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 a case is filed, you are required to gather such financial records as loan documents, statements from banks, credit card statements and pay stubs. This is information required to fill out bankruptcy petitions, schedules and financial affairs statements. They also help to fill in other necessary documents.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the implications.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is accurate.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
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 a case is filed, you are required to gather such financial records as loan documents, statements from banks, credit card statements and pay stubs. This is information required to fill out bankruptcy petitions, schedules and financial affairs statements. They also help to fill in other necessary documents.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the implications.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is accurate.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
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.
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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.
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