Filing for Chapter 7 bankruptcy in Massachusetts is a liquidation or “true” bankruptcy. It is the quickest and simplest bankruptcy filing.
Under Chapter 7 bankruptcy, using the federal bankruptcy exemptions, you are allowed to keep property that is classified as exempt such as:
- Part of your home equity
- Up to a certain value for jewelry
- Necessary furnishings and home goods
- A specific percentage of your motor vehicles
- Damages awarded because of a personal injury claim
- State benefits such as welfare, social security and unemployment
- A specific value for professional tools
- Pensions
- Home appliances
- Necessary clothing
At times, it may be more advantageous to use the state bankruptcy exemptions which provide different exemptions than the ones listed above. Our bankruptcy attorneys will assist you in determining which exemptions are best for your particular situation.
Non exempt assets will be liquidated by a court appointed trustee for distribution to creditors.
Any wages you earn you may now keep in their entirety, as wage garnishment must also cease. You can now start to repair and rebuild your credit so that you can put this stressful chapter in your life behind you and move ahead with a fresh start.
In order to qualify for a chapter 7 bankruptcy, you must pass the “means test”. The bankruptcy “means test” is used to determine whether your income is low enough for you to file a Chapter 7 bankruptcy. To take the means test, you must first determine whether your income is more or less than the median income in your state. Median income levels vary by state and household size, and each county and metropolitan region has different allowed amounts for categories of expenses such as basic necessities, housing, and transportation. If your current monthly income is less than the median income for a household of your size in your state, then you pass and qualify to file a Chapter 7 bankruptcy.
Just because you qualify under the means test does not necessarily mean you should file for Chapter 7 bankruptcy — it simply means that you can. Any decision to file for Chapter 7 bankruptcy should be made only after considering all the implications of a bankruptcy filing as well as evaluation of bankruptcy alternatives.
If you earn more than the median income for your state and household size, you must figure out whether you would have enough income left over, after subtracting certain expenses, to repay some of your debt. The means test deducts specific monthly expenses from your “current monthly income” (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income. If your disposable income adds up to more than a certain amount, then you fail the means test and cannot file for Chapter 7 bankruptcy. High income filers who fail the means test may be ineligible to file a Chapter 7 bankruptcy but may instead file a Chapter 13 bankruptcy to repay a portion of their debts.
If you move forward and your bankruptcy attorney files your the Chapter 7 petition for bankruptcy, you will immediately be granted an automatic stay, which means that calls from debt collectors must stop, and they cannot seize your property or file a lawsuit against you while your Bankruptcy is pending.
Our Massachusetts Chapter 7 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 7 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.
