"Virginia Filing Chapter 11"
Each debtor filing Virginia bankruptcy under Chapter 11 is authorized to proceed as a debtor in possession. As a
term of legal art, a debtor in possession assumes the rights and responsibilities traditionally associated with
a trustee in consumer cases. All debtors filing Chapter 11 must be prepared to satisfy an extensive array of
duties within court established deadlines.
| 11 U.S.C. §1121 provides, in part,: "(a) The debtor may file a plan with a petition commencing a voluntary
case, or at any time in a voluntary case or an involuntary case. (b) Except as otherwise provided in this
section, only the debtor may file a plan until after 120 days after the date of the order for relief under
this chapter." |
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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