Chapter 7 Bankruptcy Attorney – Coverage
A Chapter 7 bankruptcy attorney is often necessary when an individual, pair or group is in a financial crisis or faces some financial difficulties. Apparently, this state of being bankrupt is a matter of liquidation of non exempt assets of the individual, pair or company to pay off the existing debts that have gathered. There are laws regarding what kind of state of being bankrupt a person, couple or company is in and these are dependent on the amount of income that is earned.
The Chapter 7 bankruptcy attorney may seem superfluous in this situation but the reality of it is that he or she is necessary to help uphold the side of the individual, couple or company who is ordered to liquidate their non exempt properties. One of the lawyer’s initial charges is to file the official petition, the schedules and the Statement of Financial Affairs at the court.
He or she will be in charge of making available the list of creditors and the claims of the creditors including the full amount and the type of claim. The source of income of the person, couple or company as well as the schedule of income is also among the many things that the solicitor will prepare for the courts. Another list that the Chapter 7 bankruptcy attorney should put together is the list of properties under the individual’s, couple’s or company’s name. This should consist of non exempt properties as specified in the law.
The list of monthly living expenses is also included in the things to submit since this will enlighten the courts regarding what the person, couple or company usually spends per month.
The importance of immediately filing as bankrupt is the saying order that is usually ordered by the court. This so called “automatic stay” stops creditors from suing the person, pair or group as well as prevents creditors from getting or confiscating their properties. The appointed trustee of the property will eventually take control of the available properties and sell off whatever is needed to pay off the creditors.
The Chapter 7 bankruptcy attorney will represent the interest of the individual, couple or group in this stage of the proceedings. The payments will be given to the creditors according to priority.
Administration fees will be taken from the sale of nonexempt properties along with the payment of active claims from recognized creditors. The lawyer should be aware that the salary or wages earned after the filing date is exempt from the properties to be given to creditors and the administration.
