Bankruptcy Lawyer MA Matthew T. Desrochers » Chapter 7 Boston

Misconceptions About Filing Personal Bankruptcy

admin — Fri, 08 Apr 2011 17:00:22 +0000

Filing bankruptcy is dishonest. Bankruptcy was designed to give you a fresh start and is a legal right intended to protect honest, hard working individuals who become unable to pay their debt.
I will lose my home and property. In actuality, filing bankruptcy could save your home from foreclosure. Soon as you file, an automatic stay will be placed and foreclosure proceedings will stop.
I won’t be able to re-establish my credit or secure a loan. It may take some time to rebuild credit after bankruptcy but many banks do actively pursue individuals who have filed bankruptcy in order to help them build their credit
I can’t own anything after because it may be seized. This will only happen if you have agreed upon bankruptcy payments of a certain amount each month and you go for several months without making your payments. The bankruptcy agreement will then be considered void and you will be once again liable for the entire debt to all of your creditors. In that event, your property would once again be at risk. Keep making timely payments and you’ll have nothing to worry about.

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

Bankruptcy Chapter 7 or Chapter 13?

admin — Thu, 17 Feb 2011 15:38:16 +0000

First, you should see if there are any options other than filing bankruptcy. After all, bankruptcy might not be the best option for you.

If you still come to the conclusion that bankruptcy is the best option, you will need to decide whether to file Chapter 7 or Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy will allow you to keep a few assets, such as a home and a car, assuming their values don’t exceed the amounts set in the U.S. Bankruptcy code. In addition, this form of bankruptcy will discharge all of your secure debts over a very short time period.

There are a few requirements that you must follow to be able to file Chapter 7.
Cannot have filed bankruptcy prior in 180 days.
Cannot have had a bankruptcy discharge in the recent 8 years if chapter 7 was filed before.
You have to receive financial counseling.
You must pass the Massachusetts Means Test.

Step 1: Compare your current income to your state median income. If your income is less than or equal to the median, you can file for Chapter 7 bankruptcy (liquidation) If your income is more than the median continue to Step 2.

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

Step 2: The Means Test

The purpose of the means test is to figure out whether you have enough disposable income, including your spouse’s income, after subtracting certain allowed expenses and required debt payments, to make payments on a Chapter 13 plan.

We will calculate the income related to the test by taking your income and residing spouse’s income. To find out whether you pass the means test, we will 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.

If you cannot file chapter 7 because of the median family income then you will be eligible to file for chapter 13.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy permits the person create a payment plan, of generally significantly less than what they owe to their creditors and after three to five years of on time payments they will have their debts be forgiven. This form of bankruptcy will allow families to save their homes from foreclosure and their cars from repossession.

There are a few guidelines that have to be followed:
The filer should have a regular income.
The filer should have a total secured debt of less than $1,010,65.
The filer should have a total of unsecured debt of less than $336,900.
The filer should receive credit counseling.
The filer cannot have a discharged bankruptcy within 4 years for Chapter 7 and within 2 years for Chapter 13.

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.

How Have the New Laws Changed the Bankruptcy Filing Process?

ntrousdale — Thu, 04 Nov 2010 16:06:47 +0000

The decision to declare personal bankruptcy is not always easy to make. As it may affect not merely your lifestyle but that of your family, it’s essential to be sure you’re opting for the correct kind of bankruptcy, at the right time. Because of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, several alterations were built upon the standard bankruptcy laws, and common procedure may be a quite different than what you currently know. Here’s a short outline concerning the laws, how they changed, and how this can impact your decision to file.

Proof of Income / Tax Returns: Those choosing to file a Chapter 7 or 13 have to present proof of ongoing income by using the former year’s tax files. If any taxes are unpaid, the bankruptcy can’t be filed before they’re paid back.

A More Restrictive ‘Automatic Stay’: The range of the automatic stay, which keeps collectors from acting to collect your debt as soon as your request is filed, is reduced somewhat. License suspensions, foreclosure measures and present court processes for child support are no longer stopped or postponed in the automatic stay.

Mandatory Education: The BAPCPA laws demand that virtually all filers go to andcompletely finish a consumer credit counseling program. This has to be provided by a government-approved establishment or coach, and again, must be finished ahead of the initial petition. Also, debtors will have to attend a monetary organization education course. This takes place right after the bankruptcy is processed but the debt hasn’t yet been dispatched.

Repayments Prioritized: Even though many of one’s financial obligations is usually to credit card agencies or some other financial institutions, repayment schedules now place a priority on support payments and alimony. These shall be paid, either entirely or over time, before other loaners.

Eligibility for Chapter 7: All debtors are going to have their eligibility calculated by a ‘means test’. This evaluation is based on a process that considers your expenditures, debts and salary, which is matched against the state average income. If you’re deemed ineligible, you may still be able to file for Chapter 13.

Understanding Boston Bankruptcy

admin — Tue, 19 Oct 2010 14:27:47 +0000

When considering which Boston bankruptcy attorneys you want to hire to help you with your bankruptcy case, you want to take into account that bankruptcy laws changed fairly recently. Experienced and competent Boston bankruptcy attorneys know how federal bankruptcy laws changed back in 2005. While you can do all the things in a bankruptcy case now that you could before 2005, it has become at least a little bit more difficult for both those seeking to file bankruptcy and for Boston bankruptcy attorneys.

One area of bankruptcy law that has changed is in filing for chapter 7 personal bankruptcy. Sometimes called straight bankruptcy, chapter 7 personal bankruptcy sees a trustee appointed by the bankruptcy court helping you to liquidate your nonexempt personal property to help pay back your creditors. It is the quickest method of bankruptcy and, usually, you receive a chapter 7 bankruptcy discharge within months.

Under the new federal bankruptcy laws passed in 2005, it has to become harder to become eligible for chapter 7 personal bankruptcy. Now to become eligible for chapter 7 personal bankruptcy, you have to take a means test to determine how much disposable income you have. Your average monthly income must equal or be less than the average monthly income for the state in which you are filing for you to be able to file for chapter 7 personal bankruptcy.

For those who are ineligible for chapter 7 personal bankruptcy, chapter 13 personal bankruptcy remains an option. Chapter 13 personal bankruptcy reorganizes your debts into a three to five year repayment plan. While it takes years for you to receive a chapter 13 personal bankruptcy discharge, you do get to keep most of your nonexempt personal property.
At any point in your bankruptcy case, as long as you are eligible for both and have not switched over once already, you can switch from chapter 7 to chapter 13 or from chapter 13 to chapter 7

Commonly Asked Massachusetts Bankruptcy Questions

admin — Mon, 28 Jun 2010 17:13:15 +0000

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?

admin — Tue, 04 May 2010 21:34:28 +0000

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.