Chapter 13 bankruptcy is the best way to handle specific types of problems, like curing a default on a mortgage. If you are filing for Chapter 13 , you will formulate a creditor payment plan with the bankruptcy court that will allow you to pay off your debts over time and any balance of the debts not paid under the plan will be discharged upon the plan’s completion (which typically takes 3 to 5 years).
Although most unsecured (non-collateralized) debt is dischargeable through bankruptcy, there is some debt which cannot be discharged. Some of these include:
child support obligations
most income tax obligations
student loans (except in rare situations)
Our Chapter 13 bankruptcy attorneys will ask you to provide documentation needed to complete the bankruptcy application (called a bankruptcy petition). You will also be required to complete a Credit Management course via telephone or online and provide the Certificate of Completion to your bankruptcy attorney to be included with your filing.
Once your bankruptcy petition is filed, the Bankrutpcy Court will notify you by mail of the date and time of your creditor meeting (referred to as a Section 341 Meeting of the Creditors) to provide creditors and the bankruptcy court an opportunity to ask about you about your assets, liabilities, and the bankruptcy filing. In most cases, the meeting is short, usually less than 15 minutes. Although creditors may attend the meeting, most are not present.
In most circumstances, the trustee will only ask a few questions. The meeting will be recorded by tape or by a court reporter.
Typical questions asked by the trustee include the following:
- What is your name and current address?
- Have you reviewed the application with your attorney?
- Did you sign the petition, statements, and schedules?
- Are your assets included on the schedules?
- Is the information contained in the petition, statements, and schedules correct?
- Have you previously filed for bankruptcy?
- What is the address of your employer?
- Have you transferred any property or given any property away within the last year?
- Does anyone owe you money?
- In the past year, have you made large payments over $600 to anyone?
- When you filed for bankruptcy, did you have any cash on hand, U.S. Savings Bonds, stocks, Certificate of Deposit, or a safe deposit box?
- Do you own a vehicle?
- Have you engaged in any business?
After your Sections 341 meeting, you will need to complete a second course called the Financial Management course via telephone or online. You will received a certificate which your bankruptcy attorney will need to provide to the Bankruptcy Court in order to get your bankruptcy discharge.
Some common myths about bankruptcy include the following:
- You will lose your home if you file. This is not true if you pay your mortgage, the bank will not take your home. Furthermore, there are certain situations where the second lien may be cancelled or “stripped”.
- You must wait to file until you are in severe financial distress with payment delinquencies and debt collectors harassing you. This is incorrect. If you anticipate financial difficulties, our bankruptcy attorneys will guide you to proactively create a plan for filing so you will not be sued, harassed or have your wages garnished.
- You will never be able to get credit again after bankruptcy. No one would file for bankruptcy if this were true. Secured credit is offered to high risk customers by some banks. Also, once you make consistent payments on your loans, credit limits may be increased and you can restore your credit.
- Bankruptcy involves intimidating court appearances and a drawn out trial. This is untrue. Most bankruptcies require the debtor only to appear at the Section 341 Meeting of the Creditors as explained above. There is no appearance in front of a judge.
Our Massachusetts Chapter 13 bankruptcy attorneys are located in Malden, Massachusetts and we serve clients throughout Norfolk County, Middlesex County and Essex County, Massachusetts. If you have a question concerning any of our areas of expertise or are in need of legal counsel, please contact our firm. We offer a no-cost initial consultation with an experienced attorney to assess your particular legal situation.We also offer legal services in Spanish and Italian.
The Chapter 13 bankruptcy attorneys at Simmons & Schiavo concentrate in bankruptcy matters and filing for bankruptcy in Massachusetts. Our bankruptcy attorneys serve the Greater Boston and Boston’s North Shore region including the communities of Everett, Revere, Chelsea, Somerville, Cambridge, Medford, Arlington, Winchester, Woburn, Burlington, Stoneham, Melrose, Wakefield, Saugus, Lynn, Peabody, Salem, Marblehead, Swampscott, Norfolk County, Middlesex County and Essex County, Massachusetts.
