Monday, 12 November 2018

Tips On Chapter 7 Monterey Bankruptcy Process

By Lisa Gibson


When people become bankrupt, they become so stressed because their property can be seized anytime. Nevertheless, they can avoid this by filing for bankruptcy. Hence, it is imperative to find an attorney that will present their case with expertise. You can find a good lawyer to guide you through chapter 7 Monterey process which is very simple. You have to complete petitions, forms, and schedules as well as list your debts, financial transactions, and assets. The bankruptcy procedure is listed below. Follow the steps and understand before you file your case.

The first and most critical step is getting mandatory counseling on credit. The counseling must take place during the six months before you file for the bankruptcy. This is a law that was added in 2005 when the bankruptcy laws were revised. Hence, you must get the counseling from an approved agency by the United States office of the trustee. If you do not get a counselor, you have to notify the court to dismiss your case.

After the counseling, you are required to file the petition including other vital forms. You must file these documents before the case. The paperwork includes the petition, your financial information, a list containing your expenses and income. The court will use these forms to determine your eligibility. Thus, make sure you have included all the vital documents.

Then, the trustee takes over after you file the forms with the court. The court then appoints a trustee to handle the entire case for you. The trustee will then review your paperwork then distribute your nonexempt property to your creditors. Also, you must provide the trustee with a copy of your recent tax return. Then, the court will notify you when your meeting with the creditors will take place.

Then, your eligibility will be determined by the court. This is after the trustee takes a look at your documentation. Then, the court will decide your eligibility. In case you are found illegible, it is because you may have failed a test called means test. This test is done by comparing your expenses. Hence, you will be considered capable of repayment according to chapter 13.

Then, all the nonexempt property that you own will be sold so that the money is distributed to the creditors if they will be worthy. In case you may have secured any debts for which collateral backed you up, ensure you give back the property as soon as possible. The creditor can seize this property if you default.

After you have filed the case and waiting for your discharge, you are required to get training in financial management. This requirement was added to the bankruptcy law in 2005 when this law was overhauled. After the course, you will wait for about three months or half a year for the case to be discharged.

After this period, the court will send you a mail notifying you that you have been discharged. The case will then be closed officially after a few weeks. At this point, no creditor will hold you liable for any of their debts. Thus, this is an excellent chance to have a new beginning.




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