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 registers for credit counseling when they want to be declared bankrupt under this option. The counseling needs to be complete within 6 months after filing for bankruptcy. Counseling is to be handled by service providers who are authorized. After the course is completed, there is provision of a certificate. When considering an application under this category, one should be versed with all the steps.
In general, it will be a process that takes approximately 6 months, costing some hundreds of dollars. The charges are what cater for administrative costs. The person will also need to attend court. Moreover, you will be required to complete credit counseling. It should be remembered that not all people do qualify. If for instance you received bankruptcy discharge in the past 8 years, you will not be qualified. Other people that do not qualify are are the ones with less income and a huge debt burden.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
By filing for chapter 7, you will be technically placing the property which you own in the hands of the courts. You will not be allowed to sell or give away any of the property that you own when you file of pay pre-filing debts, at least not with the consent. With a few exceptions however, you can be allowed to do what you want to do with the property that is earned after filing for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit creditors.
The other obligation of a trustee is to examine financial transactions for the past years. That is done to know whether there are is anything which can be undone to free assets. In majority of the cases, trustees do not find anything which 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 registers for credit counseling when they want to be declared bankrupt under this option. The counseling needs to be complete within 6 months after filing for bankruptcy. Counseling is to be handled by service providers who are authorized. After the course is completed, there is provision of a certificate. When considering an application under this category, one should be versed with all the steps.
In general, it will be a process that takes approximately 6 months, costing some hundreds of dollars. The charges are what cater for administrative costs. The person will also need to attend court. Moreover, you will be required to complete credit counseling. It should be remembered that not all people do qualify. If for instance you received bankruptcy discharge in the past 8 years, you will not be qualified. Other people that do not qualify are are the ones with less income and a huge debt burden.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
By filing for chapter 7, you will be technically placing the property which you own in the hands of the courts. You will not be allowed to sell or give away any of the property that you own when you file of pay pre-filing debts, at least not with the consent. With a few exceptions however, you can be allowed to do what you want to do with the property that is earned after filing for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit creditors.
The other obligation of a trustee is to examine financial transactions for the past years. That is done to know whether there are is anything which can be undone to free assets. In majority of the cases, trustees do not find anything which 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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