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Bankruptcy law in Worcester, Massachusetts encompasses legal proceedings involving a person or business unable to repay outstanding debts. It starts with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.
There are several situations where you might require legal advice when dealing with bankruptcy. These include understanding the complex paperwork and procedures, representation in court, and providing advice on whether to file for bankruptcy and what type is suitable for your circumstances. Additionally, a lawyer can help you understand your rights and the implications of bankruptcy on your future.
In Worcester, the bankruptcy process falls under Massachusetts state law and is handled by federal courts. Key aspects of the law include the means test to determine eligibility for Chapter 7 bankruptcy and the requirement for debt counseling prior to filing. For Chapter 13 bankruptcy, setting a feasible repayment plan is necessary. Homestead exemption is also significant law in Massachusetts, which allows you to exempt up to $500,000 of your home's equity.
Commonly, individuals file for Chapter 7 or Chapter 13 bankruptcy. Businesses typically file for Chapter 7 to liquidate or Chapter 11 to restructure.
Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while Chapter 13 bankruptcy stays for up to 7 years.
No, certain debts like student loans, alimony, child support, and some tax debts cannot be discharged in bankruptcy.
Not necessarily. Many debtor’s assets are protected in bankruptcy by exemptions like the homestead exemption in Massachusetts.
First, you'll go through credit counseling. Then, you or your attorney will file a petition and supporting schedules with the bankruptcy court. Creditors will then meet, and a repayment or liquidation plan is approved by the court.
The United States District Court, Massachusetts Bankruptcy Court, and American Bankruptcy Institute can be good resources. Also, you can consult the National Association of Consumer Bankruptcy Attorneys and the Massachusetts State Bar Association.
If you need legal assistance in bankruptcy, start by hiring a local bankruptcy attorney. Ensure they are familiar with the local and state laws. Next, collect all pertinent financial documents and discuss your situation in detail with your attorney to choose the best course of action.
