Federal Bankruptcy Exemptions Adjusted For Inflation, April 1, 2013

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When Congress passed the 2005 bankruptcy law, it dictated that the limits set in the statute should be adjusted for inflation every three years. Adjustments were made in 2008 2010, and now in 2013. The new amounts to take effect April 1.

Some of the critical affected amounts:

  • Federal 11 USC 522(b) Exemption amounts
    • Homestead exemption raised from $21,625 to $22,975
    • Motor vehicle exemption raised from $3,450 to $3,675
    • Wild-card exemption raised from $10,825 to $11,500
    • Tools of trade exemption raised from $11,525 to $12,250
    • Limit on IRA exemption raised from $1,171,650 to $1,245,475
  • Debt Limits
    • Chapter 13 unsecured debt limit raised from $360,475 to $383,175
    • Chapter 13 secured debt limit raised from $1,081,400 to $1,149,525
  • State Homestead Exemption Limit for Recent Relocatees
    • Homestead exemption cap (for people who have recently moved to states with large homestead exemptions) raised from $146,450 to $155,675

Click here for a complete list of inflation adjusted amounts.

Related Link: Bankruptcy Exemptions In Your State

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