Chapter 7 Bankruptcy – 3 things you Need to Know

Massachusetts Chapter 7 Bankruptcy: 3 Things You Need To Know

The most common bankruptcy in America is Chapter 7. It would be no surprise, for example, that the majority of 3,529 bankruptcy filings in Massachusetts that ended June 30, 2021, were Chapter 7 bankruptcy. If you prefer to see rather than read, please use the Massachusetts Chapter 7 Calculator below to estimate your qualification and cost. Chapter 7 bankruptcy is often preferred over other options such as Chapter 13 bankruptcy, Chapter 13 negotiation, debt management, and debt payoff plan. Let’s examine these variables in more detail.

3 things to remember when you file for Chapter 7 bankruptcy in Massachusetts.

1. What are the costs of a Chapter 7 bankruptcy?
2. What alternatives are there to Chapter 7 bankruptcy
3. What specific information is needed about Chapter 7 bankruptcy in Massachusetts?

How fast can you get relief in a Chapter 7 bankruptcy in Massachusetts?

In Massachusetts, you can often obtain a Chapter 7 bankruptcy dissolution within 120 days. This is the average time to finish a Chapter 7 no-asset case in Massachusetts. A no-asset is generally a person who does not have a home or any other assets that are exempt from the Massachusetts bankruptcy exemptions.

What is the cost of filing for Chapter 7 bankruptcy in Massachusetts?

The Chapter 7 bankruptcy cost in Chelsea- Boston, East Longmeadow, Springfield- Peabody is between $500 and $3000. However, Chapter 7 bankruptcy costs in Massachusetts are different. You may find that the Chapter 7 bankruptcy cost is different depending on whether you file in Springfield or Worcester. You may be charged a Chapter 7 bankruptcy attorney’s fee in Springfield of $1,200, while you would pay $2,200 for the Boston bankruptcy attorney fee. For more information on the cost of filing Chapter 7 bankruptcy in Massachusetts, you can check the cost. Filing fee waivers can also be used to reduce bankruptcy filing costs. The Massachusetts filing fees waiver information is worth looking at.

How do I qualify for Chapter 7 Boston Bankruptcy?

Chapter 7 bankruptcy filings near Boston Lynn is for those who can’t afford to pay all of their debts. To be eligible for Chapter 7 lawyers near me for bankruptcy discharge (forgiveness), you will need to pass an income assessment.

You can eliminate most unsecured debts by Chapter 7 if you pass the Massachusetts bankruptcy mean test. Unsecured Debts Discharged in Chapter 7 are medical bills, personal loans, and some old income tax debt. Credit card debts and most personal judgments are also included. Unsecured creditors are those who have unsecured debts.

What about Chapter 7 secured debts?

However, if you wish to eliminate secured debts such as car loans or mortgages in Chapter 7, you must surrender the asset to your creditor. The asset must be accepted by the creditor as payment in full of the amount owed. Let’s see how we can help you get Chapter 7 bankruptcy.

Chapter 7 Qualification via Massachusetts Means Test

The Bankruptcy Methods Test is an essential part of filing for bankruptcy relief. The Means Test is a bankruptcy form that calculates your average monthly and annual income. This test will compare your payment to the Massachusetts median income. You may be eligible for Chapter 7 bankruptcy discharge if your annual or median income falls below the Massachusetts median income. Use the calculator below to determine if you qualify for Chapter 7 bankruptcy.

Help! Help!

If your state median income is higher than yours, you might need to take part 2 of this means test or look for an alternative. The Means Test is two-part and not just a pass-fail test. You can pass the first section if you fail the second and still be eligible under Chapter 7.

Do I risk losing my possessions if Chapter 7 bankruptcy is filed? Learn about Massachusetts bankruptcy exemptions

Bankruptcy exemptions protect the equity in the property during bankruptcy proceedings. Property that is not covered by bankruptcy exemptions can be sold in a Chapter 7 Liquidation Case. Non-exempt equity can also increase the bankruptcy plan payments in Chapter 13 cases. People want to protect their most asset, their home. Below is the Massachusetts bankruptcy homestead exemption.

Homestead exemptions are often reduced by your age or whether you’re married.

  1. Singles and those under 65: $500,000
  2. Singles 65 years old and older: $500,000
  3. For married couples and those under 65: $500,000
  4. For couples 65 years of age or older, $500,000

Massachusetts Chapter 7 Bankruptcy Pros and Cons

Massachusetts Chapter 7 Bankruptcy Income Limits

Based on Census Bureau and IRS data, the Massachusetts median income figures are updated periodically for the Means Test. Massachusetts median Income for bankruptcy filings filed after April 1, 2022, is:

  1. # of people’s annual Income
  2. $75,077
  3. $96,358
  4. $117,415
  5. $148,713
  6. $157,713
  7. $166,713
  8. $175,713
  9. $184,713
  10. $193,713

Add $9,000 to each family member in Massachusetts households with over 9 members. When calculating the Means Test, you should always check the US Trustees’ Website to verify the most recent figures. Chapter 7 bankruptcy in Chelsea- Massachusetts, is like any other debt relief option. There are pros and cons that you should consider. You may have equity in a Boston home that is higher than the exemption. Your home could be lost if you file for Chapter 7 bankruptcy. Let’s look at the pros and cons.


1. The cheapest options for debt relief are often the best.
2. Receive discharge in about 120 days
3. Possibility to keep your home and possessions.
4. Stop debt collection lawsuits
5. No more deficiencies
6. It can help you get rid of unaffordable unsecured loans


1. Qualification requirements include income requirements
2. You could lose your home or other possessions if you exceed the exemption.
3. Ten-year negative credit impact from negative credit reports.
4. In some cases, negative credit scores can have an impact on your credit score
5. Non-dischargeable debt.
6. It is difficult to stop foreclosure


Bankruptcy Lawyers in East Longmeadow MA

1. Alternatives to Chapter 7 Bankruptcy In Massachusetts

Let’s talk about Chapter 7 bankruptcy options in Revere Massachusetts if you don’t qualify for Chapter 7 or have too much wealth, or don’t want to pursue Chapter 7 bankruptcy.

1. Chapter 13 Bankruptcy In Massachusetts

Wage garnishments are also stopped. Chapter 13 bankruptcy allows you to repay past-due car and mortgage payments over three-to-five-year periods through a bankruptcy plan. Massachusetts may enable you to decrease unpaid child maintenance or alimony. To remain in Chapter 13, you must resume normal domestic support payments. If they meet certain conditions, Chapter 13 plans allow some debtors (the person filing bankruptcy) to lower their car loan payments or erase second mortgages.

Are you able to afford Chapter 13 bankruptcy?

Let’s suppose you are not eligible for a Massachusetts Revere Chapter 7 bankruptcy. Instead, you want to know if you should file a Chapter 13 bankruptcy. Is it possible to afford it? Although it may seem odd to ask if you can afford bankruptcy, it is an important question. To determine if you can afford Chapter 13 bankruptcy, use the Chapter 13 Calculator below. This will allow you to calculate how much you can afford each month.

1. Debt Relief

MA debt resolution is often less expensive than Debt Management or Debt Payoff Planning because the debt management company negotiates a lower amount of your total debt. The pricing differences between debt management and debt settlement were discussed in our article. If you’re considering debt settlement, consider the following: Credit Debt Settlement Pros and Cons, Score Impact, and Avoiding Debt Settlement Companies with red flags.

1. Massachusetts Debt Management

Debt settlement companies negotiate lower amounts. Debt management companies negotiate lower interest rates. This is the main distinction. These programs can last for three to five years. This option can be more costly than debt settlement and may not be available to some creditors like personal loan lenders. Credit score implications may also be available for debt management. For whom is debt management in Massachusetts most beneficial? For those with high-interest credit card debt, debt management might be the best option. A reduction of 22-30% to a 10% rate would make the debt more affordable.

1. Massachusetts Debt Payment Off Planning

There are ways to get rid of debt. One way is to cut down on expenses and put extra money into certain debts to avoid interest. The financial hardship may make it difficult for you to achieve this goal. However, the Savvy Debt Payoff Planner can help you prioritize your debts. The savvy and snowball debt payment methods are both used in the app, which saves you about $2,000 per year.

1. Massachusetts Chapter 7 Bankruptcy Information

Suppose you have completed the above steps and are now considering whether Chapter 7 bankruptcy in Boston might be the best option for you. Let’s look at some characteristics of filing Chapter 7 bankruptcy in Massachusetts.

Chapter 7 Bankruptcy Massachusetts Credit Counseling and Debtor Education Classes

To receive a bankruptcy discharge, you must take two courses in bankruptcy before you can file for Chapter 7 bankruptcy relief. You must complete a credit class counseling before you file a bankruptcy case and a debtor education class after you have filed. Below are the Massachusetts-approved courses.

  1. Credit Counseling Courses
  2. Debtor Education Approved Classes

The United States Trustee has approved certain companies in each state that offer bankruptcy training. The UST website provides a listing of Massachusetts companies that offer bankruptcy courses. Both courses can be accessed online for a small charge.

Massachusetts Chapter 7 Bankruptcy Court Locations

Due to the pandemic, many 341 creditors’ meetings have taken place over the phone or via Zoom. If you need to meet in person, it is worth checking out the Massachusetts courthouse. Based on your bankruptcy district, the following are the locations of the courts for filing bankruptcy.


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