"Virginia Chapter 13 Confirmation"
Before a Virginia bankruptcy plan of reorganization becomes effective, the court must approve, or "confirm" the
plan after notice and hearing. Absent confirmation, cases are either dismissed or converted to Chapter 7.
| 11 U.S.C. §1325(a) provides, in part, "Except as provided in subsection (b), the court
shall confirm a plan if - (1) The plan complies with the provisions of this chapter and with the other
applicable provisions of this title; (2) any fee, charge, or amount required under chapter 123 of title 28,
or by the plan, to be paid before confirmation, has been paid; (3) the plan has been proposed in good faith
and not by any means forbidden by law; (4) the value, as of the effective date of the plan, of property to
be distributed under the plan on account of each allowed unsecured claim is not less than the amount that
would be paid on such claim if the estate of the debtor were liquidated under chapter 7 of this title on
such date." A majority of the secured creditors in a Virginia bankruptcy proceeding under Chapter 13 must
also approve the plan. |
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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