People who find themselves with dire financial problems often contemplate bankruptcy, but are not aware of what it entails. Chapter 7 is the most common chapter used for liquidation filing in the U. S. It obtained its name from the chapter it holds in the Bankruptcy Code.
Another name is goes under is liquidation bankruptcy. During a Chapter 7 bankruptcy Louisiana, your assets which do not fall under the exemption rule are disposed of by a trustee appointed by the court. The amounts received from the sale of your assets are used in the settlement of your outstanding debts.
Before you start your petition, you should make sure that you have all the required documents available. These include reports like payslips, bank statements, credit card statements, loan agreements and anything else you may need for the completion of the petition. The information that you supply in the petition documents should be the same as those listed in your financial reports.
There are many documents to be completed when filing for chapter 7. You can obtain the documents as a package from the court clerk's office. You may have to pay a fee to obtain it. The documents will include, among others, schedules of assets and liabilities and a statement of financial affairs. You are required to lay bare his financial life to the court. This includes listing all property, creditors, expenses, income, debts and property transfers. Once all the documents have been completed, it needs to be filed with clerk of the court. A filing fee will need to be paid at this point.
You will be required to successfully pass a means test calculation. This document has to be completed before the filing is done. The test calculates if you have the means to settle your debts. If you fail the means test, you will require special circumstances to file a petition under this chapter.
Once the petition has been filed, the court will issue a notice calling for a meeting of creditors. The notice is dispatched to all the creditors listed in the documents. During this meeting, the trustee will question you about your financial affairs. If the trustee is dissatisfied with the answers received, he or she has the right to postpone the meeting of creditors pending further investigation into your financial affairs. At this meeting, the creditors are also allowed to ask you questions related to your financial affairs.
The trustee is given permission to seize any property you have that is not exempted, and sell it to raise cash. You have the right to hold on to certain types of assets. This may include assets such as retirement accounts. Schedule C of your petition will indicate the list of exempted property you hold. The assets that are taken by the trustee will be available for distribution among your creditors.
The court will order a discharge of your debts about 60 days after the first meeting of creditors, if no objections had been raised by the trustee or the creditors. This order protects you from any further legal action by your creditors. You should bear in mind that not all your debt obligations will be discharged.
Another name is goes under is liquidation bankruptcy. During a Chapter 7 bankruptcy Louisiana, your assets which do not fall under the exemption rule are disposed of by a trustee appointed by the court. The amounts received from the sale of your assets are used in the settlement of your outstanding debts.
Before you start your petition, you should make sure that you have all the required documents available. These include reports like payslips, bank statements, credit card statements, loan agreements and anything else you may need for the completion of the petition. The information that you supply in the petition documents should be the same as those listed in your financial reports.
There are many documents to be completed when filing for chapter 7. You can obtain the documents as a package from the court clerk's office. You may have to pay a fee to obtain it. The documents will include, among others, schedules of assets and liabilities and a statement of financial affairs. You are required to lay bare his financial life to the court. This includes listing all property, creditors, expenses, income, debts and property transfers. Once all the documents have been completed, it needs to be filed with clerk of the court. A filing fee will need to be paid at this point.
You will be required to successfully pass a means test calculation. This document has to be completed before the filing is done. The test calculates if you have the means to settle your debts. If you fail the means test, you will require special circumstances to file a petition under this chapter.
Once the petition has been filed, the court will issue a notice calling for a meeting of creditors. The notice is dispatched to all the creditors listed in the documents. During this meeting, the trustee will question you about your financial affairs. If the trustee is dissatisfied with the answers received, he or she has the right to postpone the meeting of creditors pending further investigation into your financial affairs. At this meeting, the creditors are also allowed to ask you questions related to your financial affairs.
The trustee is given permission to seize any property you have that is not exempted, and sell it to raise cash. You have the right to hold on to certain types of assets. This may include assets such as retirement accounts. Schedule C of your petition will indicate the list of exempted property you hold. The assets that are taken by the trustee will be available for distribution among your creditors.
The court will order a discharge of your debts about 60 days after the first meeting of creditors, if no objections had been raised by the trustee or the creditors. This order protects you from any further legal action by your creditors. You should bear in mind that not all your debt obligations will be discharged.
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