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"Virginia Chapter 11 Filings"
The majority of debtors filing Virginia Chapter 11 cases are business, however, individuals may also file for
reorganization under this chapter. The total cost of filing Virginia bankruptcy reorganization is significantly
higher than wage earners plans and liquidation, and in turn, offers significantly greater options. Of all
Virginia bankruptcy cases filed, Chapter 11 cases generally represent about one percent of total case volume.
| 11 U.S.C. §1102(a) provides, in part, "(1) Except as provided in paragraph (3), as soon as practicable
after the order for relief under chapter 11 of this title, the United States trustee shall appoint a committee
of creditors holding unsecured claims and may appoint additional committees of creditors or of equity security
holders as the United States trustee deems appropriate. (2) On request of a party in interest, the court may
order the appointment of additional committees of creditors or of equity security holders if necessary to
assure adequate representation of creditors or of equity security holders. The United States trustee shall
appoint any such committee." |
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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