Posts Tagged ‘Filing For Bankruptcy’

Bankruptcy Lawyers In Massachusetts – How They Can Assist You To Get On Your Feet Again.

April 30th, 2010

If you are being overwhelmed by debt, if your credit card payments are becoming too much to handle and your medical bills are on their way to drive you out of your mind, you might have no other choice but to submit an application to the courts to be declared bankrupt. For those of you who live in Michigan: there are many excellent Bankruptcy Lawyers in Massachusetts that are eager to assist you.

What is bankruptcy? It is a way to get legal protection against your creditors if you are unable to meet your debts for valid reasons. Reasons that can be put forward during the application include large medical expenses, losing your job and the loss of an income earning partner.

It is highly advisable to call in the services of a legal expert during the application process. Unless you want to walk out without a dime in your pocket.

When an application for bankruptcy is submitted to the court by your lawyer, the court will let all your creditors know about this. A meeting (‘first meeting of creditors’) will then be set up. This normally takes place 30 or 40 days after the application has been filed.

At this meeting you have to provide information about all your assets and liabilities as well as income and expenses to the presiding officer. From there on your lawyer will deal with your creditors. If a creditor should therefore turn up at your front door, you can safely refer him to the lawyer.

Should your application be approved, you will no longer have to pay the majority of your creditors. The bad news is that everything you own will become part of the insolvent estate. You will only be allowed a couple of things, normally that needed to carry on working.

Bankruptcy Lawyers in Massachusetts are law experts. They know bankruptcy law like few people know the Bible. They are also totally familiar with the whole application process. It’s therefore in your own interest to use one of them to represent you during the application and afterward.

Filing for bankruptcy is an important and difficult decision. Speaking with a Arlington Heights Bankruptcy Lawyer can help you to make a sound decision for you and your family. Speaking with a qualified Massachusetts Bankruptcy Lawyer will help you understand your options.


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Filing for Bankruptcy – When Is It The Right Choice?

March 27th, 2010

There are many reasons why people may get overwhelmingly behind on their bills with little hope of catching up. Whether due to a mistake somewhere along the way or circumstances beyond the individual or family’s control, sometimes filing for bankruptcy is the best possible choice – but it is not a decision to be taken lightly.

When considering this important issue, keep in mind that there are two different types of filings. Chapter 7 is generally for people who don’t have assets they need to protect, such as a house, or for those who don’t have enough money to pay their current bills. Chapter 13, by contrast, can restructure past due debt to help people keep their house and car. However, it is only appropriate for those who can afford their current bills plus a little extra to get caught up on back payments over time. Only you and your lawyer can decide if either type is right for you, but here are some common reasons for bankruptcy filings.

1. Loss of employment. Those who lose their jobs may find it very difficult, if not impossible, to make ends meet. In the current economic climate, it can be challenging to find another job soon enough to keep all the bills caught up. When things fall hopelessly behind, it may be time to consider this incredibly difficult option.

2. High medical bills. Serious injury or illness can cause huge medical bills that the average family or individual won’t be able to pay. When this happens, filing for Chapter 7 or 13 may be the only option to get relief from burdens of medical debt.

3. Death of wage earner. When one of the primary wage earners in a family passes away, bills that were perfectly manageable can suddenly become much too high for the family’s diminished income. Bankruptcy can give those who are in this difficult situation the fresh financial start that they need.

4. Preventing foreclosure on a home. When a foreclosure is looming and can’t be otherwise avoided, Chapter 13 can stop the process and help families and individuals keep their homes while restructuring debt to make catching up on late payments possible. Likewise, Chapter 13 will stop utilities from getting turned off.

5. Preventing a car or other assets from being repossessed. Chapter 13 bankruptcy also can restructure debt on a car or other possessions by consolidating late payments. This can allow those who are filing to keep their cars and other possessions.

6. Stopping wage garnishments. Wage garnishments can decrease a paycheck to the extent that it is hard to get by. Bankruptcy will halt most wage garnishments, with the exception of garnishments ordered by the court for child support.

It’s important to remember that bankruptcy doesn’t wipe out all debt (student loans, child support, and some taxes are examples of debt that will generally remain). Filing is extremely complicated, and bankruptcy laws vary from state to state. The consequences of a botched or ill-advised filing can haunt you for many years to come, so it’s best to not attempt it by yourself.

Hiring a local lawyer who specializes in this sensitive issue is highly recommended to ensure that the filing is done correctly and that you and your assets are protected to the fullest extent of the law. Fortunately, many lawyers offer free consultations to help you decide whether either chapter 7 or 13 could be the right choice for you. Quite a few will submit your filing for a reasonable flat fee.

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If you need a Portland, Oregon bankruptcy lawyer, call on Aurora Law Office. With a reputation for honesty and integrity and over 25 years experience, they have focused only on divorce and bankruptcy since 1996. They provide a friendly environment, free initial consultations, payment plans and flat-fee charges available for uncontested divorces and bankruptcies. Distributed by SEO 2.0 Services


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Bankruptcy in Massachusetts

March 12th, 2010

Times are generally tough for one group of people or another and it really doesn’t matter what the overall economic situation is in the country. Chances are, there are people out there — in Massachusetts and everywhere else — who are considering bankruptcy as an option to deal with their financial troubles. Well, in the Bay State, what to know about bankruptcy in Massachusetts can be important no matter the economy.

Keep in mind that the U. S. Congress made a number of changes (25 of them, to be exact) to the federal bankruptcy laws that govern bankruptcy throughout the nation. These changes were made in 2005, meaning that certain older practices may not now be valid. Additionally, each state has ensured that certain exemptions to the federal law have been placed on the books that also govern what most hope is a very last resort financial action taken by people.

Massachusetts exemptions revolve around the kinds of property that can be excluded from possible seizure and sale in the event of a bankruptcy, but there’s no simple hard-and-fast rule for determining just what can and cannot be included in a bankruptcy filing. As well, when to file (and the form of bankruptcy to file for) also depends on many different factors. Generally, these include doing so to stave off a home foreclosure or when a job is lost.

Whatever the reason, there are also two different types of bankruptcy a Bay State resident can file for, depending on specific circumstances; Chapter 7 (straight bankruptcy) and Chapter 13 (“Wage Earner Bankruptcy”). Which type of bankruptcy that will selected, as was said, depends on just what it is the filer is trying to accomplish, in accordance with the 2005 changes to the federal bankruptcy law.

In general, Chapter 7 is a liquidation and will wipe out all debts except those listed and is a way to get a fresh start. There’s a means test, a hearing and then a decision. If it’s positive, a trustee will begin an asset sale (on property not exempted by the court) and then a payoff to creditors. Chapter 13 is similar to a corporate bankruptcy, reorganization and then reemergence with a repayment plan.

Bankruptcy in Massachusetts filings begin with an official petition, a schedule and a statement of financial affairs, all of which are filed with the federal bankruptcy court. The Chapter 7 filing fee is $299 and the process can be quite intrusive in terms of personal and financial information that’ll need to be supplied. In most cases, it’s best to work with an experienced bankruptcy attorney when thinking of going this route.

Facing the prospect of filing for bankruptcy in Massachusetts can be scary. It’s important that you have confidence in your decisions and an experienced bankruptcy attorney MA can help guide you down the right path.


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Frequenty Asked Questions About Bankruptcy

February 17th, 2010

The decision to file for bankruptcy should not be taken lightly. I’ve addressed a few of the more common questions that come up when people are considering bankruptcy.

Will filing for bankruptcy stop creditor harassment?

There is nothing quite and stressful and downright miserable as fending off creditors. They are relentless calling, leaving messages, sending emails, etc. By filing bankruptcy, you will be granted an automatic stay order. What an automatic stay order does is that it makes is illegal for a creditor to call you any longer. This is a nice side benefit of filing.

What is a debt discharge mean when I file for bankruptcy?

When you are eligible for Chapter 7 bankruptcy and decide to move forward with your filing, a debt discharge will wipe away all previous debt. What a Chapter 7 debt discharge does is take away any outstanding debt liability. In other words, you don’t have to pay those debts off. Not everyone qualifies for Chapter 7 bankruptcy. Speaking with a bankruptcy attorney is the best way to find out what the right solution for you is.

Does filing for bankruptcy ruin my credit?

Often times people that decide to file for bankruptcy have problems with their credit before filing. Bankruptcy can offer a great way to take back control over their personal finances. In fact, many times credit scores will improve over time once bankruptcy is declared.

Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.

You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy attorney MA can help you get a fresh start. If you are considering filing bankruptcy in Massachusetts we can help.


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Chapter 7 Bankruptcy Information: Learn About Your Fresh Start

January 29th, 2010

From the beginning of America’s recent recession through the present day, there has been a lot of talk about debt and bankruptcy. Since it is perhaps the clearest way for debtors to get a clean slate and get on with their lives, there is a lot of Chapter 7 bankruptcy information that is helpful to know. Anyone in serious financial trouble, however, should definitely consider seeing a lawyer that specializes in bankruptcy law. That being said, what does Chapter 7 bankruptcy mean for debtors and who can apply for it?

A Chapter 7 bankruptcy is one way of getting clear of insurmountable debts. With a Chapter 7 filing, all property not exempted under federal or state law is subject to liquidation. Those assets are sold to reimburse creditors, and then the remainder of the debts is erased. Under Chapter 7, debtors do not have to repay their creditors under a repayment plan beyond what occurs in the liquidation phase.

There are only two initial requirements to file a Chapter 7 claim. The first is that the debtor, whether it is an individual or a business entity, meet with a credit counselor up to 180 days before the claim is filed. The debtors record must also be clear of malfeasance with the bankruptcy court system for 180 days or more, otherwise they may be disqualified. Not taken into consideration are the amounts owed by the debtor(s), nor their financial solvency. In other words, Chapter 7 does not require that someone be destitute to qualify for a clean debt slate.

Of course, the court system isn’t about to let someone clear their debts if they are clearly capable of paying them but refusing to do so. Thus, the federal government developed a ‘means test’ to figure out whether or not someone is trying to abuse the system with his or her petition.

The first part of the test depends on how much an individual has earned monthly over the past five years in comparison to the median income of the state they’ve resided in during that period. Unsecured debt, or debt that isn’t secured by some form of collateral, is key to understanding the second part. Usually, credit card debt is unsecured debt. Your expenses cannot go beyond twenty five percent of their unsecured debt, otherwise the court perceives that the debtor is filing an abusive claim. At that point, the debtor will either have his case dismissed or have to file for Chapter 13.

A Chapter 13 claim is very different from a chapter 7 claim. Under Chapter 13, a debtor is placed under a five-year repayment plan to his creditors. The amount left over after that period is dismissed under Chapter 7, and no property is liquidated.

Since the exemptions to what is liquidated under Chapter 7 don’t include very much at all, those debtors wishing to keep the majority of the property that either has a lien on it or is the cause of debt would probably seek an alternative route to repayment. Likewise, Chapter 7 probably isn’t right for those who wish to keep their business going. Another alternative, of course, is coming up with a repayment plan outside of court and avoiding the fees of filing for bankruptcy.

Armed with Chapter 7 Bankruptcy information, it’s clear that your finances are going to be subject to intense scrutiny by the bankruptcy process. This is so that Chapter 7 can do exactly what it is meant to do: provide a means by which honest debtors can get their lives back on track.

Anyone in serious financial trouble should definitely consider seeing a lawyer that specializes in bankruptcy law. That being said, what does Chapter 7 Bankruptcy Information and Chapter 13 Bankruptcy Rules mean for debtors and who can apply for it?


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