Boston Chapter 7 Bankruptcy Lawyer
If you are struggling with debt and considering filing for Chapter 7 Bankruptcy, contact Lowney Law, LLC, for a free consultation with a Boston Chapter 7 Bankruptcy Lawyer. The attorneys at Lowney Law, LLC, will help you decide whether filing for Chapter 7 Bankruptcy is the right option for you.
What is Chapter 7 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 all 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.
What happens to my debt in a Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy allows the debtor to eliminate a majority of his debts through “discharge”. Some examples of dischargeable debt include credit cards, personal loans, medical bills, judgments, and business debts. However, filing for Chapter 7 Bankruptcy in some cases will not eliminate all of a person’s debt. Examples of debts that are non-dischargeable are most taxes, most student loans, and child support/alimony payments. Despite having non-dischargeable debts, the discharge of the other debts will make management of the non-dischargeable debt much easier.
Am I eligible?
Debtors must qualify to file a Chapter 7 Bankruptcy. Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) a person must pass the “Means Test” in order to be eligible to file for Chapter 7 bankruptcy. The “Means Test” looks at the debtor’s household income over the past six months. If that income is below the median, the debtor is automatically eligible to file for Chapter 7 bankruptcy. If it is over the median, the debtor’s expenses are then calculated in. If the debtor still 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.
What happens once I file?
As soon as the debtor files for Chapter 7 bankruptcy, an “automatic stay” goes into effect. This means that all your creditors must stop trying to collect on the debts and cannot contact you. Upon filing, the Court will assign a trustee to oversee the case. The trustee will set up a “first meeting of the creditors”, also known as a “341 meeting”, usually within a month or so of filing. The debtor must attend the meeting. The creditors are invited to attend, but do not have to. In fact many do not. At the meeting the trustee and creditors can ask the debtor questions about the debt. The trustee and creditors then have 30 days to object to any exemptions claimed by the debtor and 60 days to challenge a debt’s dischargeability. On average it takes about 6 months from the date of filing to receive a Chapter 7 discharge.
If you are considering filing for Chapter 7 Bankruptcy, Lowney Law, LLC, has a Boston Chapter 7 Bankruptcy Lawyer available to help you. If you are struggling with debt, call Lowney Law, LLC, now at 617-364-8000.
