Chapter 7 Bankruptcy Lawyer in Raynham, MA
These days, it’s hardly uncommon for people to incur a substantial amount of debt. It seems as if everyone has multiple credit cards with large balances, or a huge mortgage that they can barely afford. As a result, some people simply get in over their heads, forced to juggle monthly payments that exceed their available funds. Fortunately, there is a way out. Chapter 7 bankruptcy allows individuals to eliminate their debts and create a clean slate.
What Is Chapter 7 Bankruptcy?
Title 11 of the United States Code (often called the United States Bankruptcy Code) supports nine different types of bankruptcy, each classified under an individual “chapter.” Chapter 7 is the liquidation option, allowing the filer to erase their debts completely. This is the most common type of bankruptcy.
In some Chapter 7 cases, the debtor is required to sell off a portion of their personal property in exchange for debt forgiveness, but the law permits the bankruptcy filer to exempt certain types of property, up to a specified value, from the liquidation process. The debtor is allowed to base their bankruptcy filing on either the federal exemption statutes or the Massachusetts exemption statutes, which differ in the types of protections they offer. They can select whichever set of statutes works best for them when filing bankruptcy. Even if a certain piece of property is ruled to be non-exempt, the debtor can often retain possession of it by signing a reaffirmation agreement where they retain responsibility for debts associated with the property.
The Means Test
The debtor is required to pass what is called a “means test.” In general, an individual cannot file for Chapter 7 liquidation unless their income falls below the median for the state where they live. There are exceptions to this rule, however; our Cape Cod lawyers can help you sort through your available options.
The Chapter 7 Process
Filing bankruptcy under Chapter 7 provides a number of immediate benefits. As soon as the papers are filed, the debtor is granted an “automatic stay.” This means that all creditors must cease all collection activities, including phone calls to the debtor.
It usually takes just a few months for the bankruptcy to go through the system and become approved. The debtor will not be able to file for Chapter 7 again for eight years (calculated from the date of the initial filing). The bankruptcy stays on the filer’s credit report for ten years.
Contact a Chapter 7 Bankruptcy Lawyer Today
If you live in Raynham, MA, you can contact Common Law Associates, LLP, for help with your bankruptcy case. Our team of experienced lawyers will help you file Chapter 7, or determine whether another option may offer the best course of action. We invite you to take advantage of our reasonable fees, flexible payment plans, and years of knowledge relating to bankruptcy law in Massachusetts.
Chapter 7 bankruptcy can stop foreclosure, eliminate your credit card balance, and get rid of annoying debt collectors. Call Common Law Associates, LLP, today at (508) 884-9700 and ask for a free consultation. We will beat any competitor’s price by 10%!