Facts About Chapter 7 Of The Bankruptcy Law
http://www.lawsays.net/articles/7644/1/Facts-About-Chapter-7-Of-The-Bankruptcy-Law/Page1.html
alona Rudnitsky
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By alona Rudnitsky
Published on 05/11/2011
The global crisis which could not get back to normalcy has put many people to severe financial crisis. There are lots of business establishments that close operations. Even different individuals were plagued with the same problem. Thinking of solutions, these people resort to the filing of bankruptcy.
The global crisis which could not get back to normalcy has put many people to severe financial crisis. There are lots of business establishments that close operations. Even different individuals were plagued with the same problem. Thinking of solutions, these people resort to the filing of bankruptcy. This may be the ultimate step but it does not necessarily mean that the end of the financial problem is solved.
It is not easy to claim bankruptcy per se. You will need the counsel of a legally trained person and this should be the attorney. This expert can file for your bankruptcy and at the same time can be your ally in your fight against creditors.
Bankruptcy law takes many phases and different chapters. The most common is actually the Chapter 7 bankruptcy. This will require you - the debtor to collate all your non-exempt properties and such will be sold. The proceeds will all be used to repay as much of the unsecured debts.
In the event your lawyer files for bankruptcy, you as debtor will be required to appear to the local Federal Bankruptcy Court. The filing of the petition will be done here. Without the legal counsel, you might find it hard to accomplish this. In the petition, you have to prepare a statement of your assets and debts. You have to be sure that all assets under your name should be divulged. When you file for Chapter 7 bankruptcy and you have kept some of your properties, you are easily liable to misrepresentation which will ultimately be the ground for the dismissal of your case.
When your legal counsel had already filed the request you will be subjected to an automatic stay. Soon that this takes effect, lenders of the bankrupt family cannot exercise collection of the debts. The only alternative available to the creditors is to convince the court of the damage done to them by automatic stay. A bankruptcy judge will be assigned to help you by appointing a trustee. This person will have the following duties. First, he has to review the debtor's statement of assets. He will also take charge of the sale of the non-exempt properties. Finally, the trustee will undertake to distribute the proceeds to the lenders under the guidance of the Bankruptcy Code.
Another thing to happen after the filing of the petition is a meeting with the creditors which can be scheduled any day between 20 to 40 days holding period. The assigned trustee will next schedule for a 341 meeting. It is only during this meeting that the creditor is allowed to meet eye to eye with the debtor. Questions and answers, analysis of the situation will transpire during this meeting.
All queries that will next transpire will be in the form of a sworn statement to be executed by the debtor. Every fact found to be untrue will carry the penalty of perjury. The last step in the filing of bankruptcy is the discharge of all debts which will make the debtor free from obligations to the creditors. Once chapter 7 is culminated, you as the filer are now barred from filing another bankruptcy case under Chapter7 Bankruptcy for a period of 6 years.
It is not easy to claim bankruptcy per se. You will need the counsel of a legally trained person and this should be the attorney. This expert can file for your bankruptcy and at the same time can be your ally in your fight against creditors.
Bankruptcy law takes many phases and different chapters. The most common is actually the Chapter 7 bankruptcy. This will require you - the debtor to collate all your non-exempt properties and such will be sold. The proceeds will all be used to repay as much of the unsecured debts.
In the event your lawyer files for bankruptcy, you as debtor will be required to appear to the local Federal Bankruptcy Court. The filing of the petition will be done here. Without the legal counsel, you might find it hard to accomplish this. In the petition, you have to prepare a statement of your assets and debts. You have to be sure that all assets under your name should be divulged. When you file for Chapter 7 bankruptcy and you have kept some of your properties, you are easily liable to misrepresentation which will ultimately be the ground for the dismissal of your case.
When your legal counsel had already filed the request you will be subjected to an automatic stay. Soon that this takes effect, lenders of the bankrupt family cannot exercise collection of the debts. The only alternative available to the creditors is to convince the court of the damage done to them by automatic stay. A bankruptcy judge will be assigned to help you by appointing a trustee. This person will have the following duties. First, he has to review the debtor's statement of assets. He will also take charge of the sale of the non-exempt properties. Finally, the trustee will undertake to distribute the proceeds to the lenders under the guidance of the Bankruptcy Code.
Another thing to happen after the filing of the petition is a meeting with the creditors which can be scheduled any day between 20 to 40 days holding period. The assigned trustee will next schedule for a 341 meeting. It is only during this meeting that the creditor is allowed to meet eye to eye with the debtor. Questions and answers, analysis of the situation will transpire during this meeting.
All queries that will next transpire will be in the form of a sworn statement to be executed by the debtor. Every fact found to be untrue will carry the penalty of perjury. The last step in the filing of bankruptcy is the discharge of all debts which will make the debtor free from obligations to the creditors. Once chapter 7 is culminated, you as the filer are now barred from filing another bankruptcy case under Chapter7 Bankruptcy for a period of 6 years.