It is important for one to be versed with what chapter 7 involves. There is the initial consultation that is very critical and can last for 2 to 4 hours. You are usually required to come with all the necessary documents. The benefit of the consultation is that it will help you to understand what the effects of your decision are, the benefits and disadvantages. The consultation will also help in understanding other options that might be there. In consideration of chapter 7 Monterey residents can benefit from some tips.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
The process takes about 6 months and will cost hundreds of dollars. The fees are incurred in administrative costs, plus there will be the need to visit a court house. In addition, it is a requirement that you complete credit counseling with an agency that is approved. Not everyone qualifies though. For instance, if you already received bankruptcy discharge in the last 8 years or so, you might not qualify. The same applies to those whose income, expenses and debt burden mean they qualify for other options.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
Filing for this bankruptcy means that you are technically placing your property at the hands of the court. That means you are not allowed to sell or give away whatever you own unless the consent is granted by the court. With some exception though, you will be allowed to you will be allowed to do whatever you want with property that is earned after you get to file for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit 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.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
It is a must that one goes for credit counseling prior to commencement of the process. The debtor should attend credit counseling, which should be within 6 months of filing for bankruptcy. The counseling sessions are handled by qualified and authorized individuals. After the course is complete, a certificate is provided. People need to understand the finer details of chapter 7.
The process takes about 6 months and will cost hundreds of dollars. The fees are incurred in administrative costs, plus there will be the need to visit a court house. In addition, it is a requirement that you complete credit counseling with an agency that is approved. Not everyone qualifies though. For instance, if you already received bankruptcy discharge in the last 8 years or so, you might not qualify. The same applies to those whose income, expenses and debt burden mean they qualify for other options.
For one to file for chapter 7, there is need to fill out a petition and various other forms, which will need to be filed at the bankruptcy court. The form asks for a number of details like property, current income and monthly expenses, debts and property owned in the last two years. Filing for the bankruptcy will put into effect what is known as automatic stay. The stay will stop most of the creditors from collecting what they are owed.
Filing for this bankruptcy means that you are technically placing your property at the hands of the court. That means you are not allowed to sell or give away whatever you own unless the consent is granted by the court. With some exception though, you will be allowed to you will be allowed to do whatever you want with property that is earned after you get to file for bankruptcy.
The courts will exercise their control through trustees who are appointed by them. The main role of trustees is to ensure that creditors get paid whatever they are owed. The more the assets which trustees recover from creditors, the more they get to be paid. A trustee will examine all papers before him to ensure they are accurate. They look out for any nonexempt property which can be sold so as to benefit 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.
A week after filing is done, creditors will be required to meet. It is trustees that run the meeting. They use the meetings to get any required clarifications.
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