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.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
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 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.
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 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.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
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 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.
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 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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