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Important Things To Know Concerning Chapter 7 Monterey

By Brenda Bell


When an individual decides to file liquidation bankruptcy then it usually becomes very possible for the trustee to actually cancel the arrears which you might be charged with. The trustee can also liquidate some of your assets so as to cover the debts which you are probably charged with. In some instances a debtor can choose to file his case either under chapter 13 or under chapter 7. Chapter 7 Monterey regulations usually determines the individuals who are eligible in filing such a case, the correct amount of debt which is necessary for discharge as well as the procedure which needs to be followed during the process of filing.

The liquidation bankruptcy process mostly takes a process of about six months which costs approximately $335 which incorporates the administrative plus filing fee. This bankruptcy process can only demand a single trip to the court room depending on the complexity of the case filed. An individual who has basically received any kind of bankruptcy discharge in about last eight years may not be eligible to use chapter 7.

You will definitely realize that each state has its own guidelines with regards to income. But in the instances where the debtors income may be above the average required the court usually demands the debtor to take what is known as means test with an aim of establishing eligibility of liquidation bankruptcy.

The guidelines with regards to the income criteria usually depends on the state which the debtor comes from. But in the case where the income of filer is particularly above the means as required by law then the court in this case requires the filer to undergo a means test. This particular test majorly focuses on the establishing the suitability of the liquidation case.

If the filer possess a certain amount of income which is leftover after monthly paying off debts then the debtor is likely to fail this means test. Before filing the liquidation bankruptcy case the debtor is expected to attend credit advising. Upon the completion of this type of counseling with an approved agency from your state then now the debtor is eligible to file the case with a court dealing with such cases.

In this case an individual cannot sell or even give away your possessions when you basically file or in the instances when you pay off the pre filing debts without the consent of the court. But with some few expectations an individual can do whatever he feels like with his own assets which he acquires and the income which one earns after he has filed this type of a case.

The bankruptcy court usually exercises control over your possession through a bankruptcy trustee who is basically a person who has been appointed by the court. This person duty is basically to make sure that all the creditors are paid the correct amount which the debtors owes them.

The court is then expected to appoint a person who is known as a trustee in each bankruptcy case. The main role of the trustee in these proceedings it to actually oversee the entire case so as to make sure that the debtor has filed correct documents.




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