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Virginia Bankruptcy Definitions & Tips:
A few of the more common words and phrases used by the Virginia bankruptcy courts are included in following list. Be aware of
variations between common usage, as compared to legal definitions derived from statutes, case interpretations,
and local customs.
Since early in the 1990's, lobbies representing financial institutions promoted restrictions on individual
rights to file. Also, a common feature promoted by various "Abuse Prevention Acts" is the reduction and/or
elimination of judicial discretion. Currently, judges may balance the needs of all parties in interest. The
administrative branch enthusiastically endorses these changes.
On March 5, 2004 the Virginia Bankruptcy Courts adopted newly adjusted dollar amounts which apply throughout
the Code. The changes became effective April1, 2004. The adjusted amounts affect the values throughout carious
Code sections, including the eligibility requirement for debtors who file Chapter 13, the value of claims which
the Code treats as a priority claim, the amount of creditor claims need to instigate an involuntary petition,
and the amount of luxury goods and services which may be considered nondischargeable if acquired within 30 days
of filing. These changes to Virginia bankruptcy law were based on the Consumer Price Index published by the US
Dept. of Labor, and increase values to reflect rising prices. These changes became mandatory every three years
beginning in 1994.
Back to Virginia Bankruptcy Court directory.
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