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Chapter 7 is the most common form of bankruptcy that is filed. It can also be referred to as liquidation or straight bankruptcy. It is actually what the majority of people think about when the word bankruptcy comes to mind. For this process, there is appointment of a trustee by the court who will oversee the case. Part of their role is taking assets of the person and selling them to pay creditors. When considering chapter 7 Monterey residents need to know what is involved.
Before one gets to file for petitions, you will be supposed to gather useful financial statements from their bank, loan documents and credit card statements. The information will be useful for filing out of statements of financial affairs and schedules. The same will apply to all other documents to be filed in court. In essence, the person should open up about their situation financially.
Almost all people that want to file for chapter 7 cases need to participate in credit counseling. The sessions are usually done by approved credit counselors before cases can be filed. The sessions are done in person, online or over the phone. This is usually important because there are potential debtors without information of the options that they have. Credit counselors can suggest alternatives which can keep the person out of bankruptcy.
When petitions are filed under chapter 7, it stops most collection actions against debtors and their property. It does not however stop some actions which are listed in the bankruptcy code. In addition, the stay orders could only be effective for a short time in some instances. As long as stay orders are in effect, creditors are not to initiate lawsuits or even wage garnishments. The clerk in charge will give notice of bankruptcy to creditors whose addresses and names have been provided by the debtor.
Some 20 to 40 days after filing of the petition, the trustee in charge of the case will hold a meeting with creditors. For that meeting, debtors are put under oath and both the trustee and creditors can ask questions. The meeting has to be attended by the debtor so that they answer any questions that arise.
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 one gets to file for petitions, you will be supposed to gather useful financial statements from their bank, loan documents and credit card statements. The information will be useful for filing out of statements of financial affairs and schedules. The same will apply to all other documents to be filed in court. In essence, the person should open up about their situation financially.
Almost all people that want to file for chapter 7 cases need to participate in credit counseling. The sessions are usually done by approved credit counselors before cases can be filed. The sessions are done in person, online or over the phone. This is usually important because there are potential debtors without information of the options that they have. Credit counselors can suggest alternatives which can keep the person out of bankruptcy.
When petitions are filed under chapter 7, it stops most collection actions against debtors and their property. It does not however stop some actions which are listed in the bankruptcy code. In addition, the stay orders could only be effective for a short time in some instances. As long as stay orders are in effect, creditors are not to initiate lawsuits or even wage garnishments. The clerk in charge will give notice of bankruptcy to creditors whose addresses and names have been provided by the debtor.
Some 20 to 40 days after filing of the petition, the trustee in charge of the case will hold a meeting with creditors. For that meeting, debtors are put under oath and both the trustee and creditors can ask questions. The meeting has to be attended by the debtor so that they answer any questions that arise.
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.
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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.
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