Many people who find themselves in a financial situation where they are contemplating liquidation wonder exactly what Chapter 7 is. It is the most common bankruptcy chapter filed in the U. S. It is named Chapter 7 as that is the chapter of the Bankruptcy Code it falls under.
It is also known as liquidation bankruptcy. Chapter 7 bankruptcy Louisiana is when a debtor's assets that have not been exempted are sold by a trustee. The proceeds obtained from the sale of the assets are used to settle outstanding creditors' amounts.
Before you start your petition, you should make sure that you have all the required documents available. These include reports like payslips, bank statements, credit card statements, loan agreements and anything else you may need for the completion of the petition. The information that you supply in the petition documents should be the same as those listed in your financial reports.
You will require a huge amount of documents when you do the filing. The documents are obtainable in package form from the bankruptcy clerk of the court's offices. You may be required to pay a certain fee to obtain it. These documents will include a statement of your financial affairs and a schedule of assets and liabilities. You will need to open your financial life to the court. This means listing all your income, property, expenses, property transfers and debts. Once completed, you need to file it with the clerk of the court. At this stage, a fee is payable for the filing.
It is necessary to pass a means test. This should be done prior to the filing. The test is used to determine if you have sufficient means to settle your creditors. If you should fail the test, you will need to fall into a special category to be able to file under this chapter of the bankruptcy code.
Once the petition has been filed, the court will issue a notice calling for a meeting of creditors. The notice is dispatched to all the creditors listed in the documents. During this meeting, the trustee will question you about your financial affairs. If the trustee is dissatisfied with the answers received, he or she has the right to postpone the meeting of creditors pending further investigation into your financial affairs. At this meeting, the creditors are also allowed to ask you questions related to your financial affairs.
The trustee is able to take possession of non-exempt property you own and sell it to raise funds. There are certain types of property that are exempt from seizure. For example, you are able to retain your retirement accounts. The list of exempt property has to be stated in Schedule C of the petition documents you include in your filing. Any assets and funds taken by the trustee will be used for distribution among your creditors.
The court will order a discharge of your debts about 60 days after the first meeting of creditors, if no objections had been raised by the trustee or the creditors. This order protects you from any further legal action by your creditors. You should bear in mind that not all your debt obligations will be discharged.
It is also known as liquidation bankruptcy. Chapter 7 bankruptcy Louisiana is when a debtor's assets that have not been exempted are sold by a trustee. The proceeds obtained from the sale of the assets are used to settle outstanding creditors' amounts.
Before you start your petition, you should make sure that you have all the required documents available. These include reports like payslips, bank statements, credit card statements, loan agreements and anything else you may need for the completion of the petition. The information that you supply in the petition documents should be the same as those listed in your financial reports.
You will require a huge amount of documents when you do the filing. The documents are obtainable in package form from the bankruptcy clerk of the court's offices. You may be required to pay a certain fee to obtain it. These documents will include a statement of your financial affairs and a schedule of assets and liabilities. You will need to open your financial life to the court. This means listing all your income, property, expenses, property transfers and debts. Once completed, you need to file it with the clerk of the court. At this stage, a fee is payable for the filing.
It is necessary to pass a means test. This should be done prior to the filing. The test is used to determine if you have sufficient means to settle your creditors. If you should fail the test, you will need to fall into a special category to be able to file under this chapter of the bankruptcy code.
Once the petition has been filed, the court will issue a notice calling for a meeting of creditors. The notice is dispatched to all the creditors listed in the documents. During this meeting, the trustee will question you about your financial affairs. If the trustee is dissatisfied with the answers received, he or she has the right to postpone the meeting of creditors pending further investigation into your financial affairs. At this meeting, the creditors are also allowed to ask you questions related to your financial affairs.
The trustee is able to take possession of non-exempt property you own and sell it to raise funds. There are certain types of property that are exempt from seizure. For example, you are able to retain your retirement accounts. The list of exempt property has to be stated in Schedule C of the petition documents you include in your filing. Any assets and funds taken by the trustee will be used for distribution among your creditors.
The court will order a discharge of your debts about 60 days after the first meeting of creditors, if no objections had been raised by the trustee or the creditors. This order protects you from any further legal action by your creditors. You should bear in mind that not all your debt obligations will be discharged.
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