Chapter 7 Salt Lake City Utah
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.
The majority of people seeking to file for chapter 7 need to take part in counseling with licensed and approved credit counselors. It is a session can be done in person, online or over the phone. It is very crucial since there are potential debtors without proper knowledge of their options. When you deal with a counselor, they can also suggest alternatives that can be used in place of bankruptcy. It will ensure that before you file, you are well versed with its 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 the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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 discharge is received by the debtor, a course in financial management is needed. The class will most probably be taken by credit counselors. It is advisable to spend one and a half hours for the classes, either in person or through telephone.
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.
The majority of people seeking to file for chapter 7 need to take part in counseling with licensed and approved credit counselors. It is a session can be done in person, online or over the phone. It is very crucial since there are potential debtors without proper knowledge of their options. When you deal with a counselor, they can also suggest alternatives that can be used in place of bankruptcy. It will ensure that before you file, you are well versed with its 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 the filing is done, there is issuance of a document by the court to give notice of meeting between debtors and creditors. This notice is circulated to all creditors listed in the documents. During the meeting, a debtor is asked several questions regarding bankruptcy. The most important thing perhaps is seeking to know whether documents filed are accurate.
Trustees can also ask a number of other questions as concerns financial affairs of debtors. If there is need to make additional investigations related to the bankruptcy, additional meetings will be set up. For the meeting with creditors, any other creditor can turn up and ask questions. In most cases though, only car creditors and IRS will be present for the meeting.
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 discharge is received by the debtor, a course in financial management is needed. The class will most probably be taken by credit counselors. It is advisable to spend one and a half hours for the classes, either in person or through telephone.
About the Author:
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.
posted by Vittoria @ March 17, 2018
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home