Massachusetts Bankruptcy Information — Lawyers With Answers
Many people have misconceptions about the bankruptcy process, bankruptcy eligibility and other aspects of filing for bankruptcy. As experienced and knowledgeable bankruptcy lawyers, we dispel bankruptcy myths. We offer informative advice that enables people to make important decisions about their financial future.
Learn more about Massachusetts bankruptcy information. Our attorneys at Dane Shulman Associates, LLC, can answer your questions and guide you through the process. Contact us for a free consultation with our Boston consumer bankruptcy lawyers.
Helping You Understand the Truth About Bankruptcy Myths
Myth: Bankruptcy relief is no longer available.
Reality: Contrary to what many people believe, most people with debt problems still qualify for bankruptcy, even after the changes to the Bankruptcy Code in 2005. While the "means test" deters individuals with higher-than-median income from filing a Chapter 7 bankruptcy, most people who do not qualify for a Chapter 7 bankruptcy will still qualify for a Chapter 13 bankruptcy.
Myth: Bankruptcy will cause me to lose everything I own.
Reality: Under a Chapter 13 bankruptcy, you can actually keep all of your property if you choose to. And, while Chapter 7 bankruptcy is often referred to as Chapter 7 liquidation bankruptcy, most people who file for Chapter 7 bankruptcy can still keep most, if not all, of their property due to bankruptcy property exemptions.
Myth: All of my debts will be wiped out in bankruptcy.
Reality: While a considerable amount of your debt can be discharged (eliminated) in a Chapter 7 bankruptcy, there are certain debts that cannot be discharged. For example, child support obligations, spousal support obligations, most IRS debts and certain other obligations cannot be discharged. However, a Chapter 13 bankruptcy can help individuals with a high amount of non-dischargeable debt catch up in a three- to five-year repayment plan.
Myth: Filing for bankruptcy means I am a failure.
Reality: Most people who file for bankruptcy have endured a serious life-changing event that has put extreme hardship on their finances. Losing your job, proceeding through divorce, coping with a serious illness or any other life-changing experience can cause you to quickly fall behind on your mortgage and other debt obligations. Filing for bankruptcy represents your determination to reclaim control of your finances.
Myth: I won't be able to get credit after filing for bankruptcy.
Reality: While filing for bankruptcy will appear on your credit record for several years, you may begin to receive credit offers within just a couple years. Also, there are steps you can take to improve your credit rating — such as using credit wisely or paying bills on time or early.
Myth: I can only file for bankruptcy once.
Reality: You can file for bankruptcy more than once. You just have to wait longer. The changes to the Bankruptcy Code increased the length of time between bankruptcy filings. You can file another Chapter 13 bankruptcy after just two years from completing a Chapter 13 bankruptcy. You can file a Chapter 7 bankruptcy eight years after completing a Chapter 7 bankruptcy. Or, you can file a Chapter 13 bankruptcy just four years after completing a Chapter 7 bankruptcy.
Myth: I will have to repay all of my debt in a Chapter 13 bankruptcy.
Reality: Chapter 13 repayment plans are tailored to each individual's situation. Secured debt — your mortgage, car loan and other loans secured with collateral — must be repaid through the plan if you want to keep your home or other secured asset. However, in some cases, the unsecured debt — medical bills, credit card debt and certain other liabilities — can be substantially reduced or even eliminated in a Chapter 13 bankruptcy.
Myth: I can't get rid of tax debt in bankruptcy.
Reality: While the majority of recent tax debt is non-dischargeable, there are certain types of IRS debt that you may be able to eliminate through bankruptcy, such as certain tax obligations that are more than three years old.
Contact Our Massachusetts Bankruptcy Attorneys
Our law firm is dedicated to helping people overcome financial upset to a brighter future. Learn more about your debt relief options in a consultation with our Boston bankruptcy lawyers. Contact our Chapter 7 and 13 bankruptcy attorneys at Dane Shulman Associates for a free consultation. Call us to make an appointment: 617-379-1786 or toll free at 866-942-6740.
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