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 case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other documents.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the implications.
A debtor will also have to pass a means test calculation. It is a document that is supposed to be also completed before filing for bankruptcy. It is a test that was added to bankruptcy code in 2005. It calculates whether you can pay some portion of your debts. It does compare the income of the debtor with the median income of that state. If one fails the mean test, they will only be able to do filing under 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 may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 401k plan.
Before discharge is received by the debtor, a course in financial management is needed. The class will most probably be taken by credit counselors. It is advisable to spend one and a half hours for the classes, either in person or through telephone.
Before the case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other documents.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the implications.
A debtor will also have to pass a means test calculation. It is a document that is supposed to be also completed before filing for bankruptcy. It is a test that was added to bankruptcy code in 2005. It calculates whether you can pay some portion of your debts. It does compare the income of the debtor with the median income of that state. If one fails the mean test, they will only be able to do filing under 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 may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 401k plan.
Before discharge is received by the debtor, a course in financial management is needed. The class will most probably be taken by credit counselors. It is advisable to spend one and a half hours for the classes, either in person or through telephone.
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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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