What is Chapter 13 Bankruptcy?
Chapter 13 is a type of bankruptcy that allows an individual to enter into a repayment plan with creditors through the bankruptcy court. In this repayment plan, a Massachusetts resident (or resident of any other state for that matter) is able to repay over time their debt. Often, in Chapter 13 bankruptcy, a person is able to essentially rid themselves of some of the debt they owe as well. The net result of this process under Chapter 13 bankruptcy is that an individual ends having to pay less than they owe over a longer period of time while being able to keep their possessions (their family home and other important assets).
Can I File for Chapter 13 Bankruptcy?
The answer to this question is a typical answer provided by attorneys….that is, it depends. Whether you can file for Chapter 13 bankruptcy, depends upon how much money the potential filer in bankruptcy owes…how much debt that person has. Essentially, there are debt limits which might prevent a bankruptcy filer from being able to file in Massachusetts. Most persons seeking to file bankruptcy will not exceed these debt limits.
A second screen that affects bankruptcy filers in Massachusetts is that in order to file under Chapter 13 bankruptcy, the individual must have a consistent income. The reason that the bankruptcy courts require Chapter 13 petitioners to have a steady income is that the Bankruptcy Court is seeking to ensure that creditors will be paid over time. Obviously, creditors can’t be paid by the petitioner in Chapter 13 if that person is not working a steady job with sufficient income and reasonable living expenses to make such a repayment plan work.
How Much Do I Have to Pay to File Chapter 13 Bankruptcy in Massachusetts?
It may seem counterintuitive to a person seeking to file bankruptcy to consider the amount of money that they will have to pay an attorney when they file for Chapter 13 bankruptcy, however, the cost of the attorney’s services must be factored into this equation as well. Our offices can structure your payment of attorney’s fees in several ways. Generally, we will charge a flat fee for our services. However, when such a fee is unaffordable at the beginning of the relationship, we can adjust the amount of our typical fee and build in repayment of our fees over time in some cases.
Are There Other Costs Associated with Bankruptcy in Massachusetts?
Yes. Generally, court filing fees are the only substantive costs that a Massachusetts bankruptcy filer must consider. These may be included our attorney’s fees or separated depending upon the circumstances of the potential individual bankruptcy filer.
What Happens to My House When I File for Chapter 13 Bankruptcy in Massachusetts?
Your family home may be at risk when filing for bankruptcy, although this is typically less of an issue if you qualify for Chapter 13 bankruptcy. One helpful fact for homeowners who wish to keep their family home is to file for a homestead exemption in Massachusetts. Our offices can assist you in filing for a homestead exemption. A homestead in Massachusetts is a fairly simply thing to achieve.
Do I Have to Use an Attorney to File for Bankruptcy?
This is a perfectly reasonable question, particularly if you are in the market for an attorney, noticing the cost of the attorney and concerned about acquiring additional debt. So, while it is certainly possible to file for Chapter 13 Bankruptcy in Massachusetts without an attorney it is not advisable. Filing for bankruptcy in Chapter 13 without an attorney is like taking a raft down river rapids by yourself…sure, you might be able to manage it, but wouldn’t you be better served to hire a guide who has done it many times before.
Another consideration about filing for Chapter 13 bankruptcy by yourself is that you may have to engage in motion practice. That is, you may have to perform services that are usually done by an attorney – arguing in court, presenting arguments in a manner that the Bankruptcy Court requires them to be presented. Consider the fact that motion practice is challenging enough for an attorney with years of practice…you do not want to be in this position without a net.
Our Office Can Help
Attorney Gaudet can take you through the bankruptcy process. Call us today at 978-273-8337 for a free consultation.
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The information provided in the pages and posts of this website are for general informational purposes only. The information presented on this site is not legal advice, and no attorney-client relationship is formed by the use of this site.
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