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 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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information 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.
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 debtors receive discharge, a course in financial management will be required. The class is likely to get offered by same individuals that offer credit counseling. The advisable time is one and a half hours, which can be done through phone or in person.
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 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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information 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.
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 debtors receive discharge, a course in financial management will be required. The class is likely to get offered by same individuals that offer credit counseling. The advisable time is one and a half hours, which can be done through phone or in person.
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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.