It is important to understand what is involved in chapter 7 bankruptcy. There is usually the initial consultation which is very important. It can last between 2 to 4 hours. You are supposed to bring all relevant documents for the consultation. The consultation helps you to understand effects of the decision, the pros and cons. There will also be discussion on non-bankruptcy options. When considering filing for chapter 7 Monterey residents need to be versed with the process that is involved.
It is a must that one registers for credit counseling when they want to be declared bankrupt under this option. The counseling needs to be complete within 6 months after filing for bankruptcy. Counseling is to be handled by service providers who are authorized. After the course is completed, there is provision of a certificate. When considering an application under this category, one should be versed with all the steps.
In general, it will be a process that takes approximately 6 months, costing some hundreds of dollars. The charges are what cater for administrative costs. The person will also need to attend court. Moreover, you will be required to complete credit counseling. It should be remembered that not all people do qualify. If for instance you received bankruptcy discharge in the past 8 years, you will not be qualified. Other people that do not qualify are are the ones with less income and a huge debt burden.
In order to be qualified, there is a petition that should be filled out, plus other forms. The filling should be done from a court. The forms have details like the current income of the individual, monthly expenses, debts and property that you have owned in the last 2 years. After filing, there will be what is called automatic stay. The stay stops most creditors from having to collect what they are owed.
By filing for chapter 7, you will be technically placing the property which you own in the hands of the courts. You will not be allowed to sell or give away any of the property that you own when you file of pay pre-filing debts, at least not with the consent. With a few exceptions however, you can be allowed to do what you want to do with the property that is earned after filing for bankruptcy.
The court will exercise control through a trustee that they appoint. The main role of a trustee is ensuring that all creditors are paid whatever they are owed. A trustee is paid more if they get to recover more assets from creditors. Trustees get to examine papers before them to ensure they contain all the requirements. Furthermore, they look out for any nonexempt property that can be sold to benefit creditors.
Trustees will examine all the financial transactions that the person did in the previous year. They do that to see if there is anything which could be undone to free up assets. Trustees never however never really find anything that can be sold.
A week after filing is done, a meeting of creditors is called. The trustee runs the meeting. The meeting is used to ask for clarifications and any questions that the trustee might have.
It is a must that one registers for credit counseling when they want to be declared bankrupt under this option. The counseling needs to be complete within 6 months after filing for bankruptcy. Counseling is to be handled by service providers who are authorized. After the course is completed, there is provision of a certificate. When considering an application under this category, one should be versed with all the steps.
In general, it will be a process that takes approximately 6 months, costing some hundreds of dollars. The charges are what cater for administrative costs. The person will also need to attend court. Moreover, you will be required to complete credit counseling. It should be remembered that not all people do qualify. If for instance you received bankruptcy discharge in the past 8 years, you will not be qualified. Other people that do not qualify are are the ones with less income and a huge debt burden.
In order to be qualified, there is a petition that should be filled out, plus other forms. The filling should be done from a court. The forms have details like the current income of the individual, monthly expenses, debts and property that you have owned in the last 2 years. After filing, there will be what is called automatic stay. The stay stops most creditors from having to collect what they are owed.
By filing for chapter 7, you will be technically placing the property which you own in the hands of the courts. You will not be allowed to sell or give away any of the property that you own when you file of pay pre-filing debts, at least not with the consent. With a few exceptions however, you can be allowed to do what you want to do with the property that is earned after filing for bankruptcy.
The court will exercise control through a trustee that they appoint. The main role of a trustee is ensuring that all creditors are paid whatever they are owed. A trustee is paid more if they get to recover more assets from creditors. Trustees get to examine papers before them to ensure they contain all the requirements. Furthermore, they look out for any nonexempt property that can be sold to benefit creditors.
Trustees will examine all the financial transactions that the person did in the previous year. They do that to see if there is anything which could be undone to free up assets. Trustees never however never really find anything that can be sold.
A week after filing is done, a meeting of creditors is called. The trustee runs the meeting. The meeting is used to ask for clarifications and any questions that the trustee might have.
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