Posts Tagged chapter 7 bankruptcy
The Role of a Trustee in a Bankruptcy Case
Ok, you are getting a fresh start on your financial situation by filing for bankruptcy. One of the important players that you are going to be interacting with in the case is a bankruptcy trustee. A bankruptcy trustee is a lawyer assigned to oversee your bankruptcy case. Their role in the case differs as to whether your bankruptcy case is Chapter 7 or Chapter 13.
In Chapter 7 Bankruptcy
In a Chapter 7 liquidation case, a trustee is selected at random from a panel of lawyers. Their main goal is to sell property and distribute the proceeds to creditors. In this process, a trustee sits down with the debtor during a “341 meeting” and asks them questions about their assets and financial affairs. From there, trustees review bankruptcy documents and is entitled to ask questions to find out if any nonexempt property, assets, or items can be seized by the trustee and sold to satisfy debts.
In Chapter 13 Bankruptcy
In a Chapter 13 reorganization, a trustee’s role differs somewhat from a Chapter 7 bankruptcy. A debtor still meets with a trustee in a 341 meeting and is asked about assets and financial affairs. However, the trustee cannot take any of their property or assets. Instead, they assess the bankruptcy plan to see if it fits technical requirements and if it seems like it has a reasonable chance of success in repayment. Additionally, many trustees in Chapter 13 offer financial counseling and management.
A Reminder
It is important to to remember a couple things about a bankruptcy trustee in order for a case to run smoothly and carefully. First of all, they aren’t your enemy who is seeking to suck you dry of all of your money. Their main goal is not to pick through your possessions to sell them off. In fact, most are quite reasonable people who are simply trying to do their job. In relating to a trustee, a debtor first of all needs to be honest. That includes an accurate listing of your assets because inaccurate disclosure can lead to criminal prosecution and a loss of discharge.
Trustees are not the only aspect of a bankruptcy case that is important to be informed about. If you are seriously considering bankruptcy and you live in Los Angeles, you need to consult with an attorney who understands California bankruptcy laws. Not all bankruptcy attorneys are the same. While the process appears complicated, a Los Angeles bankruptcy attorney will be able to help you understand your options and avoid making bad decisions. You get one chance to file bankruptcy right the first time. The attorneys at Borowitz & Clark know what they’re doing, because bankruptcy is all they do. Unlike many firms, they never leave a paralegal or secretary in charge of a case. That’s why their cases succeed at such a high rate—even higher than many other bankruptcy firms. For a free consultation, contact a qualified Los Angeles bankruptcy attorney from BLC Law toll-free at 800-509-3200, or visit www.blclaw.com.
What Is A Chapter 7 Bankruptcy?
During these most uncertain times, many hard-working Americans are finding themselves overwhelmed by financial problems. It can happen to even the best of people, no matter what tax bracket they may qualify for. If these circumstances do happen to you or anyone you know, it is very important that all options of relief are considered. However, most are finding that filing for Chapter 7 bankruptcy is the best alternative for financial relief.
How It Works
The most frequent type of bankruptcy is Chapter 7, which is also referred to as a ” “liquidation” bankruptcy, that cancels out your debts. The entire legal process takes about three months, costs $299 in court filing fees, and commonly requires only one visit to a hearing. The court proceedings will liquidate any non-exempt belongings of the borrower. Examples of exempt belongings that will avoid liquidation can be a house, car, tools of a business, or a number of approved, personal items. However, the exemption differs from the state and federal laws, so it recommended to clarify your state’s laws before filing. Once the non-exempt belongings are liquidated, the amount gained from selling the borrower’s assets are distributed amongst the creditors involved, in order to pay off the debt. After the proceedings, the court frees the borrower of all their dischargeable debts, giving them a fresh financial start.
The Automatic Stay
Sometimes referred to as “bankruptcy’s magic wand”, the automatic stay puts into effect an “Order For Relief” upon filing, which immediately puts a stop to most creditors who are trying to collect what you owe them. They cannot garnish your wages, go after your house or car, or cut off your utilities or welfare benefits.
Who Is Eligible
There are a few requisites for eligibility in a Chapter 7 bankruptcy case. Under the new bankruptcy laws, you must measure your current monthly income over the last six months against the median income of a family your size in your state. If your income is equal or less than the median income, you are eligible to file for a Chapter 7. If your income is over the median, you must pass “the means test”. The purpose of “the means test” is to judge whether you have enough disposable income to repay a portion of your debt over a five year period. If you have already obtained a discharge of your debts within the last eight years from a Chapter 7, or within six years of a successful Chapter 13 filing, you won’t be able to file for Chapter 7 bankruptcy.
How To File
To file for Chapter 7 bankruptcy, you will need to fill out a number of forms and file them with the bankruptcy court in your area. The forms will ask you to describe your property, income, living expenses, debts, personal property, and money spent and property owned and sold within the last two years. It is recommended that the first thing you do is call an accredited attorney in your area for a free debt consultation.
If you are seriously considering bankruptcy and you live in Utah, you need to consult with a Utah bankruptcy attorney. While the process appears complicated, a Utah bankruptcy lawyer will be able to help you understand your options and avoid making bad decisions that you could later regret. If you are over-burdened with bills and cannot see any light at the end of the tunnel, bankruptcy may be the best option to help you get that much needed clean slate and allow you to rebuild your future. Lincoln Law specializes in bankruptcies. Every day, we help people get out from under debts from $10,000 to $1,000,000 and higher. So far, we’ve wiped out over 100 million dollars in debt. We even created the software that is now used by other leading bankruptcy law firms throughout the country! You need Lincoln Law. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time.