What is bankruptcy? Section 104 of the bankruptcy code

What is bankruptcy?

Section 104 – Adjustment of Dollar Amounts

Automatically, from April 1, 1998, and at three-year intervals thereafter, taking effect on April 1, almost each dollar amount in the bankruptcy code will be adjusted . The adjustments affect, among other matters:

• the eligibility of a debtor to file under chapters 12 and 13 of the Bankruptcy Code

• certain maximum values of property that a debtor may claim as exempt

• the maximum amount of certain claims entitled to priority

• the calculation of the "means test" for chapter 7 debtors

• the duration of a chapter 13 plan

• the definition of a small business debtor

• the minimum aggregate value of claims needed to commence an involuntary

• bankruptcy

• the value of "luxury goods and services" deemed to be nondischargeable

• where the trustee may commence certain proceedings to recover a money

• judgment or property"

Refer to the bankruptcy code to see the specific sections. The last adjustment when this book was written took effect on April 1, 2013, the next adjustment will take effect on April 1, 2016. The adjustments reflect the change in the Consumer Price Index for All Urban Consumers published by the United States Department of Labor for the three-year period ending

December 31, 2012, and rounded to the nearest $25. The adjustments must be published in the Federal Register by the Judicial Conference of the United States

For more information on bankruptcy in Houston, contact the Rashid Law Firm for a free consultation with a Houston bankruptcy lawyer at 832-209-8833.