Bankruptcy is one of the things that make people shiver when they think about it. This is because when you reach such a point, you have everything to lose unless you find a good attorney. However, chapter 7 Monterey process is rather straightforward. You will be required to spend most of your time completing petitions about the bankruptcy, schedules, filling forms, etc. Also, you will be required to list all your debts, assets and financial transactions among others. Below are the basic steps that are involved in the bankruptcy process.
The first and most critical step is getting mandatory counseling on credit. The counseling must take place during the six months before you file for the bankruptcy. This is a law that was added in 2005 when the bankruptcy laws were revised. Hence, you must get the counseling from an approved agency by the United States office of the trustee. If you do not get a counselor, you have to notify the court to dismiss your case.
After the counseling, you are required to file the petition including other vital forms. You must file these documents before the case. The paperwork includes the petition, your financial information, a list containing your expenses and income. The court will use these forms to determine your eligibility. Thus, make sure you have included all the vital documents.
The court will then appoint the trustee that will help you with the case. Then, this professional will guide you through the case. He/she will review the documentation and distribute any nonexempt property to the creditors you have. Nevertheless, you must ensure that you are transparent and give the professional a current copy of tax returns. Then, you will be notified on when to meet the creditors by the court.
After that, your eligibility to file the case is confirmed. This is after the trustee gathers and reviews all your information. Then, the court makes a decision on your eligibility for the case. You might not be found eligible if you do not pass the means test. This means that you can afford to repay the creditors like in chapter 13.
Then, all the nonexempt property that you own will be sold so that the money is distributed to the creditors if they will be worthy. In case you may have secured any debts for which collateral backed you up, ensure you give back the property as soon as possible. The creditor can seize this property if you default.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After receiving the discharge in the mail, your bankruptcy case will be closed officially. This happens after a few days or weeks when you are granted the discharge. When the case is closed, you will no longer be held liable to all your creditors. This means that you can have a fresh start and move on with your life.
The first and most critical step is getting mandatory counseling on credit. The counseling must take place during the six months before you file for the bankruptcy. This is a law that was added in 2005 when the bankruptcy laws were revised. Hence, you must get the counseling from an approved agency by the United States office of the trustee. If you do not get a counselor, you have to notify the court to dismiss your case.
After the counseling, you are required to file the petition including other vital forms. You must file these documents before the case. The paperwork includes the petition, your financial information, a list containing your expenses and income. The court will use these forms to determine your eligibility. Thus, make sure you have included all the vital documents.
The court will then appoint the trustee that will help you with the case. Then, this professional will guide you through the case. He/she will review the documentation and distribute any nonexempt property to the creditors you have. Nevertheless, you must ensure that you are transparent and give the professional a current copy of tax returns. Then, you will be notified on when to meet the creditors by the court.
After that, your eligibility to file the case is confirmed. This is after the trustee gathers and reviews all your information. Then, the court makes a decision on your eligibility for the case. You might not be found eligible if you do not pass the means test. This means that you can afford to repay the creditors like in chapter 13.
Then, all the nonexempt property that you own will be sold so that the money is distributed to the creditors if they will be worthy. In case you may have secured any debts for which collateral backed you up, ensure you give back the property as soon as possible. The creditor can seize this property if you default.
After filing and before you are given your discharge, you have to take a financial management course. This is a requirement that was added in the year 2005 when the bankruptcy law was being amended. After that, you will get the discharge that takes three to six months after you file.
After receiving the discharge in the mail, your bankruptcy case will be closed officially. This happens after a few days or weeks when you are granted the discharge. When the case is closed, you will no longer be held liable to all your creditors. This means that you can have a fresh start and move on with your life.
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