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 the filing of the case, one is required to gather their financial records such as bank statements, loan documents, pay stubs and credit card statements. The information is needed for filling out schedules, bankruptcy petition and statements of financial affairs. This is in addition to other necessary documents.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
Debtors are also required to pass the means test calculation. This is also a document which must be completed before you can file for bankruptcy. The test was added to the code of bankruptcy in the year 2005 and calculates whether one is able to afford to pay at least some portion of the debts. The test makes comparison of income using median income of the state. In case you fail it, you will only be able to file for bankruptcy under special exceptions.
After the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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 the filing of the case, one is required to gather their financial records such as bank statements, loan documents, pay stubs and credit card statements. The information is needed for filling out schedules, bankruptcy petition and statements of financial affairs. This is in addition to other necessary documents.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
Debtors are also required to pass the means test calculation. This is also a document which must be completed before you can file for bankruptcy. The test was added to the code of bankruptcy in the year 2005 and calculates whether one is able to afford to pay at least some portion of the debts. The test makes comparison of income using median income of the state. In case you fail it, you will only be able to file for bankruptcy under special exceptions.
After the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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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