There are many people who are considering bankruptcy, but do not know what Chapter 7 incorporates. This is a common bankruptcy filing chapter used in the United States. It is called Chapter 7 because it falls into that chapter of the Bankruptcy Code.

It also goes under the heading of liquidation bankruptcy. During Chapter 7 bankruptcy Louisiana, an appointed trustee will sell all your non-exempt assets. The funds obtained from the sale are used to settle your outstanding debts.

Before you start your petition, you should make sure that you have all the required documents available. These include reports like payslips, bank statements, credit card statements, loan agreements and anything else you may need for the completion of the petition. The information that you supply in the petition documents should be the same as those listed in your financial reports.

You will require a huge amount of documents when you do the filing. The documents are obtainable in package form from the bankruptcy clerk of the court’s offices. You may be required to pay a certain fee to obtain it. These documents will include a statement of your financial affairs and a schedule of assets and liabilities. You will need to open your financial life to the court. This means listing all your income, property, expenses, property transfers and debts. Once completed, you need to file it with the clerk of the court. At this stage, a fee is payable for the filing.

It is necessary to pass a means test. This should be done prior to the filing. The test is used to determine if you have sufficient means to settle your creditors. If you should fail the test, you will need to fall into a special category to be able to file under this chapter of the bankruptcy code.

Once your application has been filed at court, a court notice will be issued to convene a creditors meeting. This will be forwarded to all the creditors listed in the application. During the meeting, the trustee will pose certain questions regarding your financial situation. If the trustee is not satisfied with your answers, he may choose to postpone the meeting to allow for investigation of your affairs. The creditors also have the right to question you about your financial affairs.

The trustee is able to take possession of non-exempt property you own and sell it to raise funds. There are certain types of property that are exempt from seizure. For example, you are able to retain your retirement accounts. The list of exempt property has to be stated in Schedule C of the petition documents you include in your filing. Any assets and funds taken by the trustee will be used for distribution among your creditors.

In the event that the trustee and your creditors have no objections to the discharge of your debts, the court will normally take around 60 days after the initial meeting of creditors to discharge it. This protects you from any further action by the creditors on your list. There are certain debts you should be aware of that are not discharged by this bankruptcy petition.

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