"Virginia Bankruptcy Reorganization"
Plans proposed in Virginia bankruptcy cases under Chapter 11, 12, and 13 may, and usually do, alter payment
terms for debts. Reorganization refers to discounting interest payments, extending payment terms, rejecting
contingent claims, and avoiding particular debts. A Chapter 13 plan may reorganize debts, for a period of
payment of not more than 5 years, and may provide as little as 10% repayment of principal owed. All three types
of reorganization available through Virginia bankruptcy courts require the submission of a plan.
| 11 U.S.C. §1123(a) provides, in part, "Contents of plan. (a) Notwithstanding any
otherwise applicable nonbankruptcy law, a plan shall - (1) designate, subject to section 1122 of this title,
classes of claims, other than claims of a kind specified in section 507(a)(1), 507(a)(2), or 507(a)(8) of
this title, and classes of interests; (2) specify any class of claims or interests that is not impaired
under the plan; (3) specify the treatment of any class of claims or interests that is impaired under the
plan; (4) provide the same treatment for each claim or interest of a particular class, unless the holder of
a particular claim or interest agrees to a less favorable treatment of such particular claim or interest;
(5) provide adequate means for the plan's implementation, such as - " |
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 words & phrases.
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