"Virginia Chapter 13"
Restructure of debts according to 11 U.S.C. 1301, et seq., through the federal court system. All Virginia
Chapter
13 cases must be filed in federal court. Additionally, debtors must maintain a regular income and be capable of
making monthly payments. Virginia bankruptcy plans require turn-over of all disposable income.
| 11 U.S.C. §109(e) "Only an individual with regular income that owes, on the date of the
filing of the petition, noncontingent, liquidated, unsecured debts of less than $250,000 and noncontingent, liquidated,
secured debts of less than $750,000, or an individual with regular income and such individual's spouse,
except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition,
noncontingent, liquidated, unsecured debts that aggregate less than $250,000 and noncontingent,
liquidated, secured debts of less than $750,000 may be a debtor under chapter13 of this title." (ed -
Limits are now higher). |
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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