The most common form of bankruptcy that people file is chapter 7. It is also known as liquidation or straight bankruptcy. It is what comes to the mind of most people when they think of bankruptcy. For the process, a trustee will be appointed by courts to oversee the entire process. Their role includes putting the assets of debtor on sale to be able to pay off creditors. In consideration of chapter 7 Monterey residents ought to be versed with 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 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 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.
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.
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 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 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.
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.
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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