Massachusetts Chapter 13 Bankruptcy

Posted on January 10, 2011

The purpose of a Chapter 13 Bankruptcy is to restructure the finances of the person filing in order to give as much money as possible to creditors while giving the filer some money to live. The court will determine your disposable income by first calculating your averaging your last six months of income, then they will subtract your secure debts (mortgage), contractual debts (rent), non-dischargeable debts (alimony and student loans), and living expenses. The left over money (disposable income) will be shared between your creditors.

After one has started a Chapter 13 bankruptcy, that person’s income may increase with a raise or other additional income. The tendency is to not share with the courts this good fortune. However, it is an offense to not report any changes in income and the punishment will not only be severe but will terminate the Bankruptcy and return the obligation to pay the entire amount of the debts. Similarly, if your income decreases you are required to report this as well and the courts will lower your payments to the creditor.

If you would like assistance with determining what would be the best option for you regarding your debts or you would like to file for bankruptcy, please contact MATTHEW T. DESROCHERS, ESQ. at (857) 244-1940 or fill out the form on the right.

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