Chapter 7 is perhaps the most common form of bankruptcy which is filed by individuals. It is also called straight bankruptcy or liquidation. It is what comes to the minds of most people when they hear about bankruptcy. There will be appointment of a trustee by the courts that oversees everything for the process. One of their roles is taking assets of that person and putting them up for sale to pay up creditors. In considering chapter 7 Monterey residents should know what it involves.
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 is filed, the trustee that was appointed in charge of that case holds a creditors meeting. For the meeting, debtors will be put under oath, with both creditors and the trustee asking questions. The debtor has to attend the meeting to answer any arising questions.
If a petition is field jointly by a husband and wife, they are required to both attend the meeting of creditors. Ten days after the meeting, the trustee is supposed to issue a report to the courts. They will give a report whether that case can be assumed as an abuse to court processes considering what is stipulated in the means test. The test will determine how eligible one is for filing of cases 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 is filed, the trustee that was appointed in charge of that case holds a creditors meeting. For the meeting, debtors will be put under oath, with both creditors and the trustee asking questions. The debtor has to attend the meeting to answer any arising questions.
If a petition is field jointly by a husband and wife, they are required to both attend the meeting of creditors. Ten days after the meeting, the trustee is supposed to issue a report to the courts. They will give a report whether that case can be assumed as an abuse to court processes considering what is stipulated in the means test. The test will determine how eligible one is for filing of cases 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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