Chapter 7 is the commonest type of bankruptcy that most people file for in the United States. The other name is straight bankruptcy. It is what people have in mind when talking about going bankruptcy. In short, a court will appoint a trustee who oversees the case. The trustee takes assets of the debtor, gets them to be sold and uses the money that arises to pay creditors. In consideration of chapter 7 Salt Lake City Utah residents can benefit from some information.
Before the case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other 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 the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are 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 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 case is filed, it is a requirement that financial records are gathered which include loan documents, bank statements, credit card statements and pay stubs. It is this information that will be used for filling out necessary schedules, financial affairs statements and bankruptcy petition. They also help out filling out other 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 the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are 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 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.
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