of small business debtor $2,725,625 (each time it appears) $3,024,725 (each time it appears).
Section 109(e)-debt limits for individual filing bankruptcy under chapter 13 $419,275 (each time it appears)$1,257,850 (each time it appears) $465,275 (each time it appears)$1,395,875 (each time it appears).
Section 303(b)-minimum aggregate claims needed for the commencement of an involuntary chapter 7 or 11 petition $16,750 (each time it appears) $18,600 (each time it appears).
Section 507(a)-priority expenses and claims:
(1)-in paragraph (4) $13,650 $15,150.
(2)-in paragraph (5)(B)(i) $13,650 $15,150.
(3)-in paragraph (6)(B) $6,725 $7,475.
(4)-in paragraph (7) $3,025 $3,350.
Section 522(d)-value of property exemptions allowed to the debtor:
(1)-in paragraph (1) $25,150 $27,900.
(2)-in paragraph (2) $4,000 $4,450.
(3)-in paragraph (3) $625$13,400 $700$14,875.
(4)-in paragraph (4) $1,700 $1,875.
(5)-in paragraph (5) $1,325$12,575 $1,475$13,950.
(6)-in paragraph (6) $2,525 $2,800.
(7)-in paragraph (8) $13,400 $14,875.
(8)-in paragraph (11)(D) $25,150 $27,900.
Section 522(f)(3)-exception to lien avoidance under certain state laws $6,825 $7,575.
Section 522(f)(4)-items excluded from definition of household goods for lien avoidance purposes $725 (each time it appears) $800 (each time it appears).
Section 522(n)-maximum aggregate value of assets in individual retirement accounts exempted $1,362,800 $1,512,350.
Section 522(p)-state homestead exemption, limit for interest acquired 1215 days before filing $170,350 $189,050.
Section 522(q)-state homestead exemption, limit under particular circumstances $170,350 $189,050.
Section 523(a)(2)(C)-exceptions to discharge-presumption of nondischargeability:
(1)-in paragraph (i)(I)-consumer debts for luxury goods or services incurred [LESS THAN] 90 days before filing owed to a single creditor in the aggregate $725 $800.
(2)-in paragraph (i)(II)-certain cash advances obtained [LESS THAN] 70 days before filing, in the aggregate $1,000 $1,100.
Section 541(b)-certain property of the estate exclusion limits $6,825 (each time it appears) $7,575 (each time it appears).
Section 547(c)(9)-minimum preference avoidance value in cases with primarily non-consumer debts $6,825 $7,575.
Section 707(b)-dismissal of a chapter 7 case or conversion to chapter 11 or 13 (means test):
(1)-in paragraph (2)(A)(i)(I) $8,175 $9,075.
(2)-in paragraph (2)(A)(i)(II) $13,650 $15,150.
(3)-in paragraph (2)(A)(ii)(IV) $2,050 $2,275.
(4)-in paragraph (2)(B)(iv)(I) $8,175 $9,075.
(5)-in paragraph (2)(B)(iv)(II) $13,650 $15,150.
(6)-in paragraph (5)(B) $1,375 $1,525.
(7)-in paragraph (6)(C) $750 $825.
(8)-in paragraph (7)(A)(iii) $750 $825.
Section 1322(d)-length of chapter 13 plan, current monthly income, 4+ household $750 (each time it appears) $825 (each time it appears).
Section 1325(b)-confirmation of chapter 13 plan, current monthly income, 4+ household $750 (each time it appears) $825 (each time it appears).
Section 1326(b)(3)-payments to former chapter 7 trustee $25 $25.
1 The New (Adjusted) Dollar Amounts reflect a 10.97347880254584 percent increase, rounded to the nearest $25.Similar notices by the Judicial Conference of the United States adjusting the dollar amounts in provisions specified in subsec. (a) of this section were contained in the following: Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019. Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016. Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013. Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010. Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007. Feb. 18, 2004, 69 F.R. 8482, effective Apr. 1, 2004. Feb. 13, 2001, 66 F.R. 10910, effective Apr. 1, 2001. Feb. 3, 1998, 63 F.R. 7179, effective Apr. 1, 1998.

assisted person
The term "assisted person" means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.1
consumer debt
The term "consumer debt" means debt incurred by an individual primarily for a personal, family, or household purpose.
debt
The term "debt" means liability on a claim.(12A) The term "debt relief agency" means any person who provides any bankruptcy assistance to an assisted person in return for the payment of money or other valuable consideration, or who is a bankruptcy petition preparer under section 110, but does not include-(A) any person who is an officer, director, employee, or agent of a person who provides such assistance or of the bankruptcy petition preparer;(B) a nonprofit organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986;(C) a creditor of such assisted person, to the extent that the creditor is assisting such assisted person to restructure any debt owed by such assisted person to the creditor;(D) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) or any Federal credit union or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act), or any affiliate or subsidiary of such depository institution or credit union; or(E) an author, publisher, distributor, or seller of works subject to copyright protection under title 17, when acting in such capacity.
debtor
The term "debtor" means person or municipality concerning which a case under this title has been commenced.(13A) The term "debtor's principal residence"-(A) means a residential structure if used as the principal residence by the debtor, including incidental property, without regard to whether that structure is attached to real property; and(B) includes an individual condominium or cooperative unit, a mobile or manufactured home, or trailer if used as the principal residence by the debtor.
family farmer
The term "family farmer" means-(A) individual or individual and spouse engaged in a farming operation whose aggregate debts do not exceed $10,000,000 1 and not less than 50 percent of whose aggregate noncontingent, liquidated debts (excluding a debt for the principal residence of such individual or such individual and spouse unless such debt arises out of a farming operation), on the date the case is filed, arise out of a farming operation owned or operated by such individual or such individual and spouse, and such individual or such individual and spouse receive from such farming operation more than 50 percent of such individual's or such individual and spouse's gross income for-(i) the taxable year preceding; or(ii) each of the 2d and 3d taxable years preceding;the taxable year in which the case concerning such individual or such individual and spouse was filed; or(B) corporation or partnership in which more than 50 percent of the outstanding stock or equity is held by one family, or by one family and the relatives of the members of such family, and such family or such relatives conduct the farming operation, and(i) more than 80 percent of the value of its assets consists of assets related to the farming operation;(ii) its aggregate debts do not exceed $10,000,000 1 and not less than 50 percent of its aggregate noncontingent, liquidated debts (excluding a debt for one dwelling which is owned by such corporation or partnership and which a shareholder or partner maintains as a principal residence, unless such debt arises out of a farming operation), on the date the case is filed, arise out of the farming operation owned or operated by such corporation or such partnership; and(iii) if such corporation issues stock, such stock is not publicly traded.
family fisherman
The term "family fisherman" means-(A) an individual or individual and spouse engaged in a commercial fishing operation-(i) whose aggregate debts do not exceed $1,500,000 1 and not less than 80 percent of whose aggregate noncontingent, liquidated debts (excluding a debt for the principal residence of such individual or such individual and spouse, unless such debt arises out of a commercial fishing operation), on the date the case is filed, arise out of a commercial fishing operation owned or operated by such individual or such individual and spouse; and(ii) who receive from such commercial fishing operation more than 50 percent of such individual's or such individual's and spouse's gross income for the taxable year preceding the taxable year in which the case concerning such individual or such individual and spouse was filed; or(B) a corporation or partnership-(i) in which more than 50 percent of the outstanding stock or equity is held by-(I) 1 family that conducts the commercial fishing operation; or(II) 1 family and the relatives of the members of such family, and such family or such relatives conduct the commercial fishing operation; and(ii)(I) more than 80 percent of the value of its assets consists of assets related to the commercial fishing operation;(II) its aggregate debts do not exceed $1,500,000 1 and not less than 80 percent of its aggregate noncontingent, liquidated debts (excluding a debt for 1 dwelling which is owned by such corporation or partnership and which a shareholder or partner maintains as a principal residence, unless such debt arises out of a commercial fishing operation), on the date the case is filed, arise out of a commercial fishing operation owned or operated by such corporation or such partnership; and(III) if such corporation issues stock, such stock is not publicly traded.
insider
The term "insider" includes-(A) if the debtor is an individual-(i) relative of the debtor or of a general partner of the debtor;(ii) partnership in which the debtor is a general partner;(iii) general partner of the debtor; or(iv) corporation of which the debtor is a director, officer, or person in control;(B) if the debtor is a corporation-(i) director of the debtor;(ii) officer of the debtor;(iii) person in control of the debtor;(iv) partnership in which the debtor is a general partner;(v) general partner of the debtor; or(vi) relative of a general partner, director, officer, or person in control of the debtor;(C) if the debtor is a partnership-(i) general partner in the debtor;(ii) relative of a general partner in, general partner of, or person in control of the debtor;(iii) partnership in which the debtor is a general partner;(iv) general partner of the debtor; or(v) person in control of the debtor;(D) if the debtor is a municipality, elected official of the debtor or relative of an elected official of the debtor;(E) affiliate, or insider of an affiliate as if such affiliate were the debtor; and(F) managing agent of the debtor.
lien
The term "lien" means charge against or interest in property to secure payment of a debt or performance of an obligation.
petition
The term "petition" means petition filed under section 301, 302, 303 and 3 1504 of this title, as the case may be, commencing a case under this title.(42A) The term "production payment" means a term overriding royalty satisfiable in cash or in kind-(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and(B) from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs.
relative
The term "relative" means individual related by affinity or consanguinity within the third degree as determined by the common law, or individual in a step or adoptive relationship within such third degree.