It is important for one to be versed with what chapter 7 involves. There is the initial consultation that is very critical and can last for 2 to 4 hours. You are usually required to come with all the necessary documents. The benefit of the consultation is that it will help you to understand what the effects of your decision are, the benefits and disadvantages. The consultation will also help in understanding other options that might be there. In consideration of chapter 7 Monterey residents can benefit from some tips.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
The process takes about 6 months and will cost hundreds of dollars. The fees are incurred in administrative costs, plus there will be the need to visit a court house. In addition, it is a requirement that you complete credit counseling with an agency that is approved. Not everyone qualifies though. For instance, if you already received bankruptcy discharge in the last 8 years or so, you might not qualify. The same applies to those whose income, expenses and debt burden mean they qualify for other options.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
Courts exercise their control through court-appointed persons known as trustees. The primary duty of a trustee is to ensure that creditors are paid what they are owed. The more assets that a trustee gets to recover from creditors, the more they will be paid. Trustees examine the papers to ensure they are complete. They will also be on the lookout for non-exempt property to be sold for benefit of creditors.
The other obligation of a trustee is to examine financial transactions for the past years. That is done to know whether there are is anything which can be undone to free assets. In majority of the cases, trustees do not find anything which can be sold.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
The process takes about 6 months and will cost hundreds of dollars. The fees are incurred in administrative costs, plus there will be the need to visit a court house. In addition, it is a requirement that you complete credit counseling with an agency that is approved. Not everyone qualifies though. For instance, if you already received bankruptcy discharge in the last 8 years or so, you might not qualify. The same applies to those whose income, expenses and debt burden mean they qualify for other options.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
Courts exercise their control through court-appointed persons known as trustees. The primary duty of a trustee is to ensure that creditors are paid what they are owed. The more assets that a trustee gets to recover from creditors, the more they will be paid. Trustees examine the papers to ensure they are complete. They will also be on the lookout for non-exempt property to be sold for benefit of creditors.
The other obligation of a trustee is to examine financial transactions for the past years. That is done to know whether there are is anything which can be undone to free assets. In majority of the cases, trustees do not find anything which can be sold.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
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