"Virginia Family Farmer"
In general, to be considered a family farmer by the Code, the majority of the debtors income must be earned
from farming operations, and, this income must be sufficiently stable to make regular payments to a trustee
while the plan is pending.
| 11 U.S.C. 101(18) defines an individual family farmer as a person, and spouse if any, engaged in a farming operation whose aggregate debts
do not exceed $1,500,000 and not less than 80 percent of whose aggregate noncontingent, liquidated debts
(excluding a debt for the principal residence of such individual or such individual and spouse unless such debt
arises out of a farming operation), on the date Virginia bankruptcy is filed, arise out of a farming operation owned or
operated by such individual or such individual and spouse, and such individual or such individual and spouse
receive from such farming operation more than 50 percent of such individual's or such individual and spouse's
gross income for the taxable year preceding the taxable year in which the Virginia bankruptcy concerning such individual or
such individual and spouse was filed. |
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.
|
|
