Can Bankruptcy help me

Can Bankruptcy Help me?

It’s an option that you should consider if your finances are not in order. Many people who file for Bankruptcy have experienced a lot of financial and psychological relief. Bankruptcy is often the only way to financial freedom and a fresh start. Getting rid of the debt burden can help you be creative and strengthen your family. This site explains the process, the pros, and the fees. What is Bankruptcy? If done correctly, most people who have serious debt problems can make their problems disappear. Although Bankruptcy can be very helpful to people with severe debt problems, it is not an easy process. Although some of the negatives will be discussed, they are far more frightening than real for most people. In the end, Bankruptcy is a way to help many people who are unable to pay their entire debts. Although Bankruptcy has negative aspects, it has lasting popularity because almost everyone walks away with a net financial and personal gain.

Another benefit of filing for Bankruptcy in Massachusetts is having an insolvency attorney represent you during bankruptcy proceedings. It is not something that anyone wants to do. Bankruptcy can be a disadvantage if you have assets that could be sold at auctions to repay your creditors. However, it does not have to be this way, and many people don’t sell assets when they go through Bankruptcy. Additional problems could be anxiety about filing the paperwork required to move forward. These anxieties are temporary.

Another negative aspect of Bankruptcy in Massachusetts is the cost of hiring an insolvency attorney to manage your case. An expert lawyer can help you navigate the process and save you money. Many people suggest that you avoid Bankruptcy. However, it is best to deal with it to improve your financial position. Many people need to file for Bankruptcy. Although Bankruptcy is not something everyone should do, it is a necessity for many people. These filings can be very confusing, and you will be unable to handle them all alone. One thing is sure: you need to hire a licensed bankruptcy lawyer to handle your Bankruptcy.

What is Bankruptcy? Why Do People File for It?

Bankruptcy can be described as federal law. It’s designed to help people get a fresh start without any debt. A bankruptcy discharges someone from any of their dischargeable debts (chapter 7) and reduces them to a manageable amount. The person also maintains a payment schedule for three to five years (chapter 13). While Bankruptcy can be a relief from some financial difficulties, it is not charity. They encourage entrepreneurs to take risks and provide the freedom the U.S. economy needs for growth. A path to economic redemption is necessary to encourage risk-taking.

Why do people file for Bankruptcy? These are the most common situations we have seen:

  1. While trying to maintain your current debts, you are borrowing money from one credit
    card to pay another (robbing Peter to pay Paul). This is a house made of cards, and it will not last.
  2. While you are trying to pay off your debts by saving, you can also see when your savings will run dry. Don’t wait!
  3. While you may be trying to pay off your debts, you don’t have the necessities of life.
  4. You are in default on your credit card debt. Now you are dealing with debt collectors that are rude and harassing.
  5. You are currently being sued for credit card debts that you have not paid and have already been convicted in civil court.
  6. Perhaps you’ve investigated credit counseling but could not afford the payment or, worse, have been scammed out of your money.
  7. You’ve lost your job or experienced a decrease in your income.
  8. Due to an accident or illness, you have accrued substantial medical debt.
  9. You default on your house or car payment and could face foreclosure or repossession of your car.
  10. A company failed or is currently failing.

People often feel ashamed and hopeless in these situations. Don’t despair! There is always hope. Although Bankruptcy sounds terrifying, it is not something you should take lightly. It is your responsibility to know your options; your choices now will determine where you end up in years to come. Your debts, assets, and income will determine where you fall in Bankruptcy. If you contact us, we will let you know where you stand.


Bankruptcy Lawyers in East Longmeadow MA

What is the Massachusetts Bankruptcy Exemptions

First, you will need to choose between (1) the federal bankruptcy exempts and (2) the exemptions under Massachusetts or federal non-bankruptcy laws. This is an important decision you and your bankruptcy lawyer will make together, and it will depend on the value and nature of your property.

The homestead exemption is often the reason Massachusetts exemptions are chosen. This exemption is very important for homeowners who have equity in their homes. Suppose you properly file a declaration of homestead at the correct registry of deeds. In that case, you can exempt up to $500,000 from your equity in your primary residence even though it was filed before your bankruptcy filing. New rules limit the amount of the bankruptcy homestead to $146.450 (adjusted from $136.875) if the property is acquired within 1215 calendar days of the bankruptcy petition date. If you purchased a new property in the same state and transferred your equity from that home to your new one, this “1215-day rule” is not applicable. Homestead protection in Massachusetts will be available for homeowners who file cases after March 16, 2011. This includes primary residences.

There are many other exemptions available under Massachusetts law and federal non-bankruptcy legislation. You can think of the following: 401(k), certain retirement accounts and death benefits, social security benefits and veterans’ benefits, unemployment, workers’ compensation, and specific personal property or pensions. Massachusetts updated the exemptions from personal property in January 2011. These were in effect as of April 7, 2011. As I mentioned above, there will be a choice between state and federal exemptions. The 2011 law makes state exemptions more attractive to consumers, while the federal exemptions remain as they are. Here is a table of the new and old state exemptions for personal property.

Credit and Bankruptcy

Your credit rating is affected by Bankruptcy. It can help you rebuild your credit later by getting rid of the debts causing you problems. It’s like a quick band-aid. After enough time, Bankruptcy is removed from your credit report. A Chapter 7 bankruptcy will be on your credit reports for 10 years. A Chapter 13 bankruptcy will only remain on your credit reports for seven years. These periods start once the case has been filed and not after it is closed.

Many people have already suffered severe credit damage before filing for Bankruptcy. Any missed payments, lawsuits, or foreclosures will be included on your credit report for seven years. Your credit report will be affected for seven years after the event. It is essential, to be honest about the question. Although Bankruptcy can significantly impact your credit score, it is usually not a major one. Fear of credit damage is often exaggerated and can cause paralysis. People rebuild credit quickly following Bankruptcy, even though the Bankruptcy is still on their credit reports. Your credit score is not just determined by the presence of Bankruptcy on your credit report. Although it is an essential factor, other positive data can help to offset it. Many of our clients have told us that they were surprised at the ease with which credit is available after Bankruptcy.


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