Chapter 7 Salt Lake City Utah
Chapter 7 is arguably the commonest form of bankruptcy that individuals file in the Unites States. Its other name is straight bankruptcy. It is the option that comes to the mind of people that are considering filing for bankruptcy. In a nutshell, there is appointment of a trustee by the court who will oversee the case. Among the roles of trustees is to take over all agreed assets, selling them and distributing money obtained to creditors. When considering filing for chapter 7 Salt Lake City Utah residents should know requirements.
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.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized 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.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 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.
Most of individuals who seek to file for chapter 7 are supposed to set up sessions with approved credit counselors. This is to happen before they file. The session can be attended in person, through phone calls or through online sessions. The sessions are important because there are debtors who are not versed with what is involved. A counselor will also tell you other available options. When the sessions are done, one will know implications of the process.
A debtor will also be required to pass a means test calculation. This is normally also a document that one completes before they get to file for bankruptcy. It is a test that was introduced in the year 2005. It is used to calculate whether the debtor is able to pay off some portion of their debts. It makes comparison of their income against the median of the state. If one fails it, they can only apply for bankruptcy under specialized 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.
A trustee can also ask additional questions that are related to financial status of a debtor. There are instances when there is need for additional investigations, in which case the trustee will set up more meetings. For the creditors meeting, you should expect any creditor to come and ask their questions. In most cases however, the creditors that turn up are IRS and car creditors.
In case a debtor has property that is non-exempt, trustees can seize them and sell them. An exemption is a federal statute which allows you to protect certain assets as you file. For instance, there is an exemption to protect such retirements accounts as 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.
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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.