Filing for Bankruptcy in Massachusetts? | Most Frequently Asked Questions
What is Bankruptcy?
Bankruptcy can be a legal proceeding designed to assist individuals unable to pay their bills. It also offers an opportunity to make a new financial start. Federal law gives all bankruptcy cases the right to file. The main benefit of filing bankruptcy is to stop creditors from pursuing your debts until the law allows you to resolve them.
Can bankruptcy eliminate all my debts?
- There are exceptions. These are the areas that bankruptcy will only sometimes eliminate.
- Money owed to child support or alimony and certain taxes.
- Debts that result from “willful, malicious” harm
- The Court may cancel most student loans in certain circumstances
- Liens and Other Mortgages Not Included in the Petition
- Remember that any dischargeable and unsecured debts will be wiped out once your case has been closed.
Can a bankruptcy file stop me from owing creditors?
Technically, the answer is yes. The Court will take some time to send notices to creditors by mail. While you may still receive calls during this time, creditors will be provided with a case number to assist them if they call. This will usually take care of all phone calls.
Is it too late to file for bankruptcy if I am already sued or garnished?
No. Bankruptcy will not stop creditors from collecting. No matter the stage of collection, you will be immediately protected.
Where will my case be filed?
The District in which you reside is where your case will be filed.
What is Chapter 13 bankruptcy?
- The following are the best circumstances for Chapter 13 bankruptcy (reorganization).
- If you are your homeowner and fear it may be lost due to financial distress.
- You are behind in your debts but can catch up with them if you give it some time.
- Own valuable property that is not exempted from bankruptcy. However, your income may allow you to pay creditors over some time.
- Have enough income during Chapter 13 to cover necessary expenses while still paying your debts.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is the best option if you don’t have any regular income. The process reduces or eliminates most of your debts. The trustee will help you make a new start and not worry about your debts. The bankruptcy court assigns a trustee to act as an intermediary after you file Chapter 7 bankruptcy. He supervises everything and ensures the bankruptcy plan is proceeding as planned.
What is the cost of filing for bankruptcy?
Massachusetts Bankruptcy Attorneys provides convenient payment options for qualified clients and a $995 bankruptcy filing. All fees must be paid in advance before you file your bankruptcy case. Our attorney fee for filing your Chapter 7 case is $995. This fee can increase in cases where additional legal services are needed. The court filing fees of $350 plus the credit report fee and two courses in financial management required by Massachusetts are your responsibility.
If credit cards are still valid, is it possible to keep them?
All your debts should be listed. It would be best if you listed all your debts. Creditors (credit card companies) will most likely cancel them after you file.
What was bankruptcy designed to do that it didn’t?
First, there are better solutions than bankruptcy for all financial circumstances. To ensure that bankruptcy is the right decision, careful consideration must be made. Most often, bankruptcy cannot be:
1) Cannot eliminate secured creditors from any liens they may have on the property (collateral for a loan). Examples include vehicle loans and home mortgages. Most people can only keep collateral if they continue to pay their debts.
2) Cannot pay child support, alimony, or any other debt related to divorce, criminal fines, most student loans, and some taxes.
3) Cosigners cannot be protected on loans. The cosigner might still need to repay the loan in these cases.
Do I have to appear in Court?
At the bankruptcy court, you must appear at a meeting with creditors. The meeting will be held by the trustee, an attorney appointed for the administration of the bankruptcy case. Based on where your lawsuit was filed, the conference will be held.
What will happen to my credit if I file for bankruptcy?
If someone is behind on their payments, likely, their credit has already been damaged. In most cases, however, bankruptcy filings will not make things worse. You can have bankruptcy appear on your credit report for up to 10 years. Positively, bankruptcy can wipe out old debts and allow you to continue paying your bills on time, making your credit history much more favorable.
What can I do to help with bankruptcy?
Bankruptcy has many benefits, including:
1) Removal of a legal obligation to pay debts. Also known as a “discharge,” a legal release of debts granted by the courts to individuals to make a fresh start.
2) Halt foreclosure on your home and give individuals a chance to make missed payments.
3) Prevention of repossessions on property or cars, and the creditor can return the property in most cases even after a repossession.
4) Stop garnishment and creditor debt collection harassment.
5) Prevent the termination of your utilities and restore them.
6) Requests creditors to be challenged by the individual so that you only pay what you owe.