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.
The majority of people seeking to file for chapter 7 need to take part in counseling with licensed and approved credit counselors. It is a session can be done in person, online or over the phone. It is very crucial since there are potential debtors without proper knowledge of their options. When you deal with a counselor, they can also suggest alternatives that can be used in place of bankruptcy. It will ensure that before you file, you are well versed with its implications.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is 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 a debtor receives discharge, they would need to take courses in financial management. It is a class that is likely to be given by same people that gave credit counselling. It is important to spend one and a half hours in person, on telephone or online.
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.
The majority of people seeking to file for chapter 7 need to take part in counseling with licensed and approved credit counselors. It is a session can be done in person, online or over the phone. It is very crucial since there are potential debtors without proper knowledge of their options. When you deal with a counselor, they can also suggest alternatives that can be used in place of bankruptcy. It will ensure that before you file, you are well versed with its implications.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is 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 a debtor receives discharge, they would need to take courses in financial management. It is a class that is likely to be given by same people that gave credit counselling. It is important to spend one and a half hours in person, on telephone or online.
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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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