What is Chapter 7 Bankruptcy?
Chapter 7 is a form of personal bankruptcy that one goes through to clear away all unsecured debt. Unsecured debt is a loan that is not backed by an underlying asset, such as a car or a house. Examples are credit card bills, medical bills, utility bills, repossessions, and foreclosures.
To qualify for a Chapter 7 bankruptcy, you need to satisfy the court’s “means test,” which calculates your income and expenses compared to the median income in Massachusetts. If you aren’t eligible for Chapter 7 bankruptcy, Chapter 13 may still be an option. The Mass Bankruptcy Attorneys can help you figure out whether you are eligible for Chapter 7 bankruptcy and if it is the best option in your specific situation.
How Does Chapter 7 Bankruptcy Work?
Chapter 7 bankruptcy is also called liquidation. This refers to selling assets to nullify as much debt as possible before the court will discharge the rest of the qualifying debt. However, bankruptcy law includes many exceptions that allow people to hold onto assets, such as a car, clothing, and tools of trade.
Our Massachusetts attorneys will help you determine which assets are eligible for exemption so that you can receive the maximum protection under bankruptcy law. When the bankruptcy process is over, the court discharges the rest of your debt, with some exceptions. These exceptions include back child support and alimony payments, student loans, recent back taxes, and personal injury claims. Our attorneys will advise you regarding how much of your debt will be discharged, to ensure utmost transparency when considering a Chapter 7 bankruptcy.
How to File For Chapter 7 Bankruptcy in Massachusetts
Before deciding to file for chapter 7, we first setup a free consultation to discuss whether chapter 7 is your best option. Once we determine that you qualify for Chapter 7, we will give you some forms to fill out and tell you what documents are needed from you. Once you fill out the forms and bring in the required documents, we can have your bankruptcy filed as soon as possible. You will also need to attend a meeting of creditors approximately 1 month after we file the bankruptcy. After that meeting, we wait another 60 to 70 days and you will receive the discharge papers in the mail.
To qualify for chapter 7, you can’t be making over a certain amount and you can’t have too many assets. At our free consultation, we will discuss whether you qualify for chapter 7. If you don’t qualify for chapter 7, there are still other options to consider, such as chapter 13, and we can discuss this possibility as well.
The Mass Bankruptcy Lawyers firm is proud to provide a reliable chapter 7 bankruptcy option for those in need. We pride ourselves on doing whatever it takes to provide positive results for our clients.
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How Can Filing for Chapter 7 Help?
What Does Chapter 7 NOT Help With?
Have a Massachusetts Bankruptcy Attorney Evaluate Your Chapter 7 Eligibility
The Mass Bankruptcy Lawyers firm offers FREE consultations to help people in need decide if bankruptcy is right for them. If you’re even considering bankruptcy in or North Andover, MA, our bankruptcy law firm can help show you the various options, such as Chapter 7 bankruptcy and Chapter 13 bankruptcy, and help you navigate the complexities and ramifications of each. Contact Us today!