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Chapter 7 Insolvency Procedure

Chapter 7 Insolvency Procedure
"""An important query for those contemplating Chapter 7 bankruptcy is, """"What is the Chapter 7 bankruptcy process?""""

Filing for bankruptcy is a complex process with strict time constraints. Without delving into detail and providing a brief overview, the Chapter 7 bankruptcy filing procedure is as follows:

You are required to receive credit counseling from an approved credit counseling agency, either individually or in a group setting.

2.You file a petition and supporting documents with the bankruptcy court that serves your district, along with the filing fee. In rare instances, the filing charge may be paid in installments or even waived with court approval.

3. The court appoints a Chapter 7 bankruptcy trustee (known as a bankruptcy administrator in Alabama and North Carolina). The trustee will examine all of the filed documents and may request additional information.

The Chapter 7 trustee will conduct a creditors' meeting. During this meeting, the trustee will administer an oath and you will be required to answer inquiries about your assets and financial affairs posed by the trustee and your creditors.

You may file a motion to reaffirm the debt(s) if you meet the requirements and wish to reaffirm one or more debts. If you wish to avoid certain property liens or certain judgment liens, you can file a motion with the bankruptcy court to do so.

6. If the trustee determines that your case is a """"no asset"""" case, you are no longer involved unless something unusual or unanticipated occurs.

7. If the trustee determines that your case is a """"asset"""" case and that certain property must be sold or certain funds must be recovered, the trustee will take whatever action(s) he considers appropriate and then distribute the net proceeds to your creditors.

If your case is a """"no assets"""" case, the bankruptcy court will generally issue a discharge order between 60 and 90 days after the date of the meeting of creditors. If your case is a """"asset"""" case, the bankruptcy court will issue a discharge order once the trustee has concluded all of his duties.

This is commonplace knowledge. Consult an attorney licensed in your state if you require specific information or have any queries of any kind.

This article may be republished with no changes to the language or author connections.

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"Chapter 7 Insolvency Procedure" was written by Mary under the Finance / Wealth category. It has been read 112 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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