Bankruptcy is one of the things that make people shiver when they think about it. This is because when you reach such a point, you have everything to lose unless you find a good attorney. However, chapter 7 Monterey process is rather straightforward. You will be required to spend most of your time completing petitions about the bankruptcy, schedules, filling forms, etc. Also, you will be required to list all your debts, assets and financial transactions among others. Below are the basic steps that are involved in the bankruptcy process.
To begin with, you must be ready to get credit counseling from an agency that the United States will approve. This counseling is mandatory according to the bankruptcy law that was reviewed in 2005. Hence, you have to find an agency that is approved to counsel you. If you fail to get the training, you should notify the court. The court will then dismiss your case. These agents can, however, be found through their websites.
Then, you need to file your petition and other necessary forms. This is mandatory before you start your case. The forms and documents will include the bankruptcy petition, financial information, and forms in which you will list your income as well as expenses. All these forms will determine whether you will win the case or not.
Then, the trustee takes over after you file the forms with the court. The court then appoints a trustee to handle the entire case for you. The trustee will then review your paperwork then distribute your nonexempt property to your creditors. Also, you must provide the trustee with a copy of your recent tax return. Then, the court will notify you when your meeting with the creditors will take place.
After this, you will be determined whether you are eligible for the case or not. This happens after the trustee reviews all the information you provided. The court will then decide on your eligibility. If you fail the means test, it means that you are not eligible. Thus, you will have to repay your creditors as in chapter 13.
If you have any nonexempt property, it is worth will be calculated. If the property is worthy, it will be sold. Then, your creditors will be given the money. If it chances that you have secured any debts that have been backed by some collateral, you are advised to return the property before the creditors seize it.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After this period, the court will send you a mail notifying you that you have been discharged. The case will then be closed officially after a few weeks. At this point, no creditor will hold you liable for any of their debts. Thus, this is an excellent chance to have a new beginning.
To begin with, you must be ready to get credit counseling from an agency that the United States will approve. This counseling is mandatory according to the bankruptcy law that was reviewed in 2005. Hence, you have to find an agency that is approved to counsel you. If you fail to get the training, you should notify the court. The court will then dismiss your case. These agents can, however, be found through their websites.
Then, you need to file your petition and other necessary forms. This is mandatory before you start your case. The forms and documents will include the bankruptcy petition, financial information, and forms in which you will list your income as well as expenses. All these forms will determine whether you will win the case or not.
Then, the trustee takes over after you file the forms with the court. The court then appoints a trustee to handle the entire case for you. The trustee will then review your paperwork then distribute your nonexempt property to your creditors. Also, you must provide the trustee with a copy of your recent tax return. Then, the court will notify you when your meeting with the creditors will take place.
After this, you will be determined whether you are eligible for the case or not. This happens after the trustee reviews all the information you provided. The court will then decide on your eligibility. If you fail the means test, it means that you are not eligible. Thus, you will have to repay your creditors as in chapter 13.
If you have any nonexempt property, it is worth will be calculated. If the property is worthy, it will be sold. Then, your creditors will be given the money. If it chances that you have secured any debts that have been backed by some collateral, you are advised to return the property before the creditors seize it.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After this period, the court will send you a mail notifying you that you have been discharged. The case will then be closed officially after a few weeks. At this point, no creditor will hold you liable for any of their debts. Thus, this is an excellent chance to have a new beginning.
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