Bankruptcy
Massachusetts Personal Bankruptcy Lawyer
Attorney Scott C. Crabtree strives to give relief to clients facing personal financial difficulties. Whether you are having trouble paying your mortgage, car loan or credit card debts, bankruptcy laws exist to assist you in getting a fresh start or crafting a plan to stabilize your economic situation.
Consumers typically have two options when seeking bankruptcy relief.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common form of bankruptcy protection. Chapter 7 bankruptcy is a liquidation whereby a debtor's assets that are not exempt under Massachusetts law can be sold to repay creditors.
In a Chapter 7 bankruptcy, a debtor’s general unsecured debt can be discharged without any type of repayment. The person filing bankruptcy is entitled to keep his/her personal property so long as that property does not exceed a certain value. Property a person keeps is known as exempt. Examples of exempt property are clothing, certain retirement accounts such as a 401k, and home furnishings. Examples of non-exempt property include stocks, expensive jewelry, and cash.
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Exemptions: There are many exemptions available to Massachusetts Residents. Typical exemptions include clothing, equity in a home up to $500,000, and qualified retirement accounts.
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Non-Dischargeable Debts: Not all debts can be discharged. First, secured debts cannot be discharged. So, even if you file bankruptcy you will be responsible for your mortgage and car note. Other types of non-dischargeable debts include child support, judgments for fraud, alimony, student loans, and most tax debts.
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Income Taxes: Under some circumstances, income taxes may be dischargeable. In order to be dischargeable, the tax debt must not have occurred because of fraud or evasion, must have been assessed at least 240 days prior to filing, and at least three years old and a tax return on file.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is designed for individuals who can repay a portion of their debts. In most circumstances, Chapter 13 Bankruptcy is the only form of bankruptcy protection available if your income is above the Massachusetts median income.
In a Chapter 13 Bankruptcy a competent attorney like Scott C. Crabtree will help you create a debt repayment plan (known as a Chapter 13 Plan) that allow you to pay back a certain percentage of your debts over the course of three to five years.
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The Amount Repaid. The Chapter 13 Plan repayment plan is determined by subtracting your household living expenses from your household income. Any income that is left over after basic expenses such as rent and mortgage, electric utilities, car payments, and insurance will be paid to the bankruptcy trustee. The bankruptcy trustee, in turn, will pay your creditors according to your Chapter 13 repayment plan.
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Foreclosure & the Automatic Stay. Finally, a Chapter 13 bankruptcy will stop any foreclosure proceedings against you. As long as the petition is filed prior to the completion of the foreclosure sale, you may prevent the bank from auctioning the property. However, in order to keep the property, you must have the ability to
All personal bankruptcies are complicated and highly emotional. Their impact is profound. That is why it is critical to work with a qualified attorney to ensure you meet obligations and are in the best position possible for a fresh start.
SERVING CLIENTS IN MASSACHUSETTS, NEW JERSEY AND PENNSYLVANIA
Scott C. Crabtree’s Saugus, MA offices represents clients with a trusted personal touch. Serving Middlesex and Essex counties, and greater Boston. He is licensed in Massachusetts, New Jersey and Pennsylvania. Contact us today, or call 781-233-3334 for an initial free consultation.
