Chapter 7 is the single most common form of bankruptcy that is filed in the United States. It is also known as straight bankruptcy. It is what most people think about when the term bankruptcy comes to mind. A court will appoint a trustee to oversee the case. One of the roles of the trustee will be to take over assets of the person involved, have them sold and distribute the money gotten to creditors. In considering chapter 7 Salt Lake City Utah residents need to know what it involves.
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.
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 have to pass a means test calculation. It is a document that is supposed to be also completed before filing for bankruptcy. It is a test that was added to bankruptcy code in 2005. It calculates whether you can pay some portion of your debts. It does compare the income of the debtor with the median income of that state. If one fails the mean test, they will only be able to do filing under 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.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 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.
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 have to pass a means test calculation. It is a document that is supposed to be also completed before filing for bankruptcy. It is a test that was added to bankruptcy code in 2005. It calculates whether you can pay some portion of your debts. It does compare the income of the debtor with the median income of that state. If one fails the mean test, they will only be able to do filing under 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.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 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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