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.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
Courts exercise their control through court-appointed persons known as trustees. The primary duty of a trustee is to ensure that creditors are paid what they are owed. The more assets that a trustee gets to recover from creditors, the more they will be paid. Trustees examine the papers to ensure they are complete. They will also be on the lookout for non-exempt property to be sold for benefit of 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.
In order to file for chapter 7, there is a petition to be filled out and various other forms. They are filled at a court that deals with bankruptcy. The form requires a number of details that include monthly expenses and current income. You will also be required to declare your debts and all property owned in the last 2 years. When you file for the bankruptcy, it puts into effect what is referred to as automatic stay. An automatic stay stops creditors from collecting whatever you owe them.
When one files for chapter 7, they technically place their property in the hands of the court. That means one will not be allowed to sell or give away what they own. Such property can only be given away with the consent of court. In some cases however, you will be allowed to control whatever property that you get after filing for the bankruptcy.
Courts exercise their control through court-appointed persons known as trustees. The primary duty of a trustee is to ensure that creditors are paid what they are owed. The more assets that a trustee gets to recover from creditors, the more they will be paid. Trustees examine the papers to ensure they are complete. They will also be on the lookout for non-exempt property to be sold for benefit of 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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