Yes, You Can File Bankruptcy in Massachusetts
Credit card companies and other creditors are fond of telling debtors that they are not eligible to file bankruptcy under the laws. Like many things you hear from bill collectors, it simply is not true. Everyone in Massachusetts is eligible to file bankruptcy. It's just a matter of which chapter of bankruptcy you can file.
There are two forms of bankruptcy protection: Chapter 7 bankruptcy and Chapter 13 bankruptcy. At UHLLAW, PC, we offer a free initial attorney consultation to discuss your financial situation and determine which form of bankruptcy is best for you. We have offices in Worcester, Fitchburg, Boston, Orange and New Bedford.
First, a Few Questions
While you may be eligible to file either Chapter 7 or Chapter 13 bankruptcy, one form of debt relief may be better given your financial situation. Attorney Christopher Uhl will begin your bankruptcy consultation by asking you a few simple questions about your debts and your assets:
- What is your gross income? If you earn less than the median income in Massachusetts (approximately $54,000 for a single person), you can file Chapter 7 or Chapter 13 bankruptcy. If you earn the median income or higher, Chapter 13 bankruptcy may be your only option. (There is a second means test that may qualify you for Chapter 7 bankruptcy even if you earn more than the median income.)
- Do you own a home — and if so, is the mortgage up to date? If you are caught up on your mortgage payments, you can file Chapter 7 without fear of losing your home. You can preserve up to $500,000 in equity in a homestead when you file bankruptcy in Massachusetts. However, if you are behind in your mortgage payments and want to save your home, you may need to file Chapter 13 bankruptcy.
- Do you have unsecured debt in excess of $1 million as a business or individual? If so, you are looking at a Chapter 11 bankruptcy. Chapter 11 bankruptcy filings are rare: There were only about five in all of Massachusetts in 2008.
Learn more about Chapter 7 bankruptcy.
Learn more about Chapter 13 bankruptcy.
Beware of debt counseling services: Many consumers spend thousands on dollars on debt counseling or negotiation services only to find themselves back where they started: in debt. Only bankruptcy can offer you a fresh financial start by eliminating debt with the full protection of the federal court against creditor actions.
Free Bankruptcy Lawyer Consultation
Come with questions and leave with answers about how bankruptcy can eliminate your debt and give you a fresh financial start. Call 888-219-3993 or fill out our contact form to schedule a free initial consultation with a bankruptcy lawyer.
