Boston Bankruptcy Lawyer
If you are struggling with debt and considering filing for bankruptcy, contact Lowney Law, LLC, for a free consultation with a Boston Bankruptcy Lawyer you can trust. The attorneys at Lowney Law, LLC, will help you decide whether filing for bankruptcy is the right option for you.
How much will filing for bankruptcy cost me?
Individuals considering filing for bankruptcy are already struggling with debt and often wonder how they will pay for a bankruptcy lawyer. At Lowney Law, LLC, we work with our clients to make filing for bankruptcy affordable for them. At Lowney Law, LLC, we offer free initial consultations and accept payment plans.
Should I file for Chapter 7 or Chapter 13 bankruptcy?
Chapter 7 is liquidation bankruptcy which, in theory, means creditors are paid through the liquidation of the debtor’s assets. However, despite common perception, most people who file for Chapter 7 bankruptcy are able to keep their assets. There are certain types of property that are protected by law and thereby exempt from creditors. Massachusetts allows you to use the exemptions found in the U.S. bankruptcy code (11 U.S.C. §522 (d)) or the exemptions provided under Massachusetts law. Massachusetts has substantially increased exemption amounts as of April of 2011.
Unlike Chapter 7 bankruptcy, the Chapter 13 debtor does not liquidate his assets but instead creates a debt repayment plan. Under the plan, creditors are paid based on the amount of income available after the debtor’s living expenses are taken into account. Over the period of three to five years a percentage of the debt will be paid to creditors through the plan. In many cases the debtor pays back less than 1% of his unsecured debt, with the remainder discharged at the end of the plan.
In order to be eligible to file for Chapter 7 bankruptcy the debtor has to pass what’s called the “Means Test”. If the debtor does not meet the “Means Test” requirements, the debtor will not qualify for a Chapter 7 discharge and would instead be required to make payments on the debts through a Chapter 13 Bankruptcy plan. On the other hand, there are instances where debtors who qualify for Chapter 7 bankruptcy may opt to file a Chapter 13 when they have assets that would be exposed in a Chapter 7 and wish to keep said assets. Chapter 13 is often a good option for those who have fallen behind on secured loans such as mortgage or car payments. The attorneys at Lowney Law, LLC, can assist you in making the tactical decision of which chapter to file.
For more information about these bankruptcy options, click on its link below:
Lowney Law is a debt relief agency that helps clients file for bankruptcy. If you are considering filing for bankruptcy, Lowney Law, LLC has Boston Bankruptcy Lawyers available to help you. Save your property and your paycheck by calling Lowney Law, LLC now at 617-364-8000.
