Bace Law Group, LLC

All Mailings:

PO Box 9316

Boston, MA 02114

P: 508.922.8328

By Appt. Only:

197 Portland St., 5th Fl

Boston, MA 02114

F: 866.700.0181

Bankruptcy

Bankruptcy - A Remedy Under the Law

Chapter 7

Chapter 7 Bankruptcy is an asset-based form of debt resolution in which creditors are paid through the liquidation of the debtor’s assets. Chapter 7 Bankruptcy is meant to allow eligible debtors a fresh start without stripping them entirely clean and forcing them to start over. Despite what you may think, most people considering bankruptcy are still eligible to file under Chapter 7. If you are interested in this possibility, please contact Bace Law Group, LLC to speak with an experienced bankruptcy lawyer.

Chapter 7 Bankruptcy is not right for everyone. It may be best suited to those considering bankruptcy primarily because of unsecured debt involving credit cards, medical bills, or personal loans AND those without too much secured debt as well. In order to be eligible, you as a debtor must not have had a Chapter 7 discharge in the last eight years, and you must pass the Chapter 7 “means” test. What this means is that your household income over the past six months is compared to that of similarly situated people, statewide. If your average income falls below the median, you “pass” the test. If it falls above, or is higher than the median, then your monthly debt payments along with reasonable living expenses are calculated. If you are not able to pay at least $10,000 over a period of 60 months ($166/month), then you may also “pass”.

As soon as Chapter 7 is filed, an automatic stay goes into effect. Once creditors know you have filed, they CANNOT contact you regarding your debt while your case is pending. A trustee will be appointed by the court to oversee your case. This trustee will meet with your creditors- a meeting you, as the debtor, must also attend. In many instances, creditors fail to show up for this meeting. Under Massachusetts’s law, your attorney must also be present. Following the meeting, the trustee and your creditors have 30 days to object to any of the exemptions you have listed, and 60 days to challenge the dischargeability (debts that cannot be discharged include but are not limited to criminal fines and debts, student loans, recent taxes, court ordered child-support) of any listed debts. Most Chapter 7 discharges occur within six months of the date you first petitioned for bankruptcy.

To determine whether or not Chapter 7 Bankruptcy is a possibility for you, please contact Bace Law Group, LLC without delay. An experienced Bankruptcy attorney can review your case and decide the best way for you to proceed.

Chapter 13

Chapter 13 Bankruptcy is the income-based form of debt resolution. Creditors are paid based on what a debtor can afford to pay, once reasonable living expenses have been taken into account. Not all creditors are paid, nor are all debts paid in full. Under Chapter 13, a debtor can maintain a reasonable standard of living.

Chapter 13 Bankruptcy is not right for everyone. It is most appropriate for those who have fallen behind on payments for secured loans, such as mortgages or car loans. It is also available for those eligible for Chapter 7, but who do not want to surrender their assets or property that Chapter 7 will not allow them to protect. Under Chapter 7, it is also possible to rewrite certain secured obligations, such as those involving vacation homes, cars, trailers, boats, and other obligations.

Chapter 13 can stop repossession and foreclosure. A skilled attorney, such as those working at Bace Law Group, LLC can help to negotiate a payment plan accomplished through real estate sales or refinancing. Your attorney will be with you every step of the way, no matter how long it takes to resolve your matter.

Once Chapter 13 is filed, an automatic stay goes into effect. Collection actions such as harassing phone calls will be put to a stop immediately. You are required to submit a repayment plan along with your petition that details your assets, debts, current income, expenditures, reasonable living expenses and disposable income that you expect to have available each month. Every plan must provide enough money to pay priority debts, such as child support or recent tax debts in full. Our goal is to allow you to maintain a standard of living while repaying your debt as quickly as possible. A court appointed trustee must approve the plan you submit, and the first payment must be made within 30 days of filing your petition. You will need to continue to make these payments on time, and you will be obligated to get approval from the court for any further debts you intend to incur. You must also pay your taxes and keep current insurance on assets that are collateral for a debt (usually a home or car). The lawyers at Bace Law Group, LLC will be available to assist you, should you have any issues that come up during repayment and can help you to modify the plan, if necessary. To determine whether or not Chapter 13 Bankruptcy is a possibility for you, please contact The Bace Law Group without delay. An experienced Bankruptcy attorney can review your case and decide the best way for you to proceed.

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