In the fall of 2009 the American Bankruptcy Institute (ABI) reported that more than 140,000 people in the United States filed bankruptcy in October, a 27.9% increase from the October 2008 filings (“just” 106,266 consumer bankruptcy filings occurred in October 2008).
If you feel you are struggling financially and your family will become one of the stories behind those statistics, an experienced and compassionate bankruptcy attorney can help you navigate the complicated bankruptcy process and help you keep as many assets — such as your home — if possible.
If you find yourself in need of competent and compassionate help by a bankruptcy lawyer, you needn’t feel shame. Many people are finding they need to file bankruptcy in these tough economic times. It is every common in these economic climate that the filing of your bankruptcy petition is through NO FAULT of your own. Many times the debt is related to medical bills, illness or stolen identity.
One couple fell into bankruptcy when the wife went on disability for a few months following back surgery, while the man had to take some time off from work for knee surgery (so that his knee wouldn’t give out and he could continue working.). both are back at work (and the husband is working two jobs), but their health bills far exceed their income. A quote from the story speaks volumes:
“I tell my wife that we beat the economy,” [the husband said]. “But health care beat us.”
A qualified bankruptcy attorney can help you decide if you should file Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is the most common of bankruptcy filings. Once you have filed for protection with the Court, your creditors are required by law to stop all collection activity against you. No more telephone calls demanding payment, lawsuits, wage garnishments and best of all, no more debts! In general a Chapter 7 Bankruptcy will wipe out most of you debts, stop wage garnishments; repossessions and harassment which will allow you to control your financial future have peace of mind and get a fresh start.
A bankruptcy lawyer will also help you determine if filing a bankruptcy under Chapter 13 would be better for your situation. Often called a “debt repayment” or “reorganization” bankruptcy. Chapter 13 is a repayment plan for individuals and businesses with regular income that allows them to pay back all or some of their debts within 3 to 5 years.
Regardless, as you contemplate filing bankruptcy, be sure to find a good and experienced attorney from the many excellent bankruptcy attorneys available.
If you feel that bankruptcy might be an option that you would like to explore please contact Attorney Matthew T. Desrochers at 781-279-1822
When to apply for bankruptcy is a very personal decision. Many men and women do not possess any possessions over and above what the law will allow them to keep, even if they do not pay their creditors. If this is true of you, then you may well not need a bankruptcy in order to protect your assets.
Some individuals find it beneficial to file a bankruptcy case anyway due to the fact their financial circumstance is causing them emotional stress or depression, or because they really want to free themselves of debt now, if legally allowed, and have their income and belongings to themselves in the future. Furthermore, several individuals could find that a bankruptcy is worth filing even if they do lose some of their belongings.
Should a number of of the following are true in your situation, you could possibly look at bankruptcy:
An Individual’s wages have been garnished or your bank account has been attached
Most of an Individual’s debts are unsecured debts like credit card bills, hospital or doctor’s bills, etc.
Your total debt, not including your car or house loan, is more than you could pay, even over five or more years
Collection agencies are calling you at home and/or at work
A person’s payments are more than 30 days behind on more than one bill
There are lawsuits pending against you
You have high medical bills not covered by insurance
You owe income taxes that you are currently unable to pay
You have few assets
You have little or no savings
You have had property repossessed (such as a vehicle)
Regulations handed down in 2005 make it a lot more complex to enter bankruptcy.
You need to seek out guidance of competent bankruptcy legal professionals prior to deciding whether to enter bankruptcy.
We are proud to announce our corporate sponsorship with the Boston Area Real Estate Investors Association.
BostonAREIA is a group of like-minded real estate investors, entrepreneurs and professionals, coming together to discuss and share deals, investing techniques, contacts, methods, financing, strategies, education, motivation, training, mentoring and success.
Because we believe strongly in the power of networking, we join with other groups in the New England area to keep lines of communication and educational opportunities open for all members.
Current Bankruptcy law prevents debtors/clients from discharging any student loans except in cases of EXTREME hardship. Well things are changing!
Democrats Introduce Legislation to Make Private Student Loans Dischargeable in Bankruptcy
Democratic lawmakers introduced legislation yesterday that would allow private student loan borrowers to once again discharge their private student loans in bankruptcy. Since 2005, private student loans have not been dischargeable in bankruptcy. Before changes were made to the bankruptcy code in 2005, only federal student loans and private loans where substantially all of the funds were provided by a nonprofit institution were non-dischargeable in bankruptcy.
Senators Dick Durbin (D-IL), Sheldon Whitehouse (D-RI) and Al Franken (D-MN) cosponsored the legislation in the Senate and Representatives Steve Cohen (D-TN) and Danny Davis (D-IL) cosponsored the legislation in the House. “People who seek higher education to better their futures should not be dissuaded from doing so by the threat of financial ruin,” said Cohen in a press statement. “The bankruptcy system should work as a safety net that allows people to get the education they want with the assurance that, should their finances come under strain by layoffs, accidents, or other unforeseen life events, they will be protected.”
“One of the great inequities in student aid is the inability for private student loan borrowers to receive the same consumer protections that are provided to countless other types of borrowers,” said NASFAA Interim President Joan Crissman. “We support this legislation and urge lawmakers to do likewise.”
The bills in the House and Senate differ slightly. The House bill would return the bankruptcy law to the language that was in place before 2005, with minor tweaks. The Senate bill would allow all private education loans — including nonprofit loans — to be dischargeable in bankruptcy. Before changes were made to the bankruptcy code in 2005, only government issued or guaranteed student loans and private loans where substantially all of the funds were provided by a nonprofit institution were non-dischargeable in bankruptcy. This protection has been in place since 1978 and was intended to safeguard federal investments in higher education, according to lawmakers.
There are very few types of debts that the bankruptcy law subjects to a different standard, allowing for discharge in only the most extreme circumstances. For example, the bankruptcy code makes it especially difficult for people to escape child support responsibilities, overdue taxes, and criminal fines. Privately issued student loans should not be on that list, according to the lawmakers who introduced the bill.
Keep an eye out for these changes; they may help you get out of debt.
If you are unable to meet your monthly debt repayments, if your credit card statements are simply getting more and more in arrears and your medical bills remain unpaid for months on end, you might have only one alternative: file for bankruptcy. If you live in Massachusetts, contacting bankruptcy lawyer, Matthew Desrochers, is a great first step to understanding your options.
What precisely is meant by bankruptcy? This is a legal term which refers to someone applying to the courts to erase all his debt so he can start from scratch again. If you are therefore in a position to actually pay your debts, your application is unlikely to be successful. Reasons which the bankruptcy court normally accept are large and unexpected medical claims, losing your employment, or marital problems causing financial havoc in your life.
It’s highly inadvisable to try to handle the whole application without the help of a Massachusetts bankruptcy lawyer.
When your lawyer submits your application to be declared bankrupt to the court, they will inform all your creditors about this. A first meeting of creditors will then be arranged, more or less thirty to forty days after the application filing.
During this meeting your lawyer must submit to the court a complete overview of your financial matters. This has to clearly show your monthly expenses and income and also contain a list of everything you own and owe. From there on you can refuse to directly deal with your creditors.
If your application is approved, the terms will be made known to everyone involved. Unfortunately all your assets will form part of the now bankrupt estate. You will therefore not be able to keep anything, except those assets which have been exempted by the court.
To receive a free bankruptcy consultation, contact Matthew Desrochers at (857) 244-1940 or fill out the form on the right.
In today economic climate many people are turning to the U.S. Bankruptcy Code and attorneys for assistance. The Law Offices of Matthew T. Desrochers, P.C. has helped many clients overcome their financial difficulties and WE CAN HELP YOU. When I meet with clients I often have to demystify common misconceptions of bankruptcy.
I have attached several myths and responses to those myths for your review.
Myth #1: It is difficult to file for bankruptcy.
False. The new bankruptcy laws have drastically reduced the time it takes to be discharged from bankruptcy down to an average of nine months. In today’s economic landscape, it is understandable that individuals need to file for bankruptcy in order to start over. A qualified, experienced bankruptcy lawyer can make the process as simple and painless as possible.
Myth #2: You will lose everything you own.
This one of the biggest misnomers deterring people from filing. Bankruptcy laws do vary from state to state, but every state has exemptions that can protect certain assets, such as your house, car, qualified retirement plans, household goods and necessary clothing. You can choose STATE or FEDERAL EXEMPTIONS when you file. The STATE exemptions vary in each state and FEDERAL or nation-wide. Call Attorney Matthew T. Desrochers to discuss your exemptions
Myth #3: You will never get credit again.
Quite the opposite, actually. Before you even get home from the courthouse, your mailbox could be rich with credit cards offers again. The catch is that they will be from subprime lenders charging very high interest rates. In fact, if you have a credit card with no balance at the time you file, you may not have to include it in your list of creditors, since you don’t owe them money. You may even be able to keep the card after the bankruptcy is finished.
Myth #4: If you are married, both spouses have to file.
This one is tricky, but not entirely true. It is very uncommon for one spouse to have a significant amount of debt in their name only. If there are debts that a married couple wants to get discharged in which they are both liable for, they will need to file together. If only one spouse files for bankruptcy, the creditors usually demand the entire payment from the spouse who didn’t file.
Myth #5: You can only file for bankruptcy once.
You can actually file for bankruptcy more than once, but the new bankruptcy laws extended the amount of time in between filings. Chapter 7 bankruptcy can be filed for once every eight years and a Chapter 13 filing once every two years. If you want to file for both on separate occasions, there is a four year wait in between the two filings.
Myth #6: Everyone will know you filed for bankruptcy.
Unless you are a very prominent person or a major corporation and the media gets word, the only people that will know about your filing are your creditors. These days, the amount of people filing is so immense that very few publications have the time, space or inclination to run anyone’s name.
If you are thinking about filing for bankruptcy in Massachusetts; you must look for a bankruptcy lawyers that focus exclusively on bankruptcy law, Matthew T. Desrochers, P.C. Bankruptcy Law. Every day, Matthew T. Desrochers help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call (857) 244-1940 or fill out the form on the right.
