Massachusetts Personal Bankruptcy FAQ's
We have compiled a few commonly asked questions from clients and provided a response that should help you have a better understanding of bankruptcy. If you have any further questions, please feel free to contact us.
Massachusetts Personal Bankruptcy Questions:
Please note that nothing in this section should be considered legal advice nor does it create an attorney client relationship. Every situation is different and only an experienced, licensed bankruptcy attorney can advise you on your particular situation. Contact us today to speak with a Massachusetts attorney today.
ANSWERS
Q: What types of debt can I get rid of?
A: Bankruptcy can help you get rid of certain unsecured debt such as credit cards. Bankruptcy can also help you escape certain types of contractual obligations. To find out if our attorneys can help you get out from under your debts, you should contact one of our attorneys. [top]
Q: Why should I hire an attorney to file Bankruptcy?
A: There are a lot of services and do-it-yourself-kits on the internet that claim that they can prepare your bankruptcy petition for a low fee. However, only a licensed attorney is allowed to provide you with legal advice, such as which set of exemptions to claim, whether or not liens can be avoided or how to navigate through the complicated federal laws. In fact, we have had to represent clients who tried to file without an attorney and made a mistake on their bankruptcy petition, or even filed under the wrong chapter. In this type of instance, all we can do is minimize the damage. Many times, "pro se" filers will loose their home. Although you may think that the legal fee you pay an attorney is high, it is nothing compared to how much you could loose by not hiring a qualified Massachusetts lawyer.[top]
Q: What is unsecured debt?
A: Unsecured debt is any debt that you owe that is not secured by property you own: namely collateral. For example, a mortgage is a secured debt since your home is used as collateral in the event you default. Another example is an auto loan which a lien is placed on your title. Unsecured debt includes credit cards, store cards, personal loans, and unpaid doctor bills. [top]
Q: I filed bankruptcy before, can I file again?
A: Yes, there is no limit to the number times you can file. However, there are restrictions:
Chapter 7 Bankruptcy: you cannot file a Chapter 7 unless it has been more than 8 years since you received a discharge from a previous Chapter 7 or 13 bankruptcy.
Chapter 13 Bankruptcy: You cannot file a Chapter 13, unless it has been be at least 4 years since you received a discharge in a prior Chapter 7 bankruptcy; or 2 years since you received a discharge from a prior Chapter 13.[top]
Q: Can I discharge my student loans and alimony?
A: No, except in very rare situations, certain debts such as support payments, government funded student loans, and certain government taxes are not dischargeable.[top]
Q: Why would I file Chapter 13 instead of Chapter 7?
A: Generally, if your income falls above the median income for your family size in Massachusetts, then you must file Chapter 13. However, there are a lot of factors that can influence what chapter you should file; such as if you are behind on your mortgage payments. For more information, you should contact a licensed attorney. [top]
Q: I still owe money on my car, what will happen with that debt?
A: You will have several options in bankruptcy regarding an automobile note. You can continue to make payments on the car loan and keep the car or you can surrender the automobile and have any remaining debt discharged.[top]
Q: How will bankruptcy effect my credit?
A: A bankruptcy will stay on your credit report for a maximum of 10 years. However, that does not mean that you will have bad credit for that whole period. Credit can be reestablished by staying current on your debts that are not discharged during the bankruptcy; such as you car payments, house payment or student loan payments. Moreover, in most cases, once you reestablish credit, chances are you can qualify for a mortgage or car note in as little as two years.[top]
Q: Am I better off in credit counseling or debt consolidation?
A: Almost never. Most consolidation companies will collect your money for a long period of time and never repay your debt. Your creditor will still attempt to collect from you and after a period of time, the consolidation company will try to settle the debt for less than what is owed. Sometimes your credit card company will say no. In the meantime your credit is getting worse and worse. Most people who try consolidation end up filing bankruptcy in the long run; only after they have paid thousands of dollars to a consolidation company. However, if you have attempted consolidation and none of your debt has been paid, you should contact us and we may be able to recover the money you paid.[top]
Q: I am behind on my mortgage payments and the bank is foreclosing, can bankruptcy help?
A: In some circumstances, bankruptcy can help. For example, by filing a Chapter 13, you can include your past due amounts in your repayment plan and continue to pay your normal monthly payments. However, every circumstance is different so it is important that you contact us immediately.[top]
Q: What is the means test?
A: Basically, the means test is an analysis to determine if a debtor has the means to repay a portion of his/her debt. This test is used to determine if the debtor should file a Chapter 7 or Chapter 13 Bankruptcy. Basically, the Debtor's income is compared to the median household income for families of the same size throughout Massachusetts. [top]
Q: Do I have to take a debt counseling course, and why?
A: In order to qualify for bankruptcy relief, a debtor must receive a briefing on credit counseling and budget analysis from an approved nonprofit budget and credit counseling agency. To receive a discharge in Chapter 7 or Chapter 13, an individual debtor must also attend an approved personal financial management instructional course. The company we use for these courses allows you to take them over the telephone or online. [top]
Q: Can I discharge my income taxes?
A: Sometimes. The rules that govern discharging income taxes are extremely complicated for more information, visti our Bankruptcy Tax Page. However, if you have tax issues, you should not try to deal with them yourself, contact one of our Massachusetts lawyers to discuss your options.[top]
Disclaimer
Nothing in this web page is to be construed as legal advice. This web page is provided for information purposes only. Legal advice can only be obtained by contacting a licensed attorney. For more information and a free consultation, please feel free to contact an attorney. [top]
Free Consultation With A
Massachusetts Bankruptcy Lawyer
(617) 497-7141
At Grantham | Cencarik, P.C., we offer a FREE one hour consultation with all potential new clients. This gives you an opportunity to meet, or speak with the attorney that will be working with you on your matter. Moreover, we offer simple flat rates and allow you to pay your legal fees in monthly installments.
The Boston Massachusetts lawyers at Grantham | Cencarik, PC operate as a debt relief agency located in Cambridge and serving clients in Boston and eastern Massachusetts, including Cambridge, Braintree, Somerville, Revere, Brockton, Chelsea, Peabody, Quincy, Saugus, Winthrop, and the following counties: Essex, Middlesex, Norfolk, Plymouth, and Suffolk.