Bankruptcy is one of the things that make people shiver when they think about it. This is because when you reach such a point, you have everything to lose unless you find a good attorney. However, chapter 7 Monterey process is rather straightforward. You will be required to spend most of your time completing petitions about the bankruptcy, schedules, filling forms, etc. Also, you will be required to list all your debts, assets and financial transactions among others. Below are the basic steps that are involved in the bankruptcy process.
The first and most critical step is getting mandatory counseling on credit. The counseling must take place during the six months before you file for the bankruptcy. This is a law that was added in 2005 when the bankruptcy laws were revised. Hence, you must get the counseling from an approved agency by the United States office of the trustee. If you do not get a counselor, you have to notify the court to dismiss your case.
After that, you are supposed to file all the essential forms including the petition. This should be done before the case begins. The forms you will submit include a bankruptcy petition, financial information as well as a list of your income and expenses. These forms will be sued to determine whether you can win the bankruptcy case or not.
Then, the trustee takes over after you file the forms with the court. The court then appoints a trustee to handle the entire case for you. The trustee will then review your paperwork then distribute your nonexempt property to your creditors. Also, you must provide the trustee with a copy of your recent tax return. Then, the court will notify you when your meeting with the creditors will take place.
Then, your eligibility will be determined by the court. This is after the trustee takes a look at your documentation. Then, the court will decide your eligibility. In case you are found illegible, it is because you may have failed a test called means test. This test is done by comparing your expenses. Hence, you will be considered capable of repayment according to chapter 13.
Then, all the nonexempt property that you own will be sold so that the money is distributed to the creditors if they will be worthy. In case you may have secured any debts for which collateral backed you up, ensure you give back the property as soon as possible. The creditor can seize this property if you default.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After receiving the discharge in the mail, your bankruptcy case will be closed officially. This happens after a few days or weeks when you are granted the discharge. When the case is closed, you will no longer be held liable to all your creditors. This means that you can have a fresh start and move on with your life.
The first and most critical step is getting mandatory counseling on credit. The counseling must take place during the six months before you file for the bankruptcy. This is a law that was added in 2005 when the bankruptcy laws were revised. Hence, you must get the counseling from an approved agency by the United States office of the trustee. If you do not get a counselor, you have to notify the court to dismiss your case.
After that, you are supposed to file all the essential forms including the petition. This should be done before the case begins. The forms you will submit include a bankruptcy petition, financial information as well as a list of your income and expenses. These forms will be sued to determine whether you can win the bankruptcy case or not.
Then, the trustee takes over after you file the forms with the court. The court then appoints a trustee to handle the entire case for you. The trustee will then review your paperwork then distribute your nonexempt property to your creditors. Also, you must provide the trustee with a copy of your recent tax return. Then, the court will notify you when your meeting with the creditors will take place.
Then, your eligibility will be determined by the court. This is after the trustee takes a look at your documentation. Then, the court will decide your eligibility. In case you are found illegible, it is because you may have failed a test called means test. This test is done by comparing your expenses. Hence, you will be considered capable of repayment according to chapter 13.
Then, all the nonexempt property that you own will be sold so that the money is distributed to the creditors if they will be worthy. In case you may have secured any debts for which collateral backed you up, ensure you give back the property as soon as possible. The creditor can seize this property if you default.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After receiving the discharge in the mail, your bankruptcy case will be closed officially. This happens after a few days or weeks when you are granted the discharge. When the case is closed, you will no longer be held liable to all your creditors. This means that you can have a fresh start and move on with your life.
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