The Basic Procedure For Chapter 7 Monterey

By Lisa Gibson


If you become bankrupt, do not drain yourself in stress and depression. There are so many lawyers who can help you get over this stressful period by filing for bankruptcy. Hence, you can follow the chapter 7 Monterey bankruptcy procedure, which is quite simple. Nevertheless, you have to complete petition forms, schedules and list all your financial transactions, expenses, debts, and assets. These are the things that will be sued to check your eligibility. The procedure has been outlined below for you to read and understand before filing your case.

The court will require you to get counseling about credit. This counseling is mandatory, and it has to be completed within the first six months before filing for bankruptcy. This law was added when the bankruptcy law was amended in 2005. Thus, you must look for an approved agency that will provide the counseling. Failure to this, you must let the court know so that your case can be dismissed.

Then, you need to file your petition and other necessary forms. This is mandatory before you start your case. The forms and documents will include the bankruptcy petition, financial information, and forms in which you will list your income as well as expenses. All these forms will determine whether you will win the case or not.

After you file the forms with the court, it will appoint a trustee for you. The trustee will help you handle the case. Then, he/she will take a look at your paperwork. Then, the professional will distribute any nonexempt property that you own to all your creditors. You, however, must provide the trustee with a recent tax returns copy. The court will then send you a notification about when you will meet the creditors.

After that, your eligibility to file the case is confirmed. This is after the trustee gathers and reviews all your information. Then, the court makes a decision on your eligibility for the case. You might not be found eligible if you do not pass the means test. This means that you can afford to repay the creditors like in chapter 13.

If you have any nonexempt property, it is worth will be calculated. If the property is worthy, it will be sold. Then, your creditors will be given the money. If it chances that you have secured any debts that have been backed by some collateral, you are advised to return the property before the creditors seize it.

After you have filed the case and waiting for your discharge, you are required to get training in financial management. This requirement was added to the bankruptcy law in 2005 when this law was overhauled. After the course, you will wait for about three months or half a year for the case to be discharged.

After this period, the court will send you a mail notifying you that you have been discharged. The case will then be closed officially after a few weeks. At this point, no creditor will hold you liable for any of their debts. Thus, this is an excellent chance to have a new beginning.




About the Author:



No comments:

Post a Comment