Bankruptcy
When your debt is at a level where you simply cannot catch up and cannot keep your head above water, it may be time to consider getting a fresh start by filing bankruptcy. Unfortunately, people who have been recently divorced, have lost time from work due to illness or have faced a decrease in hours due to company scale-backs often find it next to impossible to catch up.
Massachusetts Bankruptcy Protections
Consumers who are considering filing bankruptcy should be aware of the limitations. First, if your debt is student loans, child support or tax obligations, in most cases, filing bankruptcy will not help. However, if your primary debt is consumer debt, you could benefit from filing Chapter 7 or Chapter 13. The bankruptcy process involves filing a bankruptcy petition with the courts, showing a complete listing of your assets and liabilities and in the case of Chapter 13, filing a repayment plan.
Chapter 13 Bankruptcy: What it Means
Chapter 13 bankruptcy protection offers you the ability to repay your debt over a period of time, typically 60 months. For consumers who are behind on mortgage payments or rental payments, this is generally the preferable means of filing. The court will want to see a repayment plan that you can meet over the following 60 months. Most commonly, Chapter 13 is known as “wage-earners bankruptcy”.
Chapter 7: A Truly Fresh Start
Chapter 7 bankruptcy eliminates all consumer debt. In effect, your debt is completely liquidated and no longer owed to the original debtor. It is important to understand we are talking about debt that is unsecured such as credit card debt, medical bills, most liens, mortgage deficiencies, auto loan deficiencies, any other debt. Chapter 7 discharge does not apply to student loans, child support obligations, some judgments. In effect, it is as if you were not in debt at all once your bankruptcy is discharged. To qualify for Chapter 7 you must pass a means test which you should discuss with your Massachusetts bankruptcy attorney.
If you are facing constant calls from creditors, have received an eviction or foreclosure notice, it is important to understand your rights. Call the Office of Attorney Mike Tokatlyan at 978-854-6625 for a free consultation and to discuss your options.
Massachusetts Bankruptcy Protections
Consumers who are considering filing bankruptcy should be aware of the limitations. First, if your debt is student loans, child support or tax obligations, in most cases, filing bankruptcy will not help. However, if your primary debt is consumer debt, you could benefit from filing Chapter 7 or Chapter 13. The bankruptcy process involves filing a bankruptcy petition with the courts, showing a complete listing of your assets and liabilities and in the case of Chapter 13, filing a repayment plan.
Chapter 13 Bankruptcy: What it Means
Chapter 13 bankruptcy protection offers you the ability to repay your debt over a period of time, typically 60 months. For consumers who are behind on mortgage payments or rental payments, this is generally the preferable means of filing. The court will want to see a repayment plan that you can meet over the following 60 months. Most commonly, Chapter 13 is known as “wage-earners bankruptcy”.
Chapter 7: A Truly Fresh Start
Chapter 7 bankruptcy eliminates all consumer debt. In effect, your debt is completely liquidated and no longer owed to the original debtor. It is important to understand we are talking about debt that is unsecured such as credit card debt, medical bills, most liens, mortgage deficiencies, auto loan deficiencies, any other debt. Chapter 7 discharge does not apply to student loans, child support obligations, some judgments. In effect, it is as if you were not in debt at all once your bankruptcy is discharged. To qualify for Chapter 7 you must pass a means test which you should discuss with your Massachusetts bankruptcy attorney.
If you are facing constant calls from creditors, have received an eviction or foreclosure notice, it is important to understand your rights. Call the Office of Attorney Mike Tokatlyan at 978-854-6625 for a free consultation and to discuss your options.
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