Filing Bankruptcy In Ma

Can Bankruptcy Help Me Discharge My Tax Debts

In some cases you may be able to discharge tax debts in a chapter 7 case. The tax return must have been last due more than 3 years before the bankruptcy case is filed, and the return must have been actually filed more than 2 years before the case is filed. Additionally, you must not be found to have willfully tried to evade the tax, or filed a fraudulent return.Even in situations where you cant discharge your tax debts in Chapter 7, a bankruptcy can still be helpful in dealing with them. In a Chapter 13 case, you can pay non-dischargeable tax debts through a payment plan over 3-5 years. There are several benefits to doing this compared to working out a payment plan directly with the taxing authority. First, you have the protections granted by the automatic stay provisions of the Bankruptcy Code. This means that the IRS or Mass. Department of Revenue cant levy wages, intercept tax refunds or attach your bank account while you are in bankruptcy. Second, once you file bankruptcy, penalties stop accruing on the debt, making it much easier to pay it off in less time more less money. Third, in Chapter 13, you make only one payment to the trustee each month, and the money is then distributed to creditors according to the terms of the plan. Many people who owe the IRS, owe MDOR as well as other creditors, making individual payment plans very burdensome. Chapter 13 provides an easy mechanism to resolve many debts with one easy payment plan.

Common Reasons For Filing Bankruptcy In Massachusetts

Individuals in Massachusetts may declare bankruptcy for a number of reasons, but there are a few causes in the Bay State that are especially common. These reasons may depend on shifting circumstances, and different economic pressures may trigger more bankruptcies in specificperiods. Although times change and the economy may face a variety of hurdles over the years, some reasons for bankruptcy always remain the same.

If you are considering bankruptcy in Massachusetts, it is best to consult with an experienced bankruptcy lawyer as soon as possible. A legal professional can guide you through virtually every aspect of your bankruptcy and help you minimize losses wherever possible. With the helpof a qualified bankruptcy attorney in Massachusetts, your bankruptcy may go a lot smoother than you initially expected.

Reason Number One: Medical Expenses

According to various studies, more than 60% of all Americans who choose bankruptcy do so because of medical reasons. Healthcare reform has had essentially no impact on the number of Americans who file for bankruptcy due to medical costs in Massachusetts. According to a number of additional experts, most Americans are not fully aware of the limitations of their health insurance policies. This often leads to bankruptcy.

Reason Number Two: Career Issues

Reason Number Three: Credit Card Debt

Reason Number Four: Divorce

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Why File For Bankruptcy

Most people file for bankruptcy because they ultimately have no other choicethey have a mountain of credit card debt, they have missed too many mortgage payments, or they are facing foreclosure. The only way to stop a foreclosure from moving forward and the only way to eliminate credit card debt is by filing for bankruptcy. While many are concerned about the negative impact of bankruptcy on their credit score, most people who need to file for bankruptcy already have poor credit, and bankruptcy will actually give them a fresh start for rebuilding good credit.

There are also positive consequences associated with filing for bankruptcy. Your discharge in bankruptcy, which I will explain in detail in Chapter 5, is the beginning of your journey to financial rebirth.

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Will Filing Bankruptcy Affect My Job

No. The Bankruptcy Code is a federal law intended to give people who have had financial difficulties a fresh start in life. The government and society generally, have a strong interest in seeing people who need relief from their debts take advantage of this system. For that reason the Bankruptcy Code prohibits private employers from terminating or discriminating against their employees solely because they a filed for bankruptcy. Additionally, governmental units may not discriminate in hiring or promoting employees, or granting of any licenses, permits or charters based on the fact that an individual has filed for bankruptcy protection.

Dealing With Your Car

Your car plays two important roles in your case. First, itâs an asset in your Chapter 7 bankruptcy estate. Though most of the time itâs an asset with no value if you have a large loan balance and no equity.

Second, if you have a car loan, your car is collateral for one of your creditors. Your car loan has to be listed as a secured debt on your Schedule D, and you have to explain what you want to do with it in your Statement of Intentions. Everyone who has a car loan when filing Chapter 7 in Massachusetts has the same options to deal with their car and the loan it secures. There are also options for those who are leasing their car.

If you own your car free and clear, your options depend on what your car is worth. Massachusetts has a $7,500 vehicle exemption. This means that if you have a vehicle worth $7,500 or less you may keep it.

If your car is in good shape and the loan and monthly payment work for you, you can keep everything essentially the same by entering into a reaffirmation agreement. To do this, you must be current on your loan payments. If you arenât current on the loan or donât want to keep making payments, you can surrender your car to the lender and have the loan debt discharged as part of your case.

Even if you can keep your car, it may be in your best interest to get rid of it at this time and purchase another one after bankruptcy.

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Will I Lose My Belongings If I File Chapter 7 Bankruptcy Understand Massachusetts Bankruptcy Exemptions

Bankruptcy exemptions protect the equity in your property in a bankruptcy case. Likewise, property not protected by bankruptcy exemptions may be sold in a Chapter 7 liquidation case. Note also that for Chapter 13 cases, non-exempt equity in the property can increase the bankruptcy plan payment.

The most important asset most people like to protect is their home. See the Massachusetts bankruptcy homestead exemption below.

The homestead exemption is often broken down by age and whether you are married.

• Single and under 65: $500,000
• Single is 65 or older: $500,000

Massachusetts specific homestead bankruptcy exemption text: Mass. Gen. L. Ch. 188 §§ 1, 1A. $500,000 and $500,000 for each age 62+ or disabled person. Record a Declaration of Homestead with the county Registry of Deeds.

It is important to review additional Massachusetts bankruptcy exemptions and choose those exemptions that best protect your assets.

The federal bankruptcy exemptions are detailed in 11 U.S. Code §522. The National Consumer Law Center maintains a list of federal bankruptcy exemptions on its website. Massachusetts is a state that allows you to use federal bankruptcy exemptions

Always check that you use the most current information available when analyzing bankruptcy exemptions.

Massachusetts Bankruptcy Laws And Your Property

As you contemplate filing a bankruptcy in Massachusetts, naturally your property will be a vital concern. Both Chapter 7 and Chapter 13 provide a means for protecting your personal property and real estate from the claims of your creditors. These protections are known as exemptions. Bankruptcy exemptions are a relatively complicated matter, and we should discuss how Massachusetts bankruptcy laws apply to your property.

How to File and Whats Next

To learn more about declaring bankruptcy in Massachusetts, Our experience enables us to answer your questions and help you determine if bankruptcy is right for you or whether you should explore bankruptcy alternatives. Prior to filing a bankruptcy, consumers are required to complete a brief course known as a consumer credit counseling. For more information regarding these on-line or telephone sessions, do not hesitate to contact us.

Whether Chapter 7 or Chapter 13 bankruptcy filings best serve your needs, or even if you are considering debt negotiation or some other alternative to bankruptcy, as your bankruptcy attorney Vladimir von Timroth will serve as your private legal consultant. It may seem impossible right now, but there is a light at the end of the tunnel.

The Law Office of Vladimir von Timroth is here to assist you in making the best decisions for your particular situation and reaching that destination.

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Put Years Of Experience In Your Corner

If you are a homeowner that is considering filing forbankruptcy, you may be concerned about the possibility of losing your home. For most people keeping your home in bankruptcy is simple. Make your mortgage payments and keep your home. This is just the way it was before you filed. The exception, if you own a home with more than $500,000 in equity. This means if you have a home with no mortgage and it is worth $500,000 or less, the bankruptcy laws fully protect your home. Elderly and disabled Massachusetts Debtors may even be able to keep a $1,000,000 dollar home with no mortgage and still be fully protected.

If your home has no equity, you will be allowed to keep your house as long as you continue making your monthly mortgage payments. In situations where there is equity in the house, the homeowner may still find that their property is exempt from liquidation. A lawyer should be contacted and asked to review your finances to determine your qualifications for Chapter 7. Once it has been established that you can file for Chapter 7 bankruptcy, you can find out if your home and other assets will be exempt from liquidation.

How To Keep Your Property And File For Bankruptcy In Ma

Chapter 7 bankruptcy bankruptcy puts all of your property into a bankruptcy estate. Any items in the estate that arent exempt are liquidated to make repayment to creditors however, most people who file keep all their property. It is important to keep in mind that, even in the unlikely event you have an item of property sold by the trustee, you are still entitled to the amount of the exemption in that item. For example, MA law allows a $7,500 exemption for a vehicle used for personal transportation. Lets say you own a car worth $10,000. Even if the trustee were to sell the car, you would get a check for the $7,500. The sale does not defeat the exemption.

Once the process is complete and the trustee has looked over all your assets, you are discharged of any remaining debts. This means you owe nothing, and you have no corresponding tax liability. In the interim, creditors are no longer allowed to call thanks to the protections of the automatic stay, a federal court order that penalizes creditors who dont respect the bankruptcy process.

There are some debts that are not included in a Chapter 7 bankruptcy. These types of debts cannot be discharged. This means that you will remain responsible for them, even after filing for bankruptcy.

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Chapter 7 Vs Chapter 13 In Massachusetts

Chapter 7 bankruptcy: In Chapter 7, you are at risk of your nonexempt property being sold and used to pay off debts. Its generally meant for those who cannot afford to pay little to any of your debt. Its often less expensive than a Chapter 13 bankruptcy, and you can receive a discharge within 120 days. It stays on your credit report for 10 years.

Chapter 13: In Chapter 13, you reorganize your debts similar to a debt settlement program. Your property above the exemption is often not sold as you may be able to protect your assets. Its often more expensive than a Chapter 7 bankruptcy, and you generally will receive a discharge in 3 or 5 years. It stays on your credit report for 7 years.

When your debt is discharged, this means that you are not required to pay that debt back.

Talk To Us About Your Options:

We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.

We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.

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File Your Forms With The Massachusetts Bankruptcy Court

Even though Massachusetts is a single federal district, it has three divisions. Thereâs a courthouse located in each division. The Massachusetts courthouse where youâll file your Chapter 7 bankruptcy will depend on the city or town you live in. You can look up the appropriate location for filing your case either by town or zip code.

While you can file all of your documents by mailing them to the courthouse, if itâs not a hardship and the courthouse isnât closed to the public due to the coronavirus, itâs a good idea to do it in person. That way the clerk’s office can let you know right away if there are any apparent issues or missing documents. Make sure you bring the original youâre filing with the court and a copy, so the clerk can stamp it for you. Finally, remember that this is a federal building, so youâll have to pass through security on your way inside.

Right now, only attorneys are allowed to file online in all districts.

Massachusetts Chapter 7 Bankruptcy Court Locations

Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in Massachusetts if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.

In addition to the above, review Massachusetts local bankruptcy rules before filing a bankruptcy case. Some local rules may differ slightly from the Federal Bankruptcy Rules.

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Collect Your Massachusetts Bankruptcy Documents

The first step in the process of filing bankruptcy in Massachusetts is to collect your bankruptcy documents and organize them in a single location. These documents are used in preparing the bankruptcy forms that get submitted to the bankruptcy court.

Start by collecting all the various collection letters you have received in the last three months and getting a copy of your credit report. Together, these documents will allow you to create a complete list of your debts with the most current address available for each one of your creditors.

Since you need to provide the bankruptcy court with an overview of your monthly expenses, pull a few bank statements to help make sure you didnât miss anything. The bank statements may be needed later on in your Massachusetts bankruptcy case, so donât close any bank accounts without first getting copies of at least the last 6 months of bank statements, just in case.

Youâll also need your last two federal income tax returns and the last six months of paycheck stubs. There may be other documents thatâll be helpful, so if you come across any real estate appraisals or other valuations, deeds, life insurance policy statements etc. keep them nearby.

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What Does Bankruptcy Include

Once you file for bankruptcy in MA, the courts put in place an order called an Automatic Stay. This order will stop debt collection calls, wage garnishments, and additional claims. Keep in mind that payments regarding child support and criminal cases will still need to be made during this time.

In any event, Bankruptcy will be able to include:

• medical expenses

Again, unless you are filing a complex Chapter 13 case, you will lose all assets associated with a Chapter 7 Bankruptcy protection. You will, however, be able to prevent any and all collections from occurring as long as they were incurred before the date of filing and discharge.

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Advantages Of Chapter 13 Bankruptcy

Most people thinking about bankruptcy will choose Chapter 7 if they qualify for it, because Chapter 7 is usually over in just a few months and it totally wipes out most debts. But Chapter 13 may be right for people who are overwhelmed by secured debt because it offers ways to:

• restructure mortgage payments to save a home from foreclosure
• reduce the amount of some secured loans to match the value of the property , and
• reduce certain tax debts that canât otherwise be discharged in bankruptcy.

Filing Bankruptcy Alone Vs Filing With An Attorney

Current laws do not require individuals to hire an attorney to declare bankruptcy relief. People are permitted to represent him or herself as a pro se debtor. You will simply contact the local bankruptcy court and obtain all forms and requirements directly through them. Filing alone is not recommended.

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