"Virginia Convert Chapter 7"
A conversion of a Virginia bankruptcy case from Chapter 7 to Chapter 13 fundamentally changes the nature of
the proceeding. Rather than discharge all unsecured debts, full or partial payments are required for all debts
during the duration of the plan term. Conversion of a Virginia bankruptcy case to Chapter 13 does however allow
all past due payments to be included within the plan, as if paid current.
| 11 U.S.C. §706(a0 provides, in part, "The debtor may convert a case under this chapter to a
case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section
1112, 1208, or 1307 of this title. Any waiver of the right to convert a case under this subsection is
unenforceable." |
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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