Massachusetts Chapter 7 Bankruptcy Lawyer

Legal Guidance For Clients Filing Personal Bankruptcy

We live in a time of unprecedented debt. As of 2026, the average American household owes about $105,000 in debt. This includes mortgage payments, student loans, auto loans, medical bills, and more. The situation is even more dire for Massachusettsans. That’s because the average Bay Stater owes about $130,000, or 124% more than the average American. With employment in Massachusetts on the decline, this means more and more residents are facing difficulty keeping up with their debts, loans, and other payments. In fact, in the first quarter of 2025 alone, employment saw significant declines in eight out of the nine most populous counties in the state. Combine this with a roughly 3% cost of living increase in 2025, and it’s gotten more and more difficult for many Americans to simply keep their heads above water.

In some instances, individuals are able to get out of debt by taking on extra work, selling valuables, or cutting down on luxury spending. Others may attempt to use debt consolidation services or take out personal loans in an effort to “get ahead.” Often, these loans and services only result in even greater debt. While many people are hesitant to consider it, bankruptcy is often a viable option. Although the word “bankruptcy” can carry negative connotations, for individuals struggling with mounting debt, Chapter 7 bankruptcy isn’t the end of the line. In fact, Chapter 7 bankruptcy was designed and structured to give Americans a “fresh start”.

Many people who are struggling financially decide to file for Chapter 7 bankruptcy. Deciding to file for bankruptcy can be frightening, which is why it’s important to understand exactly what the process entails before you take action. At Benner Law, our law firm understands that no one ever wants to file for bankruptcy. But we also know that filing for Chapter 7 bankruptcy may be the best step for you to take to achieve financial stability. Let our Massachusetts Chapter 7 bankruptcy lawyer review your financial situation and help you determine which option is right for you.

If you want to know whether Chapter 7 bankruptcy is right for you, contact Benner Law today.

What Is Chapter 7 Bankruptcy?

Bankruptcy is a federal program for debtors unable to pay their creditors. In the past, debtors were arrested and placed in what was referred to as Debtors’ Prison. This arrangement required the debtor or their family to raise funds to release them, or for the confined individual to “work off” their debt, often through manual labor. The United States government recognized that this was not a viable or ideal system to settle outstanding debt. This is where bankruptcy comes in. Rather than punish individuals for their debts, bankruptcy allows people a path towards starting over by settling their debts as best as possible.

While there are multiple types of bankruptcy, two of the most commonly used forms of bankruptcy are Chapter 7 and Chapter 13. Many people are familiar with Chapter 13 bankruptcy, which is similar to a payment plan. Under Chapter 13 bankruptcy, individuals are allowed the opportunity to “catch up” on late payments and keep certain property. However, Chapter 13 bankruptcy is only valid for individuals who have a certain amount of money. For many others, including individuals in relatively deep debt, Chapter 7 bankruptcy is often the best option.

How Can I Declare Chapter 7 Bankruptcy if I’m in Debt with Low Income in Massachusetts?

Chapter 7 bankruptcy is a special type of bankruptcy available to low-income individuals. It recognizes that someone with limited financial resources has found themselves in a situation they are unlikely to get themselves out of through traditional means, such as extra work or savings. Chapter 7 aims to pay off as many debts as possible while also permitting the debtor to start fresh.

Additionally, Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy” under the bankruptcy code. This is because when individuals or businesses choose to file for bankruptcy under Chapter 7, the court requires the liquidation of certain non-exempt assets to repay creditors. This is part of the “clean slate” process of Chapter 7 bankruptcy. Although it involves the liquidation of assets, once the process is complete, most individuals will have a financial “fresh start” that allows them to begin again, debt-free.

What Happens During Chapter 7 Bankruptcy?

Chapter 7 bankruptcy involves paying as many of your debts as possible through whatever means are available. When you declare Chapter 7, an immediate stay is placed on your debts. This ‘freezes’ your debts and prevents creditors from taking further collection action, such as wage garnishment. The automatic stay gives you a “breather” and allows the bankruptcy process to truly begin.

At the outset of Chapter 7 proceedings, a court-appointed trustee will review your finances. They will determine your current worth and which of your assets are considered exempt and non-exempt from bankruptcy. Certain assets are exempt, which means they will not be liquidated if you file for Chapter 7 bankruptcy. Some of the assets that are exempt in Massachusetts include:

• Household Necessities (Such as Clothes and Bedding)
• Up to $7,500 in Vehicle Equity
• 85% of Your Gross Earnings; or, an Amount Equal to 50 times MA Minimum Wage
• Your Primary Residence

If an asset is exempt, it will not be liquidated in bankruptcy proceedings. This means you will keep these assets even if you file for Chapter 7 bankruptcy. Take steps toward financial recovery by contacting our Massachusetts Chapter 7 bankruptcy lawyer today.

341(a) Meeting

Once your non-exempt assets have been identified, you must meet with your creditors or their representatives in what is known as a 341(a) meeting. This is a sort of “clearing the air” meeting during which your creditors will have the opportunity to review your petition, ask questions, and ensure their concerns are being addressed. These meetings are usually brief, lasting about 10 to 15 minutes, and are often formalities. In many cases, creditors may not even show up. Regardless, this is a key component of the Chapter 7 process.

When the 341(a) meeting has been satisfied, the court will determine a plan for liquidating your assets and paying off unsecured debts. This is the part of the process most people have in mind when they think of bankruptcy. This period usually lasts about 2-3 months past the date of the 341(a) meeting. Once this period is over, most or all of your unsecured debts will have been discharged.

What Are Considered Unsecured Debts?

When dealing with bankruptcy, there are two types of debts: secured and unsecured. Secured debts are those debts with collateral in place that can be seized in the event of a default or forfeiture. Auto loans are perhaps the most well-known example of a type of secured debt. If you are late on your car payments or default on the loan, your car may be seized to “make up” for it. On the other hand, a credit card balance is considered an unsecured debt. This is because the credit card company cannot seize what you used the card to purchase, especially services or intangible purchases, such as paying for a meal or having work done on your car. Examples of common unsecured debts include, but are not necessarily limited to:

• Credit Card Bills
• Medical Bills
• Personal Loans

Chapter 7 bankruptcy primarily eliminates unsecured debts. Although they may seem like unsecured debt, student loans are generally exempt from discharge under Chapter 7 unless you can pass a special “undue hardship test.” Our dedicated and experienced attorney can help review your case and determine if you qualify for undue hardship.

Once your assets have been tallied and your secured and unsecured debts determined, your assets will be liquidated and the proceeds used to pay your creditors. At this juncture, you will have options regarding your secured debt. One potential option is a reaffirmation agreement. This is a legal agreement stating that, despite your bankruptcy, you intend to continue paying the debt. This may be a good option for people who wish to keep ownership of a house or car with a relatively low value.

If you are unconcerned with keeping the collateral for a secured debt, you may opt to surrender it. This can eliminate the debt and “wipe clean” that particular slate. Another potential option is determining a redemption settlement. If your creditor agrees, redemption allows you to pay an agreed-upon lump sum to wipe the debt and claim ownership of the collateral. Attorney Thomas Benner can review your precise circumstances and determine the best route for your secured debts.

Who Qualifies For Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is intended to help individuals with low income alleviate their debt. To ensure the program is only being utilized by those who qualify, anyone filing for Chapter 7 bankruptcy must pass the means test. The means test determines a person’s current financial situation compared to the rest of the population of the state. One of our experienced bankruptcy attorneys can help you understand whether you qualify under Chapter 7.

The first step in the means test is comparing your average monthly income to the median family income in Massachusetts. If your income is below the state’s median, you pass the means test, which means you can file for Chapter 7 bankruptcy. If your income is above the state’s median, you must move on to the next step in the means test process. This step involves calculating your monthly disposable income.

To calculate your disposable income, you will need to subtract certain living expenses from your monthly income. If your disposable income is low after subtracting these expenses, you may qualify for Chapter 7 bankruptcy.

Do I Need an Attorney to File for Bankruptcy?

Technically, no one “needs” an attorney to file for bankruptcy. Paperwork is available for every American citizen that will theoretically allow them to file their own bankruptcy and represent themselves in court. However, this is usually a mistake. Bankruptcy law is incredibly complex and challenging to understand. Many attorneys who have not specialized in bankruptcy may even struggle to explain or understand particular complex aspects of the law. Attorneys who deal with bankruptcy law often have years of experience and have dedicated significant time and focus to understanding the particulars.

Working with an experienced bankruptcy attorney at a reputable law firm or law office can help ensure that this process goes as smoothly as possible. In Massachusetts, many people struggling with unmanageable debt caused by job loss, medical expenses, child support, or overwhelming creditor harassment turn to Massachusetts bankruptcy lawyers for guidance on how to eliminate debt and stop aggressive debt collectors through the power of the automatic stay. These bankruptcy lawyers not only offer strategic legal counsel but also provide compassionate support and practical legal solutions tailored to each client’s unique financial situation.

At Benner Law, we understand the challenges that come with filing for bankruptcy and dealing with crippling debt. As a recognized debt relief agency serving clients across Southeastern Massachusetts, we help clients understand their rights under the law and explore all available options for bankruptcy relief. Get the legal assistance you deserve today and contact an experienced bankruptcy lawyer in Massachusetts.

What Should I Do if I Need to Declare Chapter 7 Bankruptcy in Massachusetts?

Everyone runs into difficulties in life. Most of us deserve to have a clean break or a “second chance.” This is especially true when our difficulties are financial in nature. Chapter 7 bankruptcy allows low-income Bay Staters to get that fresh start and begin their lives anew. Some people may attempt to file for bankruptcy themselves. This is often a mistake. Bankruptcy law is complex, and many individuals discover it takes more time and money to deal with bankruptcy themselves than if they had hired an attorney. This is why if you or a loved one is in financial trouble and considering Chapter 7 bankruptcy, it’s vital you contact the compassionate, dedicated, and experienced Tom Benner at Benner Law.

Let us carefully review your financial situation and debt issues to determine if Chapter 7 bankruptcy is right for you. If it is, we will stand by your side and guide you through the entire process to help you finally get the financial future you deserve.

We offer services throughout Massachusetts and have offices in the following locations:

• Plymouth, MA
• Braintree, MA
• New Bedford, MA
• Taunton, MA
• Hyannis, MA

Find Out If Chapter 7 Bankruptcy Is Right for You, and Call Now

Financial troubles can happen to anyone. They can be especially devastating when someone with a low income or limited resources finds themselves facing mounting debt. Many people feel like there’s no way out. This isn’t true. Chapter 7 bankruptcy can give you a fresh start. To get that fresh start, you need an experienced bankruptcy attorney like Tom Benner on your side. Tomorrow can begin today- if you call now.

To learn more about Chapter 7 bankruptcy and other debt-relief options, book a free consultation today at (774) 228-7338.