"Virginia Convert Chapter 13"
In the past, many debtors in Virginia bankruptcy filed Chapter 13 when past due on home their mortgages. In a chapter
7 case, payments must be brought current to retain possession. In a Chapter 13 case, once mortgage payments are
brought current through trustee payments (based upon priority assigned to particular debts), many debtors sought
conversion to discharge all remaining debts through Chapter 7.
| 11 U.S.C. §348(f)(2): "If the debtor converts a case under chapter 13 of this title to a case under
another chapter under this title in bad faith, the property in the converted case shall consist of the
property of the estate as of the date of conversion" |
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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