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Bankruptcy law in Boston falls under the jurisdiction of the United States Bankruptcy Court for the District of Massachusetts. This federal court provides a legal procedure for those facing substantial debt to seek financial relief. The law primarily focuses on two chapters — Chapter 7 or "liquidation" and Chapter 13 or "reorganization". Bankruptcy is a complex process that may help solve debt problems but also can have long-term implications on your credit records.
Considering the significant legal and financial implications of declaring bankruptcy, it is crucial to have expert guidance. You may need a lawyer to help you understand which type of bankruptcy you qualify for, to prepare and file your bankruptcy petition and schedules, to represent you at bankruptcy meetings and court hearings, and to guide you through the confusing maze of laws and regulations.
In Boston, as is the case generally in Massachusetts, there are specific local rules and procedures to follow when filing for bankruptcy. These include necessary credit counseling before filing, means-testing to determine eligibility for Chapter 7 or Chapter 13 bankruptcy, and attending a "341 meeting" of creditors. There are also specific Massachusetts exemptions which protect certain properties from being seized in bankruptcy proceedings.
Chapter 7, known as 'liquidation,' involves selling off your non-exempt assets to pay back a portion of your debt, with most remaining debt discharged. In contrast, Chapter 13 Bankruptcy allows you to create a 3-5 year repayment plan to pay off your debt. This path allows you to keep your assets.
Massachusetts' bankruptcy laws provide exemptions that allow you to keep certain assets, like your home, car, personal belongings, or retirement benefits, up to certain amounts.
A Chapter 7 bankruptcy filing can remain for up to 10 years, and a Chapter 13 filing can remain for up to 7 years on your credit report.
No. Bankruptcy usually cannot discharge student loans, child support, alimony, tax debts, and some other types of debts.
In general, a Chapter 7 bankruptcy case takes about 4-6 months to complete from filing to discharge, while a Chapter 13 bankruptcy case takes 3-5 years due to the repayment plan.
The United States Bankruptcy Court, District of Massachusetts, and the Massachusetts Bar Association are vital resources for general information. For low-income residents, Greater Boston Legal Services offers pro bono (free) legal help.
If you are considering bankruptcy, it is advisable to consult with a bankruptcy lawyer to understand your options and their implications. Preparing a careful inventory of your assets, debts, and income can assist the attorney in advising you. Remember, bankruptcy is a significant decision, and it may affect your financial and personal life for years. Hence, do not rush the decision and gather as much advice and information as possible.
