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Massachusetts Personal Bankruptcy Lawyers

Boston Massachusetts Personal Bankruptcy Lawyers; Chapter 7 Bankruptcy Attorney, Chapter 13 Bankruptcy Law Firm

The Massachusetts Bankruptcy lawyers at Grantham & Associates have years of experiences assisting Massachusetts residents with their debt problems. We represent clients in Boston and Cambridge, from Cape Cod to Danvers and throughout Eastern Massachusetts.

The Bankruptcy Process:
What to Expect When you File Bankruptcy

Once you retain us to represent you, you will have to provide us with copies of paychecks, bank statements and tax returns. Moreover, you will have to fill out a personal bankruptcy questionnaire. Using this information, your bankruptcy attorney will prepare your petition.

You will have to take a credit-counseling course either online or on the telephone. After you complete this course, our attorneys will meet with you to review and have you sign your bankruptcy petition. After you sign, your petition will be filed with the Bankruptcy court in Boston.

A few weeks after filing, you will have to attend what is known as a 341 hearing. At this meeting, you will answer a few questions from a bankruptcy trustee. (the trustee is an attorney who is assigned to oversee your case). In most cases, this is the only hearing you will have to attend; and one of our lawyers will accompany you. The 341 hearing is brief and the trustee will ask you some questions such as why you have to file Bankruptcy. After the hearing, you will have to complete a second credit counseling session. Once the court receives your certificate of course completion, your debts will be discharged. The process takes approximately 100 days from the date that we actually file your petition.

To find out if Bankruptcy is right for you, contact a Massachusetts Bankruptcy Lawyer by filling out our Bankruptcy Consultation Form, or calling (617) 497-5291.

Chapter 7 or Chapter 13 Bankruptcy?

Under the current bankruptcy laws, there are two criteria that will determine if a debtor should file under a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.

1. Income Level

The first step in figuring out whether you can file for Chapter 7 is to measure your "current monthly income" against the median income for a family of your size in your state. Your "current monthly income" is your average income over the last six months before you file. If your income is less than or equal to the median, you can file for Chapter 7. Click here to see the allowable income levels for Massachusetts.

If your income is more than the median, however, you must pass "the means test" -- another requirement of the new law -- in order to file for Chapter 7.

2. Disposable Income and the Means Test

If your income is over the Massachusetts state median then a complicated mathematical calculation is used to determine what type of bankruptcy a debtor must file. The debtors income is compared to allowable expenses as established by the U.S. Census Bureau and the IRS. If the debtor has sufficient disposable income to repay a portion of their debt over five years, then the debtor must file under a Chapter 13 Bankruptcy.

To find out which chapter is right for you, contact a Massachusetts Bankruptcy Lawyer by filling out our Bankruptcy Consultation Form, or calling (617) 497-5291.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common form of bankruptcy protection. Chapter 7 Bankruptcy is a liquidation whereby a debtor's assets that are not exempt under Massachusetts law can be sold to repay creditors.

In a Chapter 7 Bankruptcy, a debtors "general" unsecured debts can be "discharged" without any type of repayment. The person who is filing bankruptcy is entitled to keep her personal property so long as that property does not exceed a certain value. Property that a person gets to keep is known a "exempt." Examples of exempt property are clothing, certain retirement accounts such as a 401k and home furnishings. Property that is not exempt may be sold to satisfy creditors. Examples of non-exempt property include stocks, expensive jewelry, and cash.

Exemptions

Debtors are entitled to retain certain types of property up to a certain value, these are known as "exemptions". There are many exemptions available to Massachusetts Residents. Typical exemptions include clothing, equity in their home up to $500,000, and qualified retirement accounts. Is it important to work with a qualified attorney in order to ensure that you do no loose any property you are entitled to; contact us today to schedule your free consultation.

Non-Dischargeable Debts

Not all debts can be discharged. First, secured debts cannot be discharged; so even if you file bankruptcy you will be responsible for your mortgage and car note. Other types of non-dischargeable debts include: child support, judgments for fraud, alimony, student loans and most tax debts. This is not an exhaustive list, so contact one of our bankruptcy lawyers if you have any questions about dischargeable debts.

Income Taxes

Under some circumstances, income taxes may be dischargeable. In order to be dischargeable, the tax debt must not have occurred because of fraud or evasion, must have been assessed at least 240 days prior to filing, nor not assessed, and the debt is at least three years old and a return was filed.

To for more information on Personal Bankruptcy, contact a Massachusetts Bankruptcy Lawyer by filling out our Bankruptcy Consultation Form, or calling (617) 497-5291.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is designed for individuals with regular incomes who have the ability to repay a portion of their debts. In most circumstances, Chapter 13 Bankruptcy is generally the only form of bankruptcy protection available to you if your income is above the Massachusetts median income.

In a Chapter 13 Bankruptcy your attorney will help you create a debt repayment plan (known as a Chapter 13 Plan) that will allow you to pay back a certain percentage of your debts over the course of three to five years.

The amount repaid through the Chapter 13 Plan is determined by subtracting your household living expenses from your household income. Any income that is left over after basic expenses such as rent and mortgage, electric utilities, car payments, and insurance will be paid to the bankruptcy trustee. The bankruptcy trustee, in turn, will pay your creditors according to your Chapter 13 repayment plan.

Foreclosure & The Automatic Stay

A Chapter 13 bankruptcy will stop any foreclosure proceedings against you.  As long as the petition is filed prior to the completion of the foreclosure sale, you may prevent the bank from auctioning the property.  However, in order to keep the property, you must have the ability to repay your arrears over the course of five years, while also making your usual monthly mortgage payments.

To find out more about Chapter 13 Bankruptcy, contact a Massachusetts Bankruptcy Lawyer by filling out our Bankruptcy Consultation Form, or calling (617) 497-5291.

Free Bankruptcy Consultation and Payment Options
Call (617) 497-5291

At Grantham & Associates, P.C., we offer a FREE one hour consultation with all potential new bankruptcy clients. This gives you an opportunity to meet, or speak with the bankruptcy attorney that will be working with you on your matter. Moreover, we offer simple flat rates and allow you to pay your legal fees in monthly installments.

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The Boston bankruptcy lawyers at Grantham & Associates operate as a debt relief agency located in Cambridge, Massachusetts and serving clients in Boston and eastern Massachusetts, including Cambridge, Braintree, Somerville, Revere, Brockton, Chelsea, Peabody, Quincy, Saugus, Winthrop, and the following counties: Essex, Middlesex, Norfolk, Plymouth, and Suffolk.

Disclaimer: The material contained on this Massachusetts Bankruptcy law firm website is considered advertising by the Massachusetts Supreme Judicial Court