The lawyers at Grantham | Cencarik, PC have years of experiences assisting Massachusetts residents with their debt problems. We represent clients in Boston and Cambridge, and throughout Eastern Massachusetts.

The Bankruptcy Process:
What to Expect When you File

Once you retain us to represent you, you will have to provide us with copies of paychecks, bank statements and tax returns. Moreover, you will have to fill out a detailed personal financial questionnaire. Using this information, and the information from your credit report, your attorney will prepare your petition.

You will have to take a credit-counseling course either online or over the telephone. After you complete this course, your lawyer will meet with you to review and have you sign your bankruptcy petition. After you sign your petition, your lawyer will file it with the Bankruptcy Court in Boston.

A few weeks after your lawyer files your petition you will have to attend what is known as a meeting of creditors, or "341 meeting". At this meeting, you will answer a few questions from a bankruptcy trustee. (The trustee is an attorney who is assigned by the court to oversee your case). In most cases, this is the only hearing you will have to attend; and your lawyer will accompany you. The meeting of creditors is brief and the trustee will ask you a few questions about your finances and your petition. After the hearing, you will be required to complete a debt management course.

In a typical chapter 7, you will receive a discharge of your debts about four months after the date that your attorney files your petition. In a chapter 13, your discharge will come at the end of your repayment period; typically 3-5 years.

To find out if Personal Bankruptcy is right for you, contact one of our Boston Area Lawyers by filling out our Free Consultation Request Form, or calling (617) 497-7141.

Chapter 7 or Chapter 13 Bankruptcy?

Under the current laws, there are two criteria that will determine if a debtor should file under a Chapter 7 or Chapter 13 Bankruptcy:

1. Income Level

The first step in figuring out whether you can file for Chapter 7 is to measure your "current monthly income" against the median income for a family of your size in your state. Your "current monthly income" is your average income over the last six months before you file. If your income is less than or equal to the median, you can file for Chapter 7. Click here to see the allowable income levels for Massachusetts.

If your income is more than the median, then you may still file a chapter 7 Bankruptcy; however, you must pass "the means test" in order to file for Chapter 7 as explained in the next section.

2. Disposable Income and the Means Test

If your income is over the Massachusetts state median, then a complicated mathematical calculation is used to determine what type of bankruptcy you must file. Your expenses are compared to allowable expenses as established by the U.S. Census Bureau and the IRS. After deducting your expenses from your income; if you have sufficient disposable income to repay a portion of your debt over five years, then your must file a Chapter 13 Bankruptcy.

To find out which chapter is right for you, contact a Massachusetts Lawyer by filling out our Free Consultation Request Form, or calling (617) 497-7141.

Chapter 7 Bankruptcy

Chapter 7 is the most common form of bankruptcy protection. Chapter 7 Bankruptcy is a liquidation whereby a debtor's assets that are not exempt under Massachusetts law can be sold to repay creditors.

In a Chapter 7 Bankruptcy, your "general" unsecured debts can be "discharged" without any type of repayment. If you file a Chapter 7 you are entitled to keep your personal property so long as that property does not exceed a certain value. Property that your get to keep is known a "exempt." Examples of exempt property are: clothing, certain retirement accounts such as a 401k, and home furnishings. Property that is not exempt may be sold to satisfy creditors. Examples of non-exempt property include stocks, expensive jewelry, cash and luxury automobiles.

Exemptions

Debtors are entitled to retain certain types of property up to a certain value; these are known as "exemptions". There are many exemptions available to Massachusetts Residents. Typical exemptions include: clothing, equity in their home up to $500,000, and qualified retirement accounts. Is it important to work with a qualified attorney in order to ensure that you do not lose any property you are entitled to; contact us today to schedule your free consultation.

Non-Dischargeable Debts

Not all debts can be discharged. Secured debts cannot be discharged; so even if you file bankruptcy you will be responsible for your mortgage and car note. Other types of non-dischargeable debts include: child support, judgments for fraud, alimony, student loans and most tax debts. This is not an exhaustive list, so contact a bankruptcy lawyer if you have any questions about dischargeable debts.

Income Taxes

Under some circumstances, income taxes may be dischargeable. In order to be dischargeable, the tax debt must not have occurred because of fraud, must have been assessed at least 240 days prior to filing, or not yet assessed, must be at least three years old, and a return must have been filed. For more information on income taxes, read this article on Personal Income Taxes in Bankruptcy by Attorney Grantham.

For more information on Personal Bankruptcy, contact us by filling out our Free Consultation Reqeust Form, or calling (617) 497-7141.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is designed for individuals with regular incomes who have the ability to repay a portion of their debts. In most circumstances, Chapter 13 is generally the only form of bankruptcy protection available to you if your income is above the Massachusetts median income.

In a Chapter 13 your attorney will help you create a debt repayment plan (known as a Chapter 13 Plan) that will allow you to pay back a certain percentage of your debts over the course of three to five years.

The amount repaid through the Chapter 13 Plan is determined by subtracting your household living expenses from your household income. Any income that is left over after basic expenses such as rent and mortgage, electric utilities, car payments, and insurance will be paid to the bankruptcy trustee. The trustee, in turn, will pay your creditors according to your Chapter 13 repayment plan.

Foreclosure & The Automatic Stay

If you are facing foreclosure, your best option is to file a Chapter 13 bankruptcy. A Chapter 13 will stop any foreclosure proceedings against you.  As long as the petition is filed prior to the completion of the foreclosure sale, you may prevent the bank from auctioning the property.  However, in order to keep the property, you must have the ability to repay your past due balance (arrears) over the course of five years, while also making your usual monthly mortgage payments.

To find out more about Chapter 13, contact a Lawyer at Grantham Cencarik, PC by filling out our Free Consultation Request Form, or calling (617) 497-7141.

Free Consultation With A
Massachusetts Bankruptcy Lawyer
(617) 497-7141

At Grantham | Cencarik, P.C., we offer a FREE one hour consultation with our new potential 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 Braintree, Somerville, Revere, Brockton, Chelsea, Peabody, Quincy, Saugus, Winthrop, and the following counties: Essex, Middlesex, Norfolk, Plymouth, and Suffolk.