Many people who find themselves in a financial situation where they are contemplating liquidation wonder exactly what Chapter 7 is. It is the most common bankruptcy chapter filed in the U. S. It is named Chapter 7 as that is the chapter of the Bankruptcy Code it falls under.
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.
You should ensure that you have all the necessary financial records available before commencing the filing. This includes reports such as bank statements, payslips, loan documents, credit card statements and any other documents required for the completion of the bankruptcy petition. The information filled in on the bankruptcy documents must match those of your financial records.
You will require a huge amount of documents when you do the filing. The documents are obtainable in package form from the bankruptcy clerk of the court's offices. You may be required to pay a certain fee to obtain it. These documents will include a statement of your financial affairs and a schedule of assets and liabilities. You will need to open your financial life to the court. This means listing all your income, property, expenses, property transfers and debts. Once completed, you need to file it with the clerk of the court. At this stage, a fee is payable for the filing.
To allow for filing, you need to be successful at a means test calculation. This has to be done before you file your documents. The test is a calculation of your means to settle all your debts. If you do not pass this test, you may have to make use of special circumstances to allow you to use this chapter for bankruptcy filing.
After you have filed the petition, a notice will be issued by the court calling for your creditors to attend a meeting. The notice is issued to the list of creditors in your petition documents. During this process, the trustee will pose questions about your financial situation. If the trustee is not satisfied with the answers you provide, the meeting may be postponed to allow for investigation into your affairs. The creditors may also raise question regarding the state of your finances during this meeting.
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.
If the creditors or the trustee do not raise any objections to your debt discharge, the court will discharge your debts 60 days after the first creditors meeting. The discharge protects you from any further collections from creditors. You should remain aware that you will not be discharged from all your debts.
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.
You should ensure that you have all the necessary financial records available before commencing the filing. This includes reports such as bank statements, payslips, loan documents, credit card statements and any other documents required for the completion of the bankruptcy petition. The information filled in on the bankruptcy documents must match those of your financial records.
You will require a huge amount of documents when you do the filing. The documents are obtainable in package form from the bankruptcy clerk of the court's offices. You may be required to pay a certain fee to obtain it. These documents will include a statement of your financial affairs and a schedule of assets and liabilities. You will need to open your financial life to the court. This means listing all your income, property, expenses, property transfers and debts. Once completed, you need to file it with the clerk of the court. At this stage, a fee is payable for the filing.
To allow for filing, you need to be successful at a means test calculation. This has to be done before you file your documents. The test is a calculation of your means to settle all your debts. If you do not pass this test, you may have to make use of special circumstances to allow you to use this chapter for bankruptcy filing.
After you have filed the petition, a notice will be issued by the court calling for your creditors to attend a meeting. The notice is issued to the list of creditors in your petition documents. During this process, the trustee will pose questions about your financial situation. If the trustee is not satisfied with the answers you provide, the meeting may be postponed to allow for investigation into your affairs. The creditors may also raise question regarding the state of your finances during this meeting.
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.
If the creditors or the trustee do not raise any objections to your debt discharge, the court will discharge your debts 60 days after the first creditors meeting. The discharge protects you from any further collections from creditors. You should remain aware that you will not be discharged from all your debts.
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