It is important to understand what is involved in chapter 7 bankruptcy. There is usually the initial consultation which is very important. It can last between 2 to 4 hours. You are supposed to bring all relevant documents for the consultation. The consultation helps you to understand effects of the decision, the pros and cons. There will also be discussion on non-bankruptcy options. When considering filing for chapter 7 Monterey residents need to be versed with the process that is involved.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
In general, the process takes about 6 months and will cost hundreds of dollars. The charges are to cater for administrative costs. One will also need to go to court. The other requirement is that you will be required to go for credit counseling, which should be with a agency that is authorized. For example, in case you did already receive bankruptcy discharge within the last 8 years then you shall not disqualify. The other group of people that do not qualify are those with less income.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
The court will exercise control through a trustee that they appoint. The main role of a trustee is ensuring that all creditors are paid whatever they are owed. A trustee is paid more if they get to recover more assets from creditors. Trustees get to examine papers before them to ensure they contain all the requirements. Furthermore, they look out for any nonexempt property that can be sold to benefit creditors.
Trustees also have the responsibility of examining your financial transactions for the previous year to check whether there is anything that can be undone to have assets freed up. In most cases however, trustees never find anything of value that can be sold.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
In general, the process takes about 6 months and will cost hundreds of dollars. The charges are to cater for administrative costs. One will also need to go to court. The other requirement is that you will be required to go for credit counseling, which should be with a agency that is authorized. For example, in case you did already receive bankruptcy discharge within the last 8 years then you shall not disqualify. The other group of people that do not qualify are those with less income.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
The court will exercise control through a trustee that they appoint. The main role of a trustee is ensuring that all creditors are paid whatever they are owed. A trustee is paid more if they get to recover more assets from creditors. Trustees get to examine papers before them to ensure they contain all the requirements. Furthermore, they look out for any nonexempt property that can be sold to benefit creditors.
Trustees also have the responsibility of examining your financial transactions for the previous year to check whether there is anything that can be undone to have assets freed up. In most cases however, trustees never find anything of value that can be sold.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
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