Bankruptcy Lawyer MA Matthew T. Desrochers » Bankruptcy Attorney MA

Chapter 13 Bankruptcy

admin — Wed, 27 Apr 2011 18:19:03 +0000

People not eligible to file a Chapter 7 bankruptcy may be eligible for Chapter 13. The key lies in protecting non-exempt assets.

For people opting to file bankruptcy under Chapter 13, they need to know that the procedure is a great deal more complex than a Chapter 7. Chapter 13 takes into account a detailed evaluation of income and a person’s expenditures to figure out what would be a suitable repayment plan. Debtors with non-exempt assets who happen to have a below average income according to the state median will typically make payments over a three year period otherwise they will make payments for five years.

In addition, anyone filing for bankruptcy will have to take credit counseling at least 180 days before their papers are filed.

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 us at (857) 244-1940 or fill out the form on the right.

I Want to Keep My Home…Bankruptcy Might Be Your Best Option

admin — Thu, 07 Apr 2011 16:56:16 +0000

If you are having financial difficulties and fear that foreclosure of your home might be imminent, think long and hard about your options for debt relief, including the possibility of filing for bankruptcy. After all, bankruptcy can be a way that you get to keep your home because it could allow you to get rid of enough debts that you can afford to make back payments and keep your house.

While bankruptcy was once seen by some as a failure of some kind, and was often considered shameful, that is simply not the case anymore. Yes, bankruptcy will have an impact on your credit rating for a time, but it can actually improve the credit of one who is in danger of foreclosure. Most people who file for bankruptcy can begin to positively rebuild their credit in as little as a year, allowing them to once again qualify for auto or home loans, and obtain new credit cards.

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 (857) 244-1940 or fill out the form on the right.

Looking for a Good Bankruptcy Attorney

admin — Wed, 30 Mar 2011 16:51:19 +0000

Filing for bankruptcy can be a long and painful process and as such you will want to make sure you have a good lawyer. Here’s a few tips to help you find one:

Google Bankruptcy Attorney Reviews in your area
Remove attorneys with bad reviews and seek out one’s with good client reviews. Sometimes they will have reviews on BBB and Yelp.com as well.
Compile a list of local attorney’s you are interested in
Call each attorney on your list
Ask to see if they offer a free initial consultation, most lawyers do
Set up free initial consultations with several lawyers
Use the consultation as way to weigh which lawyers you like by asking questions and learning how much it would cost to retain the services of the firm or attorney in question
In the consultation, ask about other options, a good bankruptcy lawyer will make sure that if there are other options they suggest those as well.
Finally, choose a lawyer and retain them as soon as possible

Should I Reapply For a Modification Loan Through HAMP?

admin — Mon, 14 Mar 2011 18:52:51 +0000

Obama’s home affordable modification program or HAMP is being criticized from many groups of people as being useless. After all, millions of homeowners have been denied financial assistance through this federal initiative for the past few months and if reports are to be believed, just one in four applicants have been successful in getting a HAMP home loan modification approval.

However, while it may need to be retooled there is still a chance that even if you have already been denied you may be approved if you re-apply with an expert helping you. Here are a few reasons why your HAMP loan may not have been approved:

Some information was not the correct information or as accurate as needed that was submitted, such as inability to provide proof of verifiable monthly incomes.
The borrower could not yet demonstrate a financial hardship which is a requirement and as such this loan cannot be used as a preventative initiative.

By choosing to seek help with a qualified attorney they will be able to help you find a loan modification program that will be right for you, whether reapplying for the HAMP program or applying to your lenders own program. In addition, an attorney has knowledge about where these applications generally go wrong and can not only walk you through the procedure but are efficient at negotiating with the lenders.

If you would like to learn more and/or receive assistance with loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Can I File Bankruptcy Again?

admin — Wed, 16 Feb 2011 17:31:19 +0000

Have you already filed for bankruptcy, but this economy has caused you to nee to file again?

If this is you, you may be wondering if you can file for bankruptcy again. Or you may be thinking about filing and are wondering if the economy goes south again or you end up with massive medical bills, what would your options would be later.

The answer is yes, you can file again. Do check with an attorney to make sure that the requirements between years have not changed. Check out the years below”

8 years between 7s. -727(a)(8)
2 years between 13s. -1328(f)(2)
4 years between a 7 and 13 -1328(f)(1)
6 years between a 13 and 7(if under 70% plan). -727(a)(9)

The time is counted from filing to filing — not from first discharge to second filing.

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.

Senior Citizens and Bankruptcies

admin — Fri, 07 Jan 2011 06:00:18 +0000

Only seven percent of all bankruptcy cases filed in the U.S. between 1991 and 2007 were entered by people aged 65 and older; however, the demographic was the fastest-growing age group observed in a new study from the University of Michigan Law School. About two-thirds of these elderly consumers were forced to file for protection because their credit card debt was unmanageable. Their debt was roughly 50 percent higher than it was for bankrupted consumers in other age groups.

The large majority of these bankruptcy filings from senior citizens stem from credit card debt. The most common reason for Senior Citizen’s reliance on credit cards is because they used them to pay their medical expenses after their income decreased and became fixed. In addition, others had to deal with the death of a spouse who provided a secondary income.

More People Are Filing Bankruptcy

admin — Wed, 22 Dec 2010 20:19:25 +0000

The Wall Street Journal reported that the recession has affected everyone and that the number of people filing for bankruptcy over 2010 was expected to reach more than a million and half Americans. Since the recession, it has become more common for filers to earn more than $30,000 per year and have a college degree. Twenty percent of filings in 2009 were by this group. This is a 4.1 percent jump from 2006. Last year, 9 % of filers earned over $60,000, an increase of 5.5 percent since 2006.

To File or Not to File

While filing for bankruptcy seems to be a great idea and will give one a clean, fresh start. It may not be the best option for many people. After all bankruptcy, can be humiliating and affect you credit for many years to come. In addition, changes in law have made it more difficult and more expensive to file for bankruptcy.

Other Options

Debt Settlement – Lawyers and Debt Settlement companies can work with you to create a payment plan and negotiate with your credit companies to allow you to pay off your debt at a discounted rate.

Loan Modification – When you own a home and are having difficulty paying your mortgage, a lawyer can help you negotiate the terms of your loan to make the payments more reasonable.

If you would like assistance with determining what would be the best option for you regarding your debts, please contact

MATTHEW T. DESROCHERS, ESQ.
For a free consultation call (857) 244-1940 or fill out the form on the right.

Major Change In The Federal Bankruptcy Statue

admin — Mon, 06 Dec 2010 22:26:30 +0000

Chapter 7 bankruptcy may be harder to file under the new law.

In 2005 the bankrucpty code was changed by Congress. The major changes make it harder for some people to file bankruptcy. A few filers with higher incomes will no longer allowed to use Chapter 7 bankruptcy, but will instead have to repay at least some of their debt under Chapter 13. In addition, the 2005 law requires all debtors to get credit counseling before they can file a bankruptcy case — and additional counseling on budgeting and debt management before their debts can be wiped out.

Here are some of the most important changes in the 2005 bankruptcy law.

Restricted Eligibility for Chapter 7 Bankruptcy-LACK OF CHOICE!!!!

Under the old rules, most filers could choose the type of bankruptcy that seemed best for them — and most chose Chapter 7 bankruptcy (liquidation) over Chapter 13 bankruptcy (repayment). The law passed in 2005 prohibits some filers with higher incomes from using Chapter 7 bankruptcy.

How High is Your Income?

Under the rules enacted in 2005, the first step in figuring out whether you can file for Chapter 7 bankruptcy is to measure your “current monthly income” against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7 bankruptcy. If it is more than the median, however, you must pass “the means test” — another requirement of the news law — in order to file for Chapter 7.

Massachusetts median income for (for cases filed on or after April 1, 2010):

Single earners $53, 315
2 persons $69,204
3 persons $82,297
4 persons $99,293
Add $7,500 for each person in excess of 4

The Means Test

The means test includes your spouses incomes as well. We will calculate the income related to such test by taking the clients income as well as a residing spouse. The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments on a Chapter 13 plan. To find out whether you pass the means test, you subtract certain allowed expenses and debt payments from your current monthly income. If the income that’s left over after these calculations is below a certain amount, you can file for Chapter 7.

Counseling Requirements-DEBTOR EDUCATION

Before you can file for bankruptcy under either Chapter 7 or Chapter 13, you must complete credit counseling with an agency approved by the United States Trustee’s office. The purpose of this counseling is to give you an idea of whether you really need to file for bankruptcy or whether an informal repayment plan would get you back on your economic feet.

Counseling is required even if it’s obvious that a repayment plan isn’t feasible or you are facing debts that you find unfair and don’t want to pay. You are required only to participate, not to go along with any repayment plan the agency proposes. However, if the agency does come up with a repayment plan, you will have to submit it to the court, along with a certificate showing that you completed the counseling, before you can file for bankruptcy.

Toward the end of your bankruptcy case, you’ll have to attend another counseling session, this time to learn personal financial management. Only after you submit proof to the court that you fulfilled this requirement can you get a bankruptcy discharge wiping out your debts.

Lawyers May Be Harder to Find — and More Expensive

The changes to bankruptcy law enacted in 2005 added some complicated requirements to the field of bankruptcy. This made it more expensive — and time-consuming — for lawyers to represent clients in bankruptcy cases, which means attorney fees have gone up. The 2005 law also imposed some additional requirements on lawyers, chief among them that the lawyer must personally vouch for the accuracy of all of the information their clients provide them. This means attorneys have to spend more time on bankruptcy cases, and they charge their clients accordingly.

Some Chapter 13 Filers Will Have to Live on Less

Under the old rules, people who filed under Chapter 13 bankruptcy had to devote all of their disposable income — what they had left after paying their actual living expenses — to their bankruptcy repayment plan. The 2005 law added a wrinkle to this equation: Although Chapter 13 filers still have to hand over all of their disposable income, they have to calculate their disposable income using allowed expense amounts dictated by the IRS — not their actual expenses — if their income is higher than the median income in their state. These allowed expense amounts must be subtracted not from the filer’s actual earnings each month, but from the filer’s average income during the six months before filing.

Other Changes

Other changes were made in 2005 that have affected some bankruptcy filers negatively, including how property is valued (at replacement cost instead of at auction value, which means more debtors are at risk of having their property taken and sold by the trustee) and how long a filer must live in a state to use that state’s bankruptcy exemption laws (this can make a big difference in the amount of property a bankruptcy filer gets to hold on to).

To discuss your debt situation, please contact Matthew T. Desrochers, Esq. at (857) 244-1940 or fill out the form on the right for a free consultation.

Signs That You Might Be Headed Towards Bankruptcy

admin — Tue, 19 Oct 2010 14:25:14 +0000

U.S. consumer bankruptcies are trending UPWARDS-big time!!!, 1.6 million filings estimated to come by the end of 2010.

That puts bankruptcy filings at their highest level since 2005, according to the American Bankruptcy Institute In 2005 Congress sought to limit bankruptcies through the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).

But bankruptcies have soared just the same, says the ABI. “While the 2005 bankruptcy overhaul law aimed to reduce filings, overall consumer debt and continued financial stress have led to consumer bankruptcies climbing back to pre-BAPCPA levels,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be nearly 1.6 million new bankruptcy filings by year end.”

How can you avoid getting on that undesirable list? Start by knowing the key signs that you might be headed toward bankruptcy. With enough warning, you may be able to take steps to avoid financial calamity and get back on solid financial ground.

Here are a few signs that you are heading towards BANKRUPCTY

You’re using credit cards to pay for critical items like housing or groceries – Credit cards aren’t meant to pay ongoing household bills, especially if you have any outstanding balance. If you’re using a card to pay your mortgage each month, or are down at the Safeway (Stock Quote: SWY) sliding your card through the checkout line scanner for food and supplies every week, you may be headed down a slippery path.

You have no health insurance – Full-blown health reform doesn’t kick in until 2014 – that is, if the courts allow it. Until then, if you don’t have health insurance you’re just asking for financial trouble. Studies show that medical bills are a common trigger for bankruptcy proceedings. If you don’t have insurance, and you suffer a major accident or illness, that’s a surefire way to go broke.

Home equity line of credit –DON’T ABUSE IT!!!!! This one is hard to accomplish these days, as banks have really tightened the reins on home equity loans. But if you fall behind on your home equity payments, the bank treats it like you’ve fallen behind on your mortgage – and it could try to foreclose on your home. It’s imperative that you keep up to date on your home equity payments – banks and mortgage lenders are watching those payments very closely.

Living paycheck-to-paycheck: Another sign that you’re in danger of sliding into bankruptcy is not having any savings in your financial picture. This tees you up for serious financial trouble if you lose your job or suffer a debilitating illness.

Co-signing loans: Never co-sign a loan for anyone – even a family member. If the borrower forecloses on the loan, the bank will come to you looking for payment in full. If you can’t make good on the loan, then it’s your neck on the chopping block. Co-signed loans are another common theme in bankruptcy proceedings.

Bankruptcy doesn’t have to be inevitable. If you suspect you’re in deep financial straits, take concrete steps to avoid the “final straws” listed above. Your current debt situation may be difficult, but it needn’t lead to bankruptcy.

If you are struggling financially and feeling that money is tight; you must speak to a qualified bankruptcy attorney. Please contact the Law Offices of Matthew T. Desrochers, P.C.
We offer FREE consulations and in home appointments.

5 Do’s And Don’ts When Considering Bankruptcy in Massachusetts

admin — Tue, 14 Sep 2010 18:27:50 +0000

My name is Matthew T. Desrochers and I am a practicing bankruptcy attorney. I often find myself advising clients not to do things they were planning on doing before they came in to see me. After all, that’s why they are in my office, to get advice on how to handle their debt issues. Some of the actions they contemplate, if they did carry through with them, would result in disastrous outcomes for their bankruptcy. Below you will find a few DO’s and DON’TS for anyone considering filing bankruptcy.

1. DO: When completing your bankruptcy petition, list all of your property and assets, as well as all of your debts and creditors.

Your bankruptcy petition is the paperwork they you fill out and your bankruptcy lawyer later files with the Court. The Debtor, the person filing bankruptcy, must reveal all of their assets and all of their debts in this petition. This is one of the main prerequisites when filing bankruptcy. In other words, you have to list everyone who you owe money to (including friends and family) and all of your possessions (even that old motorcycle your dad gave you).

2. DON’T: If you are represented by a bankruptcy lawyer, DO NOT call the Trustee’s office.

Recently I attended a “brown bag luncheon” (us bankruptcy lawyers aren’t the “wine and dine” type) with the Chapter 13 Trustee. At the luncheon, the Trustee made it very clear that if a client calls her office, only bad things could come of that call. In fact, she advised every lawyer to go back and tell our clients NOT to call her office. When a client calls in to the Trustee, their file immediately pops up on the screen. The person viewing that screen then looks for any little thing that may have gone unnoticed in the client’s case. Is a Plan payment a little late? Was there a tax refund that previously went uncollected?

3. DO: Keep your bankruptcy lawyer updated about changes in your Income during a Chapter 13 case

When you enter into a Chapter 13 bankruptcy, it can go on for up to 5 years. Think of a Chapter 13 as a partnership between you and your bankruptcy lawyer. We will be friends for the next few years. To reach the intended successful outcome, each party must perform their duties. One of the obligations of a person filing bankruptcy under Chapter 13 is to ensure their bankruptcy lawyer

is aware of any changes in their income, whether an increase, or decrease, during the entire case. While you may be hesitant to let your bankruptcy lawyer know about an income increase, you must keep in mind that it does not always result in an increased plan payment.

4. DON’T: Give away or remove your name from expensive assets you own before filing bankruptcy.

This DON’T might be the biggest and most important. Just re-read the statement after DON’T above, it doesn’t sound honest, does it? The bankruptcy Court certainly doesn’t believe that it is. In fact, the Court calls this FRAUD and you can get in a lot of trouble for it. Transferring any property out of your name before filing bankruptcy is just something you shouldn’t do.

5. DO: Disclose, Disclose, Disclose

There is a favorite saying in the bankruptcy lawyer community: “The three most important words in bankruptcy are Disclose, Disclose, Disclose”. Yeah, we’re such a clever bunch! The point is, when in doubt about whether to “list” an asset or anything really, in the Petition, Disclose it. Let everyone know about it. Maybe it turns out to be nothing important and you’ve lost nothing by the disclosure. On the other hand, maybe the non-disclosure is uncovered by the Trustee and interpreted as an attempt to mislead the Court. In that case, you may have just lost everything. Clients should take this saying to mean “Tell your bankruptcy lawyer everything”.

While there are many, many more Do’s and Don’ts when filing bankruptcy, these 5 will get you well on your way to a successful outcome.