If you are considering bankruptcy in Massachusetts, one of the first questions you likely have is: how long will this take? The answer depends primarily on which chapter of the Bankruptcy Code you file under. For most individuals in Massachusetts, that means either Chapter 7 or Chapter 13. This guide walks you through the timeline for each, step by step.
Chapter 7 Bankruptcy Timeline in Massachusetts
Chapter 7 is often called “liquidation” bankruptcy. It is the faster of the two options and is designed for individuals whose income falls below a certain threshold or who otherwise qualify under the means test.
Step 1: Filing the Petition (Day 1)
The moment you file your Chapter 7 petition with the United States Bankruptcy Court for the District of Massachusetts, the automatic stay goes into effect immediately. The automatic stay halts collection calls, wage garnishments, lawsuits, and most foreclosure proceedings while your case is pending.
Step 2: The 341 Meeting of Creditors (Approximately 30 Days After Filing)
After you file, the bankruptcy trustee will schedule a 341 meeting of creditors, typically within 30 days of your filing date. This is a brief meeting usually 5 to 15 minutes held before the trustee rather than a judge. You will need to verify your identity and answer questions about your assets, income, and financial affairs under oath. Creditors are permitted to attend but rarely do.
Step 3: The 60-Day Objection Period
Once the 341 meeting is concluded, creditors have 60 days to file an objection to the discharge of your debts. This period is set by the Federal Rules of Bankruptcy Procedure, though the court can extend it upon a timely filed motion by a creditor. In straightforward cases with no complications, this period passes without any creditor objection.
Step 4: Discharge (Approximately 90 Days After Filing)
Absent any objections or complications, the bankruptcy court will issue a discharge order roughly three months after you filed your petition. The discharge legally eliminates your personal liability on most unsecured debts, such as credit card balances and medical bills. Once discharged, your case is closed and you can begin rebuilding your financial life.
Chapter 13 Bankruptcy Timeline in Massachusetts
Chapter 13 is a reorganization bankruptcy that allows you to repay some or all of your debts over a structured repayment plan. It is often used by individuals who want to save a home from foreclosure or who have income too high to qualify for Chapter 7. The tradeoff is time: Chapter 13 takes significantly longer.
Step 1: Filing and the Automatic Stay (Day 1)
Just as with Chapter 7, filing a Chapter 13 petition immediately triggers the automatic stay, stopping foreclosure, repossession, and collection actions while your case proceeds.
Step 2: 341 Meeting of Creditors (About 30 Days After Filing)
A 341 meeting is also required in Chapter 13 cases. As with Chapter 7, it is typically scheduled about 30 days after your petition is filed and is conducted by the bankruptcy trustee.
Step 3: Plan Confirmation
In Chapter 13, you must propose a repayment plan that specifies how you will pay your debts over time. The court must confirm (approve) the plan before it goes into effect. This typically happens within 45 to 60 days after the 341 meeting, though it can take longer if creditors or the trustee object to the plan terms.
Step 4: Repayment Plan (3 to 5 Years)
The length of your Chapter 13 repayment plan depends on your income relative to the Massachusetts median income. If your income is below the median, your plan will generally run for three years. If your income is above the median, your plan will generally run for five years. During this period, you make monthly payments to the trustee, who distributes funds to creditors according to the confirmed plan.
Step 5: Discharge
Once you have successfully completed all plan payments, the bankruptcy court will enter a discharge of any remaining eligible debts. This discharge comes at the end of your three- or five-year plan, making the total Chapter 13 process significantly longer than Chapter 7.
What Can Delay Your Bankruptcy Case?
While the timelines above represent typical cases, several factors can extend your bankruptcy proceedings: incomplete or inaccurate paperwork, creditor objections to the dischargeability of a specific debt, trustee investigations into suspected fraud or non-exempt assets, failure to complete the required credit counseling or debtor education courses, and plan modification requests in Chapter 13 cases due to a change in income or circumstances.
Frequently Asked Questions
Can I file bankruptcy while a lawsuit is pending against me in Massachusetts?
Yes. Filing bankruptcy typically triggers an automatic stay that halts most civil lawsuits against you. However, certain proceedings such as criminal cases, domestic support actions, and some regulatory matters are not stayed by a bankruptcy filing.
Will bankruptcy stop a foreclosure in Massachusetts?
Filing for bankruptcy will temporarily pause a foreclosure through the automatic stay. Chapter 13 in particular can allow you to catch up on missed mortgage payments over the life of your repayment plan, potentially saving your home. Learn more in our article on how bankruptcy affects foreclosure in Massachusetts.
Do I need an attorney to file bankruptcy in Massachusetts?
While individuals are technically permitted to file without an attorney, the bankruptcy process involves complex legal documents, strict deadlines, and court hearings. Errors in your petition can result in dismissal, loss of assets, or denial of discharge. Working with an experienced Massachusetts bankruptcy attorney significantly increases the likelihood of a successful outcome.
Work With a Massachusetts Bankruptcy Attorney
Navigating the bankruptcy process in Massachusetts requires a thorough understanding of the Bankruptcy Code, local court rules, and applicable case law. At the Gaudet Law Office, we guide clients through every step, from evaluating whether bankruptcy is the right option, to preparing and filing your petition, to representing you at the 341 meeting and beyond. We treat every client with the respect and dignity they deserve during what is often one of the most difficult decisions of their lives.
For more information about bankruptcy in Massachusetts, explore these related articles: Is Bankruptcy the Best Choice for a Massachusetts Resident? | What Property Is Exempt in a Massachusetts Bankruptcy? | How Does Bankruptcy Affect Foreclosure in Massachusetts? | Massachusetts Chapter 7 Means Test | Your Responsibilities When Filing for Bankruptcy
DISCLAIMER: The information provided on this website is for general informational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading or using this site.
