Commonly Asked Massachusetts Bankruptcy Questions

What Exactly Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, sometimes known as a straight bankruptcy, is a liquidation proceeding. The debtor relinquishes all non-exempt assets to the bankruptcy trustee who then converts it to money for distribution to the collectors. The consumer receives a release of all dischargeable financial obligations typically within four months. In the majority of instances the debtor has no property that he would lose so Chapter 7 will offer that individual a relatively fast “fresh start”.

One of the main purposes of Bankruptcy Law is to give somebody, who is hopelessly mired with debt, a fresh start by clearing out their debt.

Individuals who file for chapter 7 bankruptcy will have to agree to attend credit counseling. After filing chapter 7 bankruptcy, it can be tough to get credit for a few years, and you will not be able to file for bankruptcy again for a set amount of time.

It has become more challenging to file for chapter 7 bankruptcy in the United states, thanks to laws and regulations which significantly stiffened the bankruptcy rules in the early 2000s. It is recommended that you speak with a bankruptcy attorney and an accountant before investing in a personal bankruptcy filing, because despite the fact that the professional charges for the consultation may be high, there might be an alternative that has not been considered. A professional consultation can also smooth the way to move ahead with bankruptcy filings, if a consumer decides to carry on with bankruptcy proceedings.

What Is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is commonly recognized as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by consumers who would like to repay their financial obligations over a time period of three to five years. This kind of bankruptcy is of interest to individuals who have non-exempt property that they want to retain. It is also only an alternative for people who have predictable earnings and whose income is acceptable to pay their reasonable expenses with some amount left over to pay off their debt.

Should I File Chapter 7 Bankruptcy In Boston?

You may be feeling the burden of the debt you face. You have bills that are piling up and can’t see the light at the end of the tunnel. One option worth exploring is filing for Chapter 7 bankruptcy.

Almost 65% of personal bankruptcy filings are Chapter 7 making it the most common type of bankruptcy. It is important that you understand what Chapter 7 bankruptcy is. In addition, this article will answer three common questions people have about Chapter 7 bankruptcy.

Chapter 7, or straight bankruptcy, is a good fit- if you are in a position to sell your nonexempt property and use the money made to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to get a fresh start.

Here are a couple of common questions about Chapter 7 bankruptcy

1. Will I be harassed by people I owe money to after I file for bankruptcy? The answer is no. In fact, by law your creditors must cease all actions against you once you file. Filing for bankruptcy is a way to settle with your creditors and start over.

2. Are my bankruptcy filings made public? Yes they are public records. Although, most likely no one will find out you went bankrupt unless you choose to tell them. There are a substantial number of Chapter 7 filings that occur and most are not heavily publicized.

3. What are the most common reasons that people file for bankruptcy? Unemployment, medical expenses, overextended credit, and divorce to name a few. People often have unexpected, sudden, and large expenses that cause them to fall deeper into debt. Chapter 7 bankruptcy offers them a way to get their heads above water again.

If you think Chapter 7 bankruptcy might be a fit for you the next step is to consult with a bankruptcy attorney.

Declaring bankruptcy can be a stressful experience. Speaking with a Boston bankruptcy attorney can be a great first step. A local Boston Chapter 7 lawyer will help you decide the best path to take.