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 files for a petition, they will need to bring together all financial records like loan documents, statements from the bank and credit card statements. The information will be used to fill out statements of financial affairs, bankruptcy petition and schedules. The same is the case for all other documents which will be filed by the courts. In essence, one will need to open up about their financial position.
Almost all people that plan to file for chapter 7 should take part in some credit counseling. The sessions are overseen by credit counselors before filing of the petition in court. The sessions will be done over the phone, in person or online. This will be important because you find some debtors that have no information of the options which they have. With the services of counselors, you are able to get alternatives which can be used.
When petitions are filed under chapter 7, it stops most collections against a debtor and their property. There are however some actions that are not stopped by filing of the petitions. The actions are listed under the bankruptcy code. Furthermore, the stay can only be effective for a short period of time on some occasions. As long as stay orders are in effect, lawsuits are not to be initiated against the creditor. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose addresses or names are given by the debtor.
Some 20 to 40 days after filing of the petition, the trustee in charge of the case will hold a meeting with creditors. For that meeting, debtors are put under oath and both the trustee and creditors can ask questions. The meeting has to be attended by the debtor so that they answer any questions that arise.
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.
Debtors are supposed to as much as possible cooperate with trustees and provide all the documents that have been requested for. The debtor will be asked questions during their meeting to see whether they are well versed with what the effects the petition will have on them.
It is important to obtain professional assistance when you are filing for bankruptcy. It could be from a friend that is trusted or an attorney. Actually, you are better off getting professional advice about the procedure.
Before one files for a petition, they will need to bring together all financial records like loan documents, statements from the bank and credit card statements. The information will be used to fill out statements of financial affairs, bankruptcy petition and schedules. The same is the case for all other documents which will be filed by the courts. In essence, one will need to open up about their financial position.
Almost all people that plan to file for chapter 7 should take part in some credit counseling. The sessions are overseen by credit counselors before filing of the petition in court. The sessions will be done over the phone, in person or online. This will be important because you find some debtors that have no information of the options which they have. With the services of counselors, you are able to get alternatives which can be used.
When petitions are filed under chapter 7, it stops most collections against a debtor and their property. There are however some actions that are not stopped by filing of the petitions. The actions are listed under the bankruptcy code. Furthermore, the stay can only be effective for a short period of time on some occasions. As long as stay orders are in effect, lawsuits are not to be initiated against the creditor. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose addresses or names are given by the debtor.
Some 20 to 40 days after filing of the petition, the trustee in charge of the case will hold a meeting with creditors. For that meeting, debtors are put under oath and both the trustee and creditors can ask questions. The meeting has to be attended by the debtor so that they answer any questions that arise.
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.
Debtors are supposed to as much as possible cooperate with trustees and provide all the documents that have been requested for. The debtor will be asked questions during their meeting to see whether they are well versed with what the effects the petition will have on them.
It is important to obtain professional assistance when you are filing for bankruptcy. It could be from a friend that is trusted or an attorney. Actually, you are better off getting professional advice about the procedure.
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