"Virginia Chapter 13 Plan"
In Virginia bankruptcy cases filed under Chapter 13 of the Code, a plan of reorganization is required that
proposes repayment of all, or part, of total debts owed to creditors. Confirmation of the plan is required based
on the court's assessment of compliance with applicable bankruptcy laws, including turn over of all disposable
income to the trustee.
| 11 U.S.C. §1322(a): "The plan shall - (1) provide for the submission of all or such
portion of future earnings or other future income of the debtor to the supervision and control of the trustee
as is necessary for the execution of the plan; (2) provide for the full payment, in deferred cash payments,
of all claims entitled to priority under section 507 of this title, unless the holder of a particular claim agrees
to a different treatment of such claim; and (3) if the plan classifies claims, provide the same treatment
for each claim within a particular class." |
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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