Massachusetts Chapter 13 Bankruptcy Lawyer

Many people consider “bankruptcy” to be a dirty word. We often use phrases such as “morally bankrupt” to indicate someone who is completely without concern for other people. “They went bankrupt” is often the final word on beloved stores or restaurants that went out of business. However, “bankruptcy” can often be a positive thing for private individuals struggling to pay their debts.

For private American citizens, bankruptcy is a special process designed to help get them out of debt and begin their lives anew. By going through bankruptcy, you have the opportunity to discharge debts, more easily pay off loans, and reset your life to a time before you incurred heavy financial burdens. Many people opt not to explore bankruptcy options because they believe that, once someone has filed for bankruptcy, it’s “game over.” This is not true. Although the process may seem intimidating, going through bankruptcy is the kind of “fresh start” many people hope for but don’t know exists. Even for people who may be familiar with the broad strokes of bankruptcy, there remains some confusion over how the process works. Part of this confusion stems from the multiple types of bankruptcy programs available.

The two most commonly used forms of bankruptcy are Chapter 7 and Chapter 13. Each type has its own advantages and drawbacks, and each is specially designed for individuals in certain specific financial circumstances. Understanding how bankruptcy works and which form of bankruptcy is right for you is vital to escaping your current financial circumstances. That’s why if you or a loved one is facing financial difficulties and believes bankruptcy may be right for you, contact our determined Massachusetts bankruptcy attorney.

Don’t wait to start your financial recovery. Book a free consultation to get started today.

What Is Chapter 13 Bankruptcy?

Chapter 13 is commonly referred to as the “wage earners’ bankruptcy.” This is because if you file for Chapter 13 bankruptcy, you are required to create a repayment plan that outlines how you will make monthly payments to your creditors. Chapter 13 was designed for Americans who have jobs and a steady income, but who are struggling to “make a dent” in their debts, or who have run up against challenging circumstances. Because of this, Chapter 13 is not a good option for people who do not have a steady source of income.

If you are unemployed, underemployed, or have a low-income job, Chapter 7 may be the best option for you. Chapter 7 bankruptcy is also called “liquidation bankruptcy” and is intended for individuals who have no foreseeable path to paying off their debt without some form of intervention.

It’s important to consult a skilled bankruptcy lawyer to understand the differences between Chapter 7 and Chapter 13 bankruptcy. Our Massachusetts Chapter 13 bankruptcy lawyer can help determine which bankruptcy is the best solution for you, and then help you determine a path forward.

What Is a Creditor Repayment Plan?

A repayment plan is an agreed-upon plan for paying down or paying off your debt and settling your finances in a way that’s suitable to both the government and your creditors. A plan must be approved by both your creditors and the court before it can or will go into effect. Once it is approved, you will be required to comply with its terms until its completion. Failure to comply with the terms of a court-approved repayment plan can result in further financial and legal difficulties.

On average, a payment plan lasts between three and five years. During this period, you will make agreed-upon regular payments to a court-appointed trustee. A trustee is an individual with the legal designation to manage and distribute another person or company’s money and assets. In the case of a creditor repayment plan, the court-appointed trustee will collect your “lump sum payment” and then distribute the money to your various creditors per the terms of the repayment plan. Which creditors are paid first, and who receives what amount of money, will be determined as part of the bankruptcy process in court.

After completing the plan, most of your remaining debts will be discharged. This means you won’t have to pay most of your debts in full, but you will have to make consistent monthly payments. At the end of the 3-5 year period, once your repayment plan has been paid off, you will have a “clean slate” to start again. Our compassionate and dedicated attorney, Tom Benner, will review with you what happens after bankruptcy and how to “start over” with your fresh start.

Who Qualifies For Chapter 13 Bankruptcy?

Chapter 13 is not a viable option for everyone. Depending on your financial and employment circumstances, Chapter 7 may be a better option. Chapter 13 is for individuals with a certain level of debt and the means to repay it, given the assistance and opportunity. There are certain requirements that you must meet in order to qualify for Chapter 13 bankruptcy.

Some of these eligibility requirements include:

• Your debt cannot exceed a certain limit.
• You have a steady source of income.
• You have enough disposable income to make payments on a plan.
• You are a private individual and not a business.

What level of debt qualifies for Chapter 13, as well as what level of income is considered sufficient for a payment plan, can fluctuate depending on various circumstances. This is why it’s best to consult with an experienced bankruptcy attorney prior to making any final decisions or attempting to file bankruptcy yourself. Failure to adhere to strict guidelines or attempting to file for the “wrong” kind of bankruptcy can result in serious challenges to your financial future and happiness.

Is Chapter 13 Bankruptcy Right for Me?

If you meet these requirements, you may qualify for Chapter 13 bankruptcy. But that doesn’t necessarily mean that Chapter 13 is the right option for you. Find out whether it’s in your best interest to file for Chapter 13 bankruptcy by contacting our law firm today.

Are you considering filing for bankruptcy? Talk to us today to find out if Chapter 13 bankruptcy is the right solution for your financial situation. If it is, we will guide you through the entire process: from filing your petition and developing a repayment plan to addressing how it may affect your credit report and long-term financial stability. 

Contact Our Experienced Chapter 13 Bankruptcy Lawyer Today

If filing Chapter 13 bankruptcy isn’t the best fit, we will help you explore other options that protect your valuable assets and put you on the path toward financial freedom. Our goal is to help you achieve the fresh financial start you deserve.

Take the first step toward securing your financial future by contacting Benner Law about your bankruptcy case today. Don’t begin the bankruptcy process without reviewing your options with us first. Schedule a free initial consultation at 774-404-8321 to regain control of your finances today.