Debt problems can cause anxiety, fear, and frustration. You work hard to pay your bills but cannot seem to pay them off. If you are experiencing a financial problem, our Stoughton bankruptcy lawyers at Logan A. Weinkauf, P.C. can help. During an initial no-cost consultation, we’ll review your situation and discuss debt relief options.

A financial crisis should not ruin your future. You should not need to fear being in debt forever. Whether you are dealing with tax problems, foreclosure, repossession, wage garnishments, or credit card debt, bankruptcy provides a way to resolve your debt problems and get the fresh start you need.

At Logan A. Weinkauf, P.C., we’ll explore several options to help you get out of debt. Chapter 7 and Chapter 13 bankruptcy may be the best solution for your financial troubles. However, some individuals may benefit from debt settlement and other forms of debt relief. Our goal is to develop a debt relief plan that allows you to take control of your finances so you can recover financial health.

Call Logan A. Weinkauf, P.C., to schedule a free consultation with a Stoughton bankruptcy lawyer. Let us help you find the solution to your debt problems.

Overview of Chapter 7 Bankruptcy in Stoughton, MA

Chapter 7 bankruptcy cases are intended to help individuals who cannot afford to pay their debts. Companies can also file under Chapter 7, but the company is closed and liquidated to pay its debts.

You must pass a Means Test to be eligible for a bankruptcy discharge under Chapter 7. A bankruptcy discharge eliminates the legal liability to repay a debt. Creditors cannot try to collect a discharged debt. If your disposable income is above a certain threshold, you may not be eligible for a discharge in Chapter 7. However, Chapter 13 bankruptcy may be an option.

A Chapter 7 case can help you get rid of debts, including:

  • Medical bills
  • Credit card debt
  • Most personal loans without collateral
  • Old lease and rent payments
  • Some old income tax debts

You cannot discharge alimony, child support, student loans, newer tax debts, restitution, and most debts owed to the government. Also, if you want to keep your home, car, or other collateral that secures loans, you need to continue paying those loans. If not, you can surrender the collateral in full satisfaction of the debt.

You might hesitate to file for Chapter 7 because you have heard it is the “liquidation” bankruptcy. Yes, Chapter 7 is a liquidation bankruptcy option. A Chapter 7 trustee reviews your assets to determine if they can sell the assets to repay your debts. However, most Chapter 7 cases filed in Stoughton are no-asset cases. That means the debtor (i.e., the person filing the bankruptcy case) eliminates their debts and keeps all their property.

Bankruptcy exemptions protect the equity in specific property. Massachusetts allows debtors to choose between federal bankruptcy exemptions and Massachusetts bankruptcy exemptions. Exempt equity cannot be used to repay debts. Therefore, the trustee will not seize assets unless there is non-exempt equity the trustee believes is sufficient to justify selling the asset to pay creditors.

At Logan A. Weinkauf, P.C., our Stoughton bankruptcy lawyers carefully analyze your debts, income, expenses, and property to determine if Chapter 7 offers you the best debt relief options. If not, we explore Chapter 13 as an alternative to Chapter 7.

Overview of Chapter 13 Bankruptcy in Stoughton, MA

A Chapter 13 bankruptcy is a court-supervised reorganization of debts for individuals. Corporations cannot file under Chapter 13, but self-employed individuals may file under Chapter 13.

Chapter 13 is called a wage-earner bankruptcy because debtors must have the income to pay a Chapter 13 plan. The Chapter 13 plan reorganizes your debts into an affordable monthly payment. A Chapter 13 trustee uses your monthly payments to pay your creditors according to the terms of your confirmed Chapter 13 plan.

Chapter 13 bankruptcy has several benefits not available in a Chapter 7 case. Chapter 13 benefits include:

  • Protect non-exempt equity in property from your creditors.
  • Stop a foreclosure of your home and allow you to catch up on the past-due mortgage payments through the Chapter 13 plan.
  • Discharge unsecured debts for less than you owe to the creditors.
  • Include past-due alimony and child support in your Chapter 13 plan. You must remain current with all future domestic support payments during your Chapter 13 case.
  • Stop repossession of your vehicles. Sometimes, a debtor can restructure the car loan to lower the interest rate and monthly payment.
  • Value a second mortgage at zero if your home is worth less than you owe to your first mortgage company. The second mortgage becomes an unsecured debt discharged after finishing your Chapter 13 case.
  • Include non-dischargeable taxes in the Chapter 13 plan to get rid of debts owed to the government.

Most Chapter 13 plans require payments for five years, but some debtors qualify for 36-month plans. Chapter 13 payments are based on your disposable income and other factors, including your debts and equity in assets.

At Logan A. Weinkauf, P.C., our Stoughton bankruptcy attorneys diligently work to keep your Chapter 13 plan payment as low as possible. We calculate the plan based on the lowest payment allowed by law. However, the plan payment could increase slightly when the court confirms the plan.

Overview of Chapter 11 Bankruptcy in Stoughton, MA

Chapter 11 bankruptcy allows companies to reorganize their debts to avoid liquidation. A Chapter 11 case is more flexible than a Chapter 13 and has more tools to help businesses avoid going under. Chapter 11 is also available for individuals who exceed the limits to file under Chapter 13.

Filing under Chapter 11 allows a company to continue operating while negotiating debts with its creditors. The company may surrender some assets, renegotiate loan terms, restructure leases, and utilize other options to reorganize. Creditors must vote in favor of the Chapter 11 plan. A confirmed Chapter 11 plan becomes a legally enforceable contract between the company and its creditors.

Most creditors have an incentive to work with a company in Chapter 11 because they stand to receive more money than if the company closes and files Chapter 7. However, the different classes of creditors (i.e., secured, unsecured, etc.) may have different views and interests, making negotiating a plan challenging in some situations.

Chapter 11 is much more costly and more time-consuming than Chapter 13. If you have questions about Chapter 11, talk with our Stoughton bankruptcy lawyers.

Can an Immigrant File for Bankruptcy Relief in Stoughton, MA?

Stoughton has a large immigrant population who may wonder if they have the right to file for bankruptcy relief. Many immigrant families struggle to make ends meet, even though they work two or more jobs. Fortunately, you do not need to be a citizen or legal resident to file for bankruptcy relief under US bankruptcy laws. If you own property in the United States, have a business, or live in Stoughton, you can file for bankruptcy relief.

Depending on their legal status, immigrants may face challenges when filing for bankruptcy. If you have questions about filing bankruptcy as an immigrant, contact our Stoughton bankruptcy lawyers for a free consultation to discuss your debt relief options.

Our Stoughton Bankruptcy Lawyers Can Help You With Other Debt Relief Matters

As experienced Stoughton bankruptcy lawyers, we have extensive experience handling all matters related to debt relief. Our attorneys can help you with matters related to:

At Logan A. Weinkauf, P.C., we want to help you find the best solution to your debt problems. We’ll discuss all options with you to help you decide which option works best for your situation.

Contact Us for a Free Consultation With a Stoughton Bankruptcy Attorney

You do not need to face your financial problems alone. Call Logan A. Weinkauf, P.C., to meet with a Stoughton bankruptcy lawyer for a no-obligation, no-cost consultation. We are here to help you when you need a trusted legal advocate on your side as you work to resolve your debt problems.