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 collection actions against debtors and their property. It does not however stop some actions which are listed in the bankruptcy code. In addition, the stay orders could only be effective for a short time in some instances. As long as stay orders are in effect, creditors are not to initiate lawsuits or even wage garnishments. The clerk in charge will give notice of bankruptcy to creditors whose addresses and names have been provided by the debtor.
After some 20 to 40 days after the petition gets filed, the trustee that is in charge of that case schedules a case of creditors. In that meeting, a debtor should be under oath before being asked questions by the trustee and creditors. It is a meeting that is attended by the debtor in person.
If a husband and wife file a petition jointly, they will be both required to attend the meeting to answer questions. Within 10 days of the meeting of creditors, the trustee reports to the court. They will report whether that case should be assumed to be an abuse considering the means test. The means test is what determines eligibility for filing of cases under chapter 7.
Debtors are supposed to as much as possible cooperate with trustees and provide all the documents that have been requested for. The debtor will be asked questions during their meeting to see whether they are well versed with what the effects the petition will have on them.
It is important to get professionals assistance when filing for chapter 7. This could be from a trusted friend or an attorney. As a matter of fact, it is best to get a legal professional to take you through the process.
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 collection actions against debtors and their property. It does not however stop some actions which are listed in the bankruptcy code. In addition, the stay orders could only be effective for a short time in some instances. As long as stay orders are in effect, creditors are not to initiate lawsuits or even wage garnishments. The clerk in charge will give notice of bankruptcy to creditors whose addresses and names have been provided by the debtor.
After some 20 to 40 days after the petition gets filed, the trustee that is in charge of that case schedules a case of creditors. In that meeting, a debtor should be under oath before being asked questions by the trustee and creditors. It is a meeting that is attended by the debtor in person.
If a husband and wife file a petition jointly, they will be both required to attend the meeting to answer questions. Within 10 days of the meeting of creditors, the trustee reports to the court. They will report whether that case should be assumed to be an abuse considering the means test. The means test is what determines eligibility for filing of cases under chapter 7.
Debtors are supposed to as much as possible cooperate with trustees and provide all the documents that have been requested for. The debtor will be asked questions during their meeting to see whether they are well versed with what the effects the petition will have on them.
It is important to get professionals assistance when filing for chapter 7. This could be from a trusted friend or an attorney. As a matter of fact, it is best to get a legal professional to take you through the process.
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