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 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.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the 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 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 can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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 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.
Almost all individual debtors who look to file for chapter 7 cases must take part in sessions with approved and licensed credit counselors before filing of the case. The session can be done in person, over telephone or online. This is important because there are potential debtors who do not know their options. Counselors will also be able to suggest any other alternatives which can be used instead of bankruptcy. This ensures that before one does the filing, they know the 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 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 can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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 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.
