"Virginia New Bankruptcy Laws"
The Abuse Prevention Act is now pending before the U.S. Congress. This proposed act will affect all Virginia
bankruptcy cases. in particular, restrictions on who may file Chapter 7, increased Chapter 13 payments,
restrictions on judicial authority to accommodate debtors, and new mandatory fines and penalties against debtors
are expected.
| Encouraged by the passage of the Bankruptcy Reform Act of 1994 (Pub. L. No. 103-394, 108
Stat. 4106), commercial creditors increased lobbying efforts for broad-sweeping bankruptcy reform. H.R. 975
- Abuse Prevention and Consumer Protection Act of 2003 passed the House, was placed on the Senate
legislative calendar 3-21-03 for future consideration (Senate Calendar No. 50). Vote blocked by committee in
2003. Re-docketed for 2004. |
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.
|
|
