A financial crisis can happen without any notice. Sometimes, you might know you are treading water, and a minor emergency or expense will cause you to go under. If you struggle to pay debts you cannot afford, a Massachusetts bankruptcy case might be the answer to your financial trouble. Keep reading to learn how filing for bankruptcy in Bristol County can help you.
Understanding Bankruptcy Laws in Bristol County
The Bankruptcy Code is a federal law. Therefore, the bankruptcy laws in Bristol County are the same as the bankruptcy laws in all other states. The United States Supreme Court stated in 1934 that the purpose of bankruptcy law was to give an “honest but unfortunate debtor” the opportunity to get rid of debt to move forward free and clear of the discouragement and pressure of preexisting debts.
When you file for bankruptcy relief, you receive a fresh start. You can eliminate debts you cannot afford to pay or recognize your debts into a manageable bankruptcy plan. However, bankruptcy laws can be confusing. Therefore, it is important to have professional legal guidance to navigate bankruptcy, or you could make your financial trouble worse.
The Importance of Professional Legal Guidance in Navigating Bankruptcy
Filing bankruptcy in Massachusetts is not as difficult as you may assume, as long as you have the help of an experienced Bristol County bankruptcy lawyer. There are many factors you must consider before filing for bankruptcy. Filing a pro se bankruptcy case, which means you are filing without an attorney, is not recommended. Mistakes you make could result in losing your property and debts not being discharged.
Bankruptcy law is very complicated. Most attorneys without bankruptcy experience would not consider filing a bankruptcy case without help from an experienced Bristol County bankruptcy lawyer.
Key Factors to Consider When Filing for Bankruptcy in Bristol County
Before filing for bankruptcy in Bristol County, you should consider a few things. Issues to discuss with a bankruptcy attorney include:
Do I Qualify for Chapter 7 or Chapter 13?
When Congress reformed the Bankruptcy Code in 2005, it added a Means Test to qualify for Chapter 7 bankruptcy. You cannot file under Chapter 7 if you make too much money. However, you can file under Chapter 13. The following section discusses the differences between Chapter 7 vs. Chapter 13 in Massachusetts.
Will I Lose My Property if I File for Bankruptcy in Bristol County?
Most people who file for bankruptcy relief do not lose their property. Bankruptcy exemptions protect a specific amount of equity in certain assets. However, some individuals may have assets with equity over the amount of the bankruptcy exemption. Filing Chapter 13 can protect non-exempt equity so you can keep your property and get rid of debts.
Can I Get Rid of All My Debts When I File Bankruptcy?
Most unsecured debts are eligible for a bankruptcy discharge. These debts include credit cards, old tax debts, personal loans, deficiency judgments, and medical bills. Child support, most tax debt, and alimony cannot be discharged in bankruptcy. However, you can file Chapter 13 and pay the past due amounts of these debts through the Chapter 13 plan to avoid liens and court actions.
How Long Does It Take to Get a Bankruptcy Discharge in Massachusetts?
Most no-asset Chapter 7 bankruptcy cases are discharged and closed within four to six months after filing the bankruptcy petition. A Chapter 13 bankruptcy plan requires you to make payments for 36 or 60 months.
Should I File Bankruptcy to Stop Foreclosure or Repossession in Massachusetts?
Filing bankruptcy can stop home foreclosures and vehicle repossessions. However, the bankruptcy does not eliminate the debt. If you want to surrender the property through Chapter 7, you can avoid a deficiency judgment for any amount still owed on the debt after the property is sold.
Filing Chapter 13 might save your home or car. You can include the past due portion of the debt in the Chapter 13 plan. For vehicle loans, you might be able to lower your monthly payments, the amount you owe on the loan, and your interest rate, depending on the specific details of the loan agreement.
Varieties of Bankruptcy: Chapter 7 and Chapter 13 in Massachusetts
Chapter 7 bankruptcies are designed for individuals and couples who cannot afford to pay their debts. You must meet income requirements (i.e., pass the Means Test) to qualify for a bankruptcy discharge under Chapter 7. Businesses that want to shut down can also file under Chapter 7.
Filing a Chapter 7 bankruptcy is often referred to as a straight bankruptcy case or a liquidation bankruptcy. The Chapter 7 bankruptcy trustee can seize non-exempt assets to pay creditors. However, most Chapter 7 cases in Bristol County are no-asset cases, meaning the debtors keep all their assets and get rid of all or most of their debts.
Chapter 13 bankruptcy is a reorganization. Individuals or couples propose a bankruptcy plan to the court. In most cases, debtors in Chapter 13 pay a small percentage of their unsecured debts and discharge the remaining balances. Chapter 13 bankruptcy is a wage-earner bankruptcy. You must have sufficient income to fund the Chapter 13 plan.
Benefits of Hiring a Massachusetts Bankruptcy Attorney in Bristol County
An experienced Massachusetts bankruptcy attorney in Bristol County understands bankruptcy laws, including the bankruptcy exemptions that protect your property. A bankruptcy petition and schedules can be over 60 to 70 pages long. An attorney completes the paperwork and files it after you review and sign it. Your attorney appears with you in court and advocates on your behalf should an issue arise in your case.
You don’t have to worry about making a mistake that could result in losing your discharge or property. You also have someone who will fight creditors who object to your discharge or try to collect a debt included in the bankruptcy filing.
The best benefit of hiring a Bristol County bankruptcy attorney is having the peace of mind of knowing that your case is being handled correctly. Your attorney explains every step in the bankruptcy process and ensures you comply with bankruptcy laws to reduce problems with your case.
Your bankruptcy lawyer protects you from creditors and debt collectors throughout your bankruptcy case. They maximize exemptions to protect asses while maximizing debt discharge to get you the fresh start you need.
Get the Right Legal Help Today: Securing a Massachusetts Bankruptcy Attorney
At Logan A. Weinkauf, P.C., we are dedicated to helping you find an affordable solution to your debt problems. Call now for a free consultation with a Bristol County bankruptcy attorney. We will discuss bankruptcy options and other debt-relief options to help you get out of debt.