"Virginia Chapter 11"
Reorganization of debts according to 11 U.S.C. 1101, et seq., through the federal court system. All Virginia
bankruptcy proceedings under chapter
11 must be filed in federal court, and generally, do not require a trustee to administer the estate. The
majority of all Virginia bankruptcy cases filed under Chapter 11 are administered by the debtor-in-possession.
| 11 U.S.C. §1107: "(a) Subject to any limitations on a trustee serving in a case under this
chapter, and to such limitations or conditions as the court prescribes, a debtor in possession shall have all the
rights, other than the right to compensation under section 330 of this title, and powers, and shall perform all
the functions and duties, except the duties specified in sections 1106(a)(2), (3), and (4) of this title, of a
trustee serving in a case under this chapter. (b) Notwithstanding section 327(a) of this title, a person is not
disqualified for employment under section 327 of this title by a debtor in possession solely because of such
person's employment by or representation of the debtor before the commencement of the case" |
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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