"Virginia Reaffirming Debts"
The act of reaffirming debts requires court approval in all Virginia bankruptcy proceedings. Both the documents required to evidence a reaffirmation
of debt, and the hearing conducted by the court, inform the debtor that payment of the debt will be mandatory.
Discharge does not eliminate reaffirmed debts. Creditors obtaining a reaffirmation in a Virginia bankruptcy
proceeding may file suit in state courts for collection in the
event of nonpayment, despite a general Chapter 7 discharge.
| 11 U.S.C. §521(2)(a) provides "within thirty days after the date of the filing of a
petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is
earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall
file with the clerk a statement of his intention with respect to the retention or surrender of such property
and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem
such property, or that the debtor intends to reaffirm debts secured by such property." |
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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