Procedures For Filing Chapter 7 Bankruptcy
Unlike filing chapter 13 bankruptcy, the Chapter 7 bankruptcy would be a liquidation process once the debts are rising immensely. Those who have possession of some non-exempt assets would see the assets being sold by the Chapter 7 trustee. The proceeds would then be dispersed to the creditors as per specified in the Bankruptcy Code. Chapter 7 would be the most simplified and quickest type of bankruptcy to move forward with. With bankruptcy counseling, anyone concerned like corporations, partnerships, individuals and married couples use can make use of filing bankruptcy the right way. Online search would be a good tool to get more information on bankruptcy attorneys.
Are you looking to avail free bankruptcy services to tackle the issue of rising debts? The “means test” has to be passed before filing Chapter 7 bankruptcy to gauge the exact income of the debtors. Only that person whose income is less than or equal to the state average income can pass the test to file Chapter 7 bankruptcy. In case of failing to get through the test, you have the provision to file chapter 13 bankruptcy to move ahead.
Procedures Involved In Filing Chapter 7 Bankruptcy
- The Chapter 7 bankruptcy would kick off by filing the official petition, schedules and report of financial matters to include the assets, debts and recent financial history.
- Attending a meeting of creditors, also known as the section 341 meeting would be the second step. The trustee often seeks information of your assets and liabilities to validate the claim of bankruptcy.
- The trustee will seize any non-exempt assets to further sell it and apply the income to the expenses. More so, the creditors would be distributed all the leftover funds.
- The trustee and creditors are offered a 60-day period to dispute the right to a discharge. As a requirement to the discharge, a financial training course has to be finished from a certified source.
Samuel Jackson is a regular writer on Bankruptcyonly.com, a US based portal, which provides detailed information on Free Bankruptcy Services, Personal Bankruptcy Information and other Chapter 13 bankruptcy help related issues.
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