Chapter 7 is the single most common form of bankruptcy that is filed in the United States. It is also known as straight bankruptcy. It is what most people think about when the term bankruptcy comes to mind. A court will appoint a trustee to oversee the case. One of the roles of the trustee will be to take over assets of the person involved, have them sold and distribute the money gotten to creditors. In considering chapter 7 Salt Lake City Utah residents need to know what it involves.
Before the case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other documents.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized exceptions.
After the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
If the debtor has non-exempt property, a trustee can seize and sell property. Exemptions are federal statutes that allow you to have some of your property protected when you file for bankruptcy. For instance, there are exemptions to protect retirement accounts like 401k plans.
Before debtors receive discharge, a course in financial management will be required. The class is likely to get offered by same individuals that offer credit counseling. The advisable time is one and a half hours, which can be done through phone or in person.
Before the case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other documents.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized exceptions.
After the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
If the debtor has non-exempt property, a trustee can seize and sell property. Exemptions are federal statutes that allow you to have some of your property protected when you file for bankruptcy. For instance, there are exemptions to protect retirement accounts like 401k plans.
Before debtors receive discharge, a course in financial management will be required. The class is likely to get offered by same individuals that offer credit counseling. The advisable time is one and a half hours, which can be done through phone or in person.
About the Author:
You can find an overview of the benefits you get when you consult a Chapter 7 Salt Lake City Utah attorney at http://www.bankruptcyutah.com/services right now.
No comments:
Post a Comment