Eligibility for chapter 7 bankruptcy in Worcester, MA is determined by household income. The federal government establishes median income standards for each state based on household size. During your consultation, our attorney will discuss the specific median income thresholds applicable to your household situation.

Filing for chapter 13 bankruptcy allows you to retain your home while addressing mortgage arrears. This option provides up to 60 months to repay overdue mortgage payments or other secured debts. To qualify, you must demonstrate the financial capacity to maintain regular monthly payments alongside your chapter 13 plan payment. This plan payment will include an amount for arrears and a portion of unsecured debt. Additionally, current private real estate insurance is required. Our bankruptcy attorney can guide you through this process.

A discharge, under federal bankruptcy law, releases a debtor from personal liability for certain specified debts. This means the debtor is no longer legally obligated to pay discharged debts. The discharge acts as a permanent order prohibiting creditors from pursuing any collection actions on discharged debts, including legal proceedings and direct communications. While a discharge relieves personal liability, valid liens not avoided in the bankruptcy case remain enforceable. For clarification on discharges, consult with our bankruptcy attorney.

Creditors may continue to contact you until you officially file for bankruptcy. Once your petition is filed, all creditors will be notified of your case number and must cease all collection efforts. This includes halting letters, phone calls, and legal actions. For more information about creditor communication during bankruptcy, please contact our office.

Retaining assets secured by loans is possible if you can maintain payments and insurance on these items. We will advise you on which payments must continue after filing and what arrears, if any, need to be brought current.

Not all debts are dischargeable in bankruptcy. Non-dischargeable debts typically include: unlisted debts, child support, alimony, court-ordered support payments, liabilities from DUI-related injuries or deaths, fraudulently incurred debts, most student loans, most tax liabilities, and criminal restitution orders. For a detailed assessment of your specific debts' dischargeability, we recommend scheduling a consultation with our bankruptcy lawyer.

An individual may file for bankruptcy without their spouse if the debts are solely in their name. However, if the spouse is a co-obligor on any debt, they would remain liable unless they also file. It's important to note that even in individual filings, the bankruptcy code requires reporting of the entire household's income. For personalized advice, consult with our bankruptcy attorney.

A debtor may file a subsequent chapter 7 bankruptcy eight years after receiving a discharge in a previous bankruptcy. This time restriction may vary if the debtor intends to file for chapter 13 bankruptcy. Our attorney will discuss how your personal bankruptcy history might impact a new filing. For more detailed information about filing frequency, please contact our office.

Each state offers specific exemptions allowing you to retain certain personal property and real estate. Massachusetts is among the few states that permit choosing between federal exemptions or state exemptions. Our bankruptcy attorney will help determine which option is most advantageous for your situation. Be aware that items considered 'luxuries' are typically not exempt and may be liquidated by the bankruptcy trustee to benefit your creditors.