What To Know About Bankruptcy In Massachusetts
Times are generally tough for one group of people or another and it really doesn’t matter what the overall economic situation is in the country. Chances are, there are people out there — in Massachusetts and everywhere else — who are considering bankruptcy as an option to deal with their financial troubles. Well, in the Bay State, what to know about bankruptcy in Massachusetts can be important no matter the economy.
In 2005, the federal laws governing bankruptcy across the nation were revised in certain ways. Each state also has exemptions on the books that help to deal with differences in a state’s laws and Massachusetts is no different. Congress passed a series of changes to bankruptcy procedures (25 of them, to be exact), so keep that in mind when considering bankruptcy as an option to deal with financial ills.
Bay State residents can expect several different exemptions that revolve around the exclusion of certain property, for the most part. It’s hard to put down exactly when might be the right time to file for bankruptcy, just as there are no definites when it comes to what can be included and what can be excluded from a filing. As was said, there are many different reasons for why people file, with home foreclosure and job loss be two of the biggest ones.
Whatever the reason, there are also two different types of bankruptcy a Bay State resident can file for, depending on specific circumstances; Chapter 7 (straight bankruptcy) and Chapter 13 (“Wage Earner Bankruptcy”). Which type of bankruptcy that will selected, as was said, depends on just what it is the filer is trying to accomplish, in accordance with the 2005 changes to the federal bankruptcy law.
In general, Chapter 7 is a liquidation and will wipe out all debts except those listed and is a way to get a fresh start. There’s a means test, a hearing and then a decision. If it’s positive, a trustee will begin an asset sale (on property not exempted by the court) and then a payoff to creditors. Chapter 13 is similar to a corporate bankruptcy, reorganization and then reemergence with a repayment plan.
Bankruptcy in Massachusetts filings begin with an official petition, a schedule and a statement of financial affairs, all of which are filed with the federal bankruptcy court. The Chapter 7 filing fee is $299 and the process can be quite intrusive in terms of personal and financial information that’ll need to be supplied. In most cases, it’s best to work with an experienced bankruptcy attorney when thinking of going this route.
Facing the prospect of filing for bankruptcy in Massachusetts can be scary. It’s important that you have confidence in your decision making and an experienced bankruptcy lawyer MA can help guide you down the right path.