It is important to understand what is involved in chapter 7 bankruptcy. There is usually the initial consultation which is very important. It can last between 2 to 4 hours. You are supposed to bring all relevant documents for the consultation. The consultation helps you to understand effects of the decision, the pros and cons. There will also be discussion on non-bankruptcy options. When considering filing for chapter 7 Monterey residents need to be versed with the process that is involved.
Credit counseling is mandatory before the process starts. The debtor is required to complete a credit counseling course within 6 months after filing the bankruptcy. The classes are handled by authorized service providers. After completion of the course, there is a certificate that is provided. It is important that when considering application for this bankruptcy, they get to understand what steps are involved.
In general, the process takes about 6 months and will cost hundreds of dollars. The charges are to cater for administrative costs. One will also need to go to court. The other requirement is that you will be required to go for credit counseling, which should be with a agency that is authorized. For example, in case you did already receive bankruptcy discharge within the last 8 years then you shall not disqualify. The other group of people that do not qualify are those with less income.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
Filing for this bankruptcy means that you are technically placing your property at the hands of the court. That means you are not allowed to sell or give away whatever you own unless the consent is granted by the court. With some exception though, you will be allowed to you will be allowed to do whatever you want with property that is earned after you get to file for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit creditors.
Trustees also have the responsibility of examining your financial transactions for the previous year to check whether there is anything that can be undone to have assets freed up. In most cases however, trustees never find anything of value that can be sold.
One week after filing, there is scheduling of creditors meeting. The meeting is run by a trustee. The trustee uses the meeting to ask questions and clarification on issues.
Credit counseling is mandatory before the process starts. The debtor is required to complete a credit counseling course within 6 months after filing the bankruptcy. The classes are handled by authorized service providers. After completion of the course, there is a certificate that is provided. It is important that when considering application for this bankruptcy, they get to understand what steps are involved.
In general, the process takes about 6 months and will cost hundreds of dollars. The charges are to cater for administrative costs. One will also need to go to court. The other requirement is that you will be required to go for credit counseling, which should be with a agency that is authorized. For example, in case you did already receive bankruptcy discharge within the last 8 years then you shall not disqualify. The other group of people that do not qualify are those with less income.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
Filing for this bankruptcy means that you are technically placing your property at the hands of the court. That means you are not allowed to sell or give away whatever you own unless the consent is granted by the court. With some exception though, you will be allowed to you will be allowed to do whatever you want with property that is earned after you get to file for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit creditors.
Trustees also have the responsibility of examining your financial transactions for the previous year to check whether there is anything that can be undone to have assets freed up. In most cases however, trustees never find anything of value that can be sold.
One week after filing, there is scheduling of creditors meeting. The meeting is run by a trustee. The trustee uses the meeting to ask questions and clarification on issues.
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