Some people still falsely believe that the new Bankruptcy Law which went into effect on October 17, 2005 ended a person's ability to obtain relief from their debts. Reports of the end of bankruptcy as a debt relief option have been overstated. Under the new law there is no doubt that there will be more steps you will need to take to obtain a discharge but none are significantly difficult. For anyone who has an income below Massachusetts Median Income Standards (see below) it is still a relatively uncomplicated tool for debt relief. The assistance of an attorney is needed now more than ever.
See, our new web page on Saving The Family Home.
Bankruptcy still remains a right
provided to all Americans who have incurred debts that have become, for one
reason or another, greater than their ability to pay. There are two types of
bankruptcies individuals can file. In Chapter 7 individuals receive forgiveness
of their debts outright. In Chapter 13 individuals prepare a "Plan" whereby they
arrange to make set payments to their creditors over time (customarily 3 to 5
years). No one type of bankruptcy is right for everyone. Generally people with
little in the way of assets will prefer to file for Chapter 7 and people with
larger asset holding, and higher levels of income, Chapter 13.
Most Chapter 7 and Chapter 13 personal bankruptcies still will involve no
loss of property.
Click here to learn about Bankruptcy Property Exemptions
While it is impossible to elaborate on all of the implications of the new law in this posting the first question anyone contemplating a bankruptcy needs to ask is "Is my family’s annual income below Massachusetts Median Income Standards?" The 2008 standards are:
| One Person Family - $52,633.00 | Three Person Family - $77,960.00 |
| Two Person Family - $63,039.00 | Four Person Family - $91,892.00 |
If your income is below these levels (and it will be for approximately 86% or more of those families considering a bankruptcy filing) then you will be able to proceed with relatively little complexity.
If your income is above these levels (the remaining 14% of expected filers) you may still be able to file but must proceed with a greater level of pre-filing analysis.
The Massachusetts Bankruptcy Court maintains answers to many frequently asked questions at their web site. To go there click here.
If you would like to explore how bankruptcy afford you debt relief with dignity click here.
For obtain information on how you may obtain a free copy of your credit report click here!
For information on how you can start to re-establish your credit after receiving your bankruptcy discharge click here.
Our office is a "debt relief agency" as defined at 11 U.S.C. Sec. 101(12A)
We help people file for relief under the Bankruptcy Code.
