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Restructuring and insolvency law in Boston focuses on helping individuals and businesses manage serious financial difficulties. This practice area covers a range of options, including debt restructuring, bankruptcy filings, out-of-court workouts, and creditor negotiations. Boston, as part of the federal judicial system of the United States, follows federal bankruptcy laws but also has its local procedures and considerations. The ultimate goal is to create a fair process for distributing assets or helping financially distressed entities and people gain a fresh start while protecting the rights of creditors.
Dealing with restructuring and insolvency can be overwhelming and legally complex. You might need a lawyer in situations such as:
A qualified attorney can help you choose the best solution for your situation, ensure compliance with complex laws, and represent your interests throughout the process.
While bankruptcy and insolvency cases in Boston fall under federal jurisdiction through the U.S. Bankruptcy Code, there are local rules and practices specific to the District of Massachusetts. The United States Bankruptcy Court for the District of Massachusetts, with a location in Boston, handles these cases. Key elements include:
Consulting a Boston-based lawyer is crucial to understand both federal and local nuances that will impact your case.
Bankruptcy is a legal process in which individuals or businesses seek court protection from creditors and, in many cases, discharge their debts. Restructuring generally refers to negotiating new terms with creditors to avoid bankruptcy and come up with a workable debt repayment plan.
Yes, in Massachusetts, there are special exemptions like the Homestead Exemption, which may allow you to protect a certain amount of equity in your home from creditors during the bankruptcy process.
Individuals commonly file under Chapter 7 (liquidation) or Chapter 13 (reorganization), while businesses most often file under Chapter 7 or Chapter 11 (business reorganization). An attorney can help determine which chapter is appropriate for your situation.
Not necessarily. Certain debts, such as student loans, alimony, child support, and some taxes, may not be dischargeable in bankruptcy.
Bankruptcy will significantly impact your credit score and remain on your credit report for several years. However, it also allows you to rebuild your financial health by eliminating or restructuring your debts.
Depending on your situation and the type of bankruptcy filed, you may be able to keep your home or car, especially if you can keep up with required payments and exemptions apply.
Most filers must attend a meeting of creditors, also known as a 341 meeting, but rarely have to appear before a judge unless there are disputes or specific issues in the case.
The United States Bankruptcy Court for the District of Massachusetts handles all bankruptcy cases filed in Boston. The court administers and oversees the process from start to finish.
Upon filing for bankruptcy, an automatic stay goes into effect, which generally stops most collection actions, including lawsuits, wage garnishments, and calls from creditors.
Absolutely. While bankruptcy or restructuring can be stressful, many individuals and businesses go on to rebuild credit, secure new financing, and enjoy renewed financial stability.
There are several organizations and resources in Boston to help those facing restructuring or insolvency:
If you or your business is struggling with debt, do not wait to seek help. The steps you should consider are:
Remember, restructuring and insolvency law is complex but the right legal guidance can make a big difference in your outcome. Acting early and with experienced counsel will help protect your interests and give you the best chance at a successful financial future.
