1. What is Chapter 7 Bankruptcy?

In a Chapter 7 case, a debtor turns over their nonexempt property to a trustee of the court, who then converts the property to cash and pays off the debtor's creditors. In return, the debtor receives a Chapter 7 discharge.

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2. Are there any debts not dischargeable under Chapter 7?

• Taxes due that are less than three years old

• Debts that occurred under false pretenses or fraud

• Debts not listed on the debtor's Chapter 7 forms

• Debts for embezzlement or larceny

• Debts for alimony or child support

• Debts for intentional injury to the person or property of another

• Debts for certain fines or penalties

• Debts for educational benefits and student loans

• Debts for personal injury or death caused by the debtor's operation of a motor vehicle while intoxicated

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3. Who is eligible to file under Chapter 7?

Any person who resides in, does business in, or has property in the United States may file under Chapter 7, except a person who has been involved in another bankruptcy case that was dismissed within the last 180 days or a person who received a discharge within the past six years.

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4. What is Chapter 13 Bankruptcy?

In a Chapter 13 case, the debtor must submit to the court a plan for the repayment of all, or a portion of, his or her debts. The debtor must make regular payments to a trustee, who disburses the money to their creditors. Upon completion of the payments, the debtor is released from liability for the remainder of his or her dischargeable debts.

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5. When is Chapter 13 preferable to Chapter 7?

Chapter 13 is usually preferable for a person who:

• wants to repay all or most of his or her unsecured debts and has finances to do so within a certain time frame, usually three years.
   

• has valuable nonexempt property or has valuable exempt property securing debts, both of which would be lost in a Chapter 7 case.
   

• is not eligible for a discharge under Chapter 7.
   

• has one or more substantial debts that are dischargeable under Chapter 13, but not under Chapter 7.

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6. What types of debts are NOT dischargeable under Chapter 13?

• Debts that were paid outside of the plan and not covered in the plan
   

• Debts for alimony or child support
   

• Debts for death or personal injury caused by the debtor’s operation of a motor vehicle while intoxicated
   

• Debts for criminal fines
   

• Debts for most student loans
   

• Installment debts whose last payment is due after the completion of the plan
   

• Debts incurred while the plan was in effect, yet not paid under the plan

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7.  Will bankruptcy stop a wage garnishment or a judgment against me?  

Bankruptcy will terminate garnishments earned after the filing of the bankruptcy. Bankruptcy will also stop court proceedings against you.

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8.  Will my creditors stop harassing me?

By law, all actions against a debtor must cease once bankruptcy documents are filed. which includes harassing phone calls from creditors.

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9.  Will my spouse be affected if I file bankruptcy?

Your spouse will not be affected by your bankruptcy if they are not responsible for your debt.

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10.  Will I ever be able to get credit again?

Yes.  Chapter 7 or 13 Bankruptcy may stay on your credit report for up to 10 years, but it becomes less significant with each year that passes.  The truth is that you are probably considered a better credit risk after bankruptcy than before.

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11.  How much does it cost to file for bankruptcy?

On average, it will cost about $200 to file for bankruptcy.  The costs for hiring an attorney vary, but many bankruptcy lawyers will give you a free initial consultation. 

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Once your bankruptcy proceeding is complete, you will be given a "fresh financial start." The court order will end your responsibility for dischargeable debts.

Contact the Massachusetts Bankruptcy Lawyers of Klein & Miller to help you objectively review your situation, and if need be prepare your bankruptcy forms, attend meetings with your creditors and serve as your advocate with the judge, trustee and creditors.

If you are unable to manage your bills, call an attorney to learn more about your rights as a debtor.

Call an experienced bankruptcy attorney now: (800) 313-5741

info@massachusetts-bankruptcy-lawyers.com