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.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized exceptions.
After doing the filing, the court issues a document that gives notice of a meeting of creditors and debtors. The notice will be sent to all creditors who are listed within the documents of bankruptcy. At the creditors meeting, the trustee asks the debtor a number of questions concerning bankruptcy. This includes whether information contained in the documents is accurate.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
If a debtors have non-exempt property, it is still possible for the trustee to seize and sell it. An exemption is a federal regulation which allows a debtor to have some property protected as they file for bankruptcy. For example, there is usually an exemption to protect a retirement account like 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 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.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized exceptions.
After doing the filing, the court issues a document that gives notice of a meeting of creditors and debtors. The notice will be sent to all creditors who are listed within the documents of bankruptcy. At the creditors meeting, the trustee asks the debtor a number of questions concerning bankruptcy. This includes whether information contained in the documents is accurate.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
If a debtors have non-exempt property, it is still possible for the trustee to seize and sell it. An exemption is a federal regulation which allows a debtor to have some property protected as they file for bankruptcy. For example, there is usually an exemption to protect a retirement account like 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.
