In a Chapter 7 bankruptcy case in Massachusetts, you are afforded the opportunity to wipe out your debts and get a “Fresh Start”. Chapter 7 is often referred to as a liquidation where the trustee collects and sells your assets (except those which are not exempt). Typically the net proceeds from the sale (liquidation) are distributed to creditors. The trustee will be paid a commission for overseeing the liquidation. In Chapter 7, creditors are forced to stop collection activity against you. In most circumstances the individual is able to keep all their assets. If the filer can afford to continue making car loan and mortgage payment, the court allows them to keep those assets.
One of the main reasons for filing for Chapter 7 bankruptcy protection is because the individual has large credit card debt, unsecured bills, medical debts, and few assets. The benefit of Chapter 7 in Massachusetts is to completely eliminate all of these and other debts, giving the petitioner a fresh financial start in life.
What are some things Chapter 7 can’t do?
For starters, some debts can’t be discharged. This includes, child support, alimony, certain taxes, student loans, and of-course fraudulent debts. Further, Chapter 7 bankruptcy cannot stop a foreclosure on your home, however, other forms of bankruptcy can.
We also found this article on bankruptcy interesting:
Financial Tips & Tricks: When is bankruptcy the best option?
Are you wondering where you’re going to find the money to pay your bills this month? While the economy is in better shape now than it was a few years ago, many families are still unable to meet their basic financial obligations. Sure, most can scrape together enough to pay the most important debts. But, sometimes is seems like collection agencies are calling you non-stop and you may feel a bit of anxiety every time you pick up the phone because it may just be a debt collector.
If the above scenario sounds familiar to you, rest assured that you aren’t alone. There is a way for you to stop the collection calls and get out of financial trouble. The solution may be bankruptcy. It’s a scary thought for some people, but it might be the best way for you to get your finances under control. Here is some information to get you thinking about this often under-looked method for getting out of debt, read full post here
If you have any questions regarding Chapter 7 bankruptcy in Massachusetts, call our experienced law firm. We have five locations near Watertown, Framingham, Westborough, Worcester, Leominster – please call today 781-277-0411