Chapter 7 Bankruptcy Can Aid a Fresh Start
"When a person returns home from work each day to find new invoices and messages from bill collectors, the situation becomes discouraging. Typically, you have been inundated by debt through no fault of your own. This may have been the result of an unexpected illness, employment loss, or excessive spending. At this juncture, the reason is less important than taking action and doing something to escape this situation. Chapter 7 bankruptcy may be an option for you.Depending on your circumstances, you may be required to submit to a'means test.' This is to determine whether you are potentially exploiting the system. Chapter 7 does not include any form of repayment plan. You are instead designated a trustee. Your nonexempt assets will be gathered and sold by the trustee, who will then use the proceeds to pay your creditors. However, you may retain a portion of your property. For instance, a trustee will not remove your clothing, kitchenware, or automobile. The trustee is interested in ""high-priced"" items. This would include a boat that is resting in your garage and that you own outright. It may involve a free-and-clear second vehicle in your household. Frequently, the fiduciary collects nothing to sell.Chapter 7 commences with the filing of a formal petition by the debtor. This is submitted with the court of bankruptcy. This document is extremely lengthy, and it would be prudent to retain an attorney to manage the paperwork. It is essential that all schedules of assets and liabilities, current income and expenses, statement of financial affairs, and other requirements are accurate to the cent. Occasionally, the paper task is difficult to comprehend and complete. At this point, a lawyer can be of tremendous assistance. The certificate of credit counseling is an additional essential document that must be filed. This document demonstrates to the court that you have completed a credit counseling course. There is a $245 court filing fee for the case. In addition, there is a $39 administration fee and a $15 trustee surcharge. Generally, these fees must be paid to the court clerk when filing the documents; however, if the court grants permission, you may pay these fees in installments.After filing the documents, you are granted a ""automatic stay."" This is meant to prevent any collection actions from being taken against you. This means creditors cannot initiate or continue wage garnishments, litigation, or annoying phone calls. Within 21 to 40 days of filing, the trustee will convene a meeting of creditors. Any creditor may attend, pose inquiries, and inquire about the circumstances. After fourteen days, the court notifies whether the case will proceed or whether there may be abuse. The bankruptcy will be discharged after a period of months if the case proceeds.
" - https://www.affordablecebu.com/
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"Chapter 7 Bankruptcy Can Aid a Fresh Start"
was written by Mary
under the Finance / Wealth
category. It has been read 110
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comments. The article was created on 03 June 2023
and updated on 03 June 2023