Massachusetts Bankruptcy Lawyer

While a Chapter 7 bankruptcy is a “no asset” case, people having an interest in real estate other than their personal residence (time shares and undeveloped lots) need not necessarily worry about losing such property. Massachusetts law allows an exemption for the value of the equity held in the debtor’s personal residence up to $500,000. People not owning their residence benefit from more liberal federal law exemptions which actually allow up to $20,200.00 worth of real estate to be exempted. An appraisal or other statement of value is usually filed along with the bankruptcy petition in order to verify the value of the real estate. Consult with a qualified bankruptcy practitioner in your jurisdiction before attempting to exempt real property in a bankruptcy filing, as the state laws on exempting such properties vary considerably from one state to another.

A bankruptcy filing can not only allow you to keep your car, but can also allow you to continue paying off a car loan so as to avoid repossession. Since it is essential to have good transportation for the commute to work, this is an important consideration for many debtors. The value of your car should still qualify as within an exempt amount. The debtor indicates on his petition his intent to “reaffirm” the car loan – keep the car and continue paying off the loan on its original terms. The lender usually sends to the attorney filing bankruptcy a reaffirmation agreement. This agreement provides that the debtor has enough difference between net monthly income less expenses to continue making regular payments as agreed. It is essential that the information presented on income and expenses schedules therefore be accurate. The reaffirmation agreement then gets filed with the court by the lender. A bankruptcy filer who is only a co-signer and not the principal on a car loan cannot indicate an intent to reaffirm a loan for property not belonging to him. But the car owner can inform the lender of the intent to reaffirm, which the bankruptcy filer will then do. Make sure a qualified bankruptcy attorney in your jurisdiction knows about and discusses with you your rights to reaffirm a car loan debt, even if not for your own car. These agreements are usually sent to the filing attorney’s office and signed by the filing attorney as well as his clients.

Uninsured medical expenses are often a good reason to seek relief by a bankruptcy discharge of debt, but people saying to themselves “I’m in good health, I don’t have uninsured medical expenses” may want to consider their potential liability as guarantors. Often, if you are the guarantor for expenses incurred by your child or parent, you are equally responsible for this debt. And minor children cannot be responsible for their medical expenses, so the burden then falls to the designated parent or legal guardian. Don’t forget to list your liability as guarantor for anyone else’s medical expenses, in order for the provider to get notice and for you to receive a full discharge relieving you of responsibility for the debt. Contact a qualified bankruptcy attorney in your jurisdiction if you have questions about the extent of your liability for medical expenses.

A bankruptcy filing need not be a once-in-a-lifetime experience. There is no limit on the number of times a person may file for bankruptcy, but there are factors to be aware of in any subsequent filing. Prior to this decade, a bankruptcy filing would be on a person’s credit history for seven years, but may still appear after that until requested by the individual to be removed. The report would indicate the date of filing and date of discharge, if received in the case. Although the reporting time has now been extended to ten years, the principle remains the same. The report of filing may be removed upon request after that time. Although there is no prohibition on filing before this lapse of time, the bankruptcy petition itself requires reporting of prior bankruptcies within the last eight years and in fact allows for at least two listings of this type. A previous bankruptcy filer need not go to the same attorney for a second filing, and in fact the new attorney need not even see the prior file. Most information regarding the client’s financial situation may be obtained from the client’s credit report. However, as the person may have moved, etc., the most important step is to contact a qualified bankruptcy attorney in the jurisdiction they are currently in.

While bankruptcy is a viable option for consideration by many, some might want to hesitate before taking this path based on their circumstances regardless of the severity of their financial situation. In particular, non-citizens seeking citizenship would not want a bankruptcy filing to result in a denial of their application for naturalization. I have aided an acquaintance in such a situation by negotiating repayment terms with creditors short of filing for bankruptcy. Thankfully, this individual also had the fortune of beginning new employment after a period of being out of work and unable to even make rent payments. While not everyone may have such opportunities, careful consideration of bankruptcy alternatives, already required by law for bankruptcy filers, might be a good way to leave the path to citizenship open. It is extremely important for people seeking citizenship to consult first with an experienced U.S. immigration attorney about the consequences of a bankruptcy filing on their application for naturalization. The immigration attorney might themselves direct their client to a bankruptcy attorney in the client’s jurisdiction for further information about bankruptcy.

The state of the economy has many concerned about their jobs and futures, but one group in particular has more to lose from bad credit than others. That would be civil servants. Civil servants, including local and state law enforcement and those working on government contracts, are usually subject to not only an exhaustive criminal background check but also a credit check as a determination of their potential security risk. Often a training completion requirement might be a swift adjustment of credit status by either a repayment plan or a bankruptcy filing. Filing for bankruptcy might allow a government worker to continue in their position or commence new employment. Failing to do so might jeopardize their entire career. The first step for a civil servant contemplating bankruptcy would be to learn about the effect of a bankruptcy filing on their credit by speaking to a qualified practitioner in their jurisdiction and perhaps also learn of their workplace rights from an attorney practicing in the area of civil service employment law.

While the administration is taking steps to control increases in credit card interest rates, another credit problem will be far harder to fix – identity theft. I was myself a recent victim of credit card fraud. Unauthorized use by a stranger can be easily undone by notifying the card provider. However, other types of unauthorized use and reporting are harder to eliminate. Frequently, clients have outstanding accounts listed on their credit reports that may have actually been taken out by the client’s relatives, often using the client’s identity and personal information. Another common occurrence is having an account under your name for someone of a same or similar name (Senior and Junior, etc.).

These instances may be reported to the credit reporting agencies for correction, but the process of taking the account off the records may be so tedious that someone who is going to file for a bankruptcy discharge might just want to include such accounts on their petition. Accounts on which you are only an authorized user may also be included on your report and thereby damage your credit score. By making your list of debts as comprehensive as possible, you prevent your future liability even for accounts wrongly reported in your name. The above-mentioned scenarios are only for minor debts incurred by a known relative or relation. Do first consult a bankruptcy lawyer in your jurisdiction, as your credit reporting rights under your state’s law may also be taken into consideration.

If you are considering bankruptcy as an option, one of the first questions on your mind will probably be how to pay your attorney fees. Whether the retainer is flat rate or hourly billing, your attorney should disclose to you at the start the total costs involved in your matter, including required courses, local filing fees for homestead declarations or other property protections, appraisals and other necessary valuations, credit reports and the court filing fee. The Bankruptcy court filing fee in Massachusetts is $299.00. The total attorney’s fees collected prior to the time of filing will be disclosed on your bankruptcy petition both under the Statement of Financial Affairs as a payment related to bankruptcy and the Compensation Statement of Attorney for Debtors. You can usually work out your form of payment plan with your attorney, but most attorneys would expect the entire amount of their retainer to be paid prior to filing or risk being added as an unsecured creditor of their client. Because the ethical rules vary from state to state, first consult with a qualified attorney in your jurisdiction to determine the most appropriate way for you to pay your attorney’s fee.