The most common form of bankruptcy that people file is chapter 7. It is also known as liquidation or straight bankruptcy. It is what comes to the mind of most people when they think of bankruptcy. For the process, a trustee will be appointed by courts to oversee the entire process. Their role includes putting the assets of debtor on sale to be able to pay off creditors. In consideration of chapter 7 Monterey residents ought to be versed with what is involved.
Before filing of a petition, one is required to gather their financial records such as statements from the bank, loan documents, pay-stubs and credit card statements. That information is used for filling out schedules, statements of financial affairs and bankruptcy petition. The same applies to any other documents to be filed with the court. Essentially, the person will be opening up about their financial position.
Almost all persons that look to file for chapter 7 petition should go through credit counseling. The sessions are overseen by qualified credit counselors before filing of the case. The sessions need to be done in person, over the phone or online. This is very important because some debtors never have information on the options they have. Credit counselors will come up with a number of options that keep the person from bankruptcy.
When a petition is filed under chapter 7, it will stop most of the collection actions against the debtor and his or her property. Filing of the petition will however not stop some actions that are listed under bankruptcy code. Also, the stay might only be effective for a short duration in some cases. As long as the stay is in effect, a creditor may not initiate lawsuits or wage garnishments. The bankruptcy clerk will give notice of bankruptcy case to all the creditors whose addresses and names are provided by the debtor.
After some 20 to 40 days after the petition is filed, the trustee that was appointed in charge of that case holds a creditors meeting. For the meeting, debtors will be put under oath, with both creditors and the trustee asking questions. The debtor has to attend the meeting to answer any arising questions.
If a petition is field jointly by a husband and wife, they are required to both attend the meeting of creditors. Ten days after the meeting, the trustee is supposed to issue a report to the courts. They will give a report whether that case can be assumed as an abuse to court processes considering what is stipulated in the means test. The test will determine how eligible one is for filing of cases under chapter 7.
It is very important that debtors cooperate with trustees and offer all financial records and documents which are requested. The debtor is asked questions during the meeting so that it is confirmed they are aware of potential consequences of seeking discharge in bankruptcy.
Individuals should seek professional advice when they are filing for chapter 7. It can be from a trusted friend or legal practitioner. As a matter of fact, it is best to have an attorney oversee the process.
Before filing of a petition, one is required to gather their financial records such as statements from the bank, loan documents, pay-stubs and credit card statements. That information is used for filling out schedules, statements of financial affairs and bankruptcy petition. The same applies to any other documents to be filed with the court. Essentially, the person will be opening up about their financial position.
Almost all persons that look to file for chapter 7 petition should go through credit counseling. The sessions are overseen by qualified credit counselors before filing of the case. The sessions need to be done in person, over the phone or online. This is very important because some debtors never have information on the options they have. Credit counselors will come up with a number of options that keep the person from bankruptcy.
When a petition is filed under chapter 7, it will stop most of the collection actions against the debtor and his or her property. Filing of the petition will however not stop some actions that are listed under bankruptcy code. Also, the stay might only be effective for a short duration in some cases. As long as the stay is in effect, a creditor may not initiate lawsuits or wage garnishments. The bankruptcy clerk will give notice of bankruptcy case to all the creditors whose addresses and names are provided by the debtor.
After some 20 to 40 days after the petition is filed, the trustee that was appointed in charge of that case holds a creditors meeting. For the meeting, debtors will be put under oath, with both creditors and the trustee asking questions. The debtor has to attend the meeting to answer any arising questions.
If a petition is field jointly by a husband and wife, they are required to both attend the meeting of creditors. Ten days after the meeting, the trustee is supposed to issue a report to the courts. They will give a report whether that case can be assumed as an abuse to court processes considering what is stipulated in the means test. The test will determine how eligible one is for filing of cases under chapter 7.
It is very important that debtors cooperate with trustees and offer all financial records and documents which are requested. The debtor is asked questions during the meeting so that it is confirmed they are aware of potential consequences of seeking discharge in bankruptcy.
Individuals should seek professional advice when they are filing for chapter 7. It can be from a trusted friend or legal practitioner. As a matter of fact, it is best to have an attorney oversee the process.
About the Author:
Get a summary of the factors to consider when choosing a Chapter 7 Monterey lawyer and more information about an experienced attorney at http://www.centralcoastbankruptcy.com now.
