Chapter 7 is the most common form of bankruptcy that is filed. It can also be referred to as liquidation or straight bankruptcy. It is actually what the majority of people think about when the word bankruptcy comes to mind. For this process, there is appointment of a trustee by the court who will oversee the case. Part of their role is taking assets of the person and selling them to pay creditors. When considering chapter 7 Monterey residents need to know what is involved.
Before one gets to file for petitions, you will be supposed to gather useful financial statements from their bank, loan documents and credit card statements. The information will be useful for filing out of statements of financial affairs and schedules. The same will apply to all other documents to be filed in court. In essence, the person should open up about their situation financially.
Almost all people that want to file for chapter 7 cases need to participate in credit counseling. The sessions are usually done by approved credit counselors before cases can be filed. The sessions are done in person, online or over the phone. This is usually important because there are potential debtors without information of the options that they have. Credit counselors can suggest alternatives which can keep the person out of bankruptcy.
When a petition is filed under chapter 7, it will stop most of the collection actions against the debtor and his or her property. Filing of the petition will however not stop some actions that are listed under bankruptcy code. Also, the stay might only be effective for a short duration in some cases. As long as the stay is in effect, a creditor may not initiate lawsuits or wage garnishments. The bankruptcy clerk will give notice of bankruptcy case to all the creditors whose addresses and names are provided by the debtor.
After some 20 to 40 days after the petition gets filed, the trustee that is in charge of that case schedules a case of creditors. In that meeting, a debtor should be under oath before being asked questions by the trustee and creditors. It is a meeting that is attended by the debtor in person.
In case a husband and wife were to file a petition together, they are supposed to attend the meetings together to answer questions. Within ten days of the creditors meeting, there will be a report to the court given by the trustee. They report whether the case can be assumed as abuse, which is done with consideration of the means test. It is the means test that will determine eligibility for one to file a case under chapter 7.
It is very important that debtors cooperate with trustees and offer all financial records and documents which are requested. The debtor is asked questions during the meeting so that it is confirmed they are aware of potential consequences of seeking discharge in bankruptcy.
Individuals should seek professional advice when they are filing for chapter 7. It can be from a trusted friend or legal practitioner. As a matter of fact, it is best to have an attorney oversee the process.
Before one gets to file for petitions, you will be supposed to gather useful financial statements from their bank, loan documents and credit card statements. The information will be useful for filing out of statements of financial affairs and schedules. The same will apply to all other documents to be filed in court. In essence, the person should open up about their situation financially.
Almost all people that want to file for chapter 7 cases need to participate in credit counseling. The sessions are usually done by approved credit counselors before cases can be filed. The sessions are done in person, online or over the phone. This is usually important because there are potential debtors without information of the options that they have. Credit counselors can suggest alternatives which can keep the person out of bankruptcy.
When a petition is filed under chapter 7, it will stop most of the collection actions against the debtor and his or her property. Filing of the petition will however not stop some actions that are listed under bankruptcy code. Also, the stay might only be effective for a short duration in some cases. As long as the stay is in effect, a creditor may not initiate lawsuits or wage garnishments. The bankruptcy clerk will give notice of bankruptcy case to all the creditors whose addresses and names are provided by the debtor.
After some 20 to 40 days after the petition gets filed, the trustee that is in charge of that case schedules a case of creditors. In that meeting, a debtor should be under oath before being asked questions by the trustee and creditors. It is a meeting that is attended by the debtor in person.
In case a husband and wife were to file a petition together, they are supposed to attend the meetings together to answer questions. Within ten days of the creditors meeting, there will be a report to the court given by the trustee. They report whether the case can be assumed as abuse, which is done with consideration of the means test. It is the means test that will determine eligibility for one to file a case under chapter 7.
It is very important that debtors cooperate with trustees and offer all financial records and documents which are requested. The debtor is asked questions during the meeting so that it is confirmed they are aware of potential consequences of seeking discharge in bankruptcy.
Individuals should seek professional advice when they are filing for chapter 7. It can be from a trusted friend or legal practitioner. As a matter of fact, it is best to have an attorney oversee the process.
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