Chapter 7 is the commonest type of bankruptcy that most people file for in the United States. The other name is straight bankruptcy. It is what people have in mind when talking about going bankruptcy. In short, a court will appoint a trustee who oversees the case. The trustee takes assets of the debtor, gets them to be sold and uses the money that arises to pay creditors. In consideration of chapter 7 Salt Lake City Utah residents can benefit from some information.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is accurate.
Trustees may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
If a debtors have non-exempt property, it is still possible for the trustee to seize and sell it. An exemption is a federal regulation which allows a debtor to have some property protected as they file for bankruptcy. For example, there is usually an exemption to protect a retirement account like 401k plan.
Before a debtor receives discharge, they would need to take courses in financial management. It is a class that is likely to be given by same people that gave credit counselling. It is important to spend one and a half hours in person, on telephone or online.
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 filing is done, a court issues some document to give notice of meeting between the debtor and creditors. The notice is circulated to all creditors that are listed in the bankruptcy documents. At that meeting, a trustee will ask questions that are related to the bankruptcy. One of the things they will seek to know is whether all the provided information is accurate.
Trustees may also ask other questions related to the financial affairs of the debtor. In case a trustee wants to make further investigations on the bankruptcy, they may organize for a further meeting of creditors. At the meetings of creditors, any creditor can come and ask a debtor questions. In reality however, the only ones who normally appear are car creditors and IRS.
If a debtors have non-exempt property, it is still possible for the trustee to seize and sell it. An exemption is a federal regulation which allows a debtor to have some property protected as they file for bankruptcy. For example, there is usually an exemption to protect a retirement account like 401k plan.
Before a debtor receives discharge, they would need to take courses in financial management. It is a class that is likely to be given by same people that gave credit counselling. It is important to spend one and a half hours in person, on telephone or online.
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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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