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"Virginia Reaffirmations"
In Chapter 7 cases, Virginia bankruptcy courts allow debtors to retain collateral used as security for
dischargeable debts. Past due amounts must be brought current. Debtors must agree in writing to continue payments. Court approval is required yet
seldom denied. In effect, a reaffirmation agreement excludes a specific secured debt from discharge.
| Rule 4008 of the Federal Rules of Bankruptcy Procedure provides "Discharge and
Reaffirmation Hearing. Not more than 30 days following the entry of an order granting or denying a
discharge, or confirming a plan in a chapter 11 reorganization case concerning an individual debtor and on
not less than 10 days notice to the debtor and the trustee, the court may hold a hearing as provided in Sec.
524(d) of the Code. A motion by the debtor for approval of a reaffirmation agreement shall be filed before
or at the hearing." |
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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