Personal Bankruptcy

How many different chapters of bankruptcy are available in Massachusetts and how do I know which one to file?

There are four types, known as chapters, of bankruptcy. They all have the same goal: relieving troublesome debt for individuals and businesses that have become overwhelmed. The number of options that are available for people and businesses who feel that they may need to file bankruptcy can be difficult to understand and should be thoroughly explained to you by your Beverly, MA bankruptcy lawyer.

The chapters of bankruptcy and their primary focuses are as follows:

• Chapter 7 Bankruptcy: debt liquidation bankruptcy. The most familiar type of bankruptcy, in a Chapter 7 you will be expected to give up all your property with the exception of specific exemptions. If you would like to maximize the property you are able to retain ownership of, working closely with an experienced bankruptcy 7 lawyer in Beverly, MA is your best bet.
• Chapter 11 Bankruptcy: commercial bankruptcy. Chapter 11 bankruptcy is used almost entirely by companies rather than individual people. It is not impossible, however, for a person with a very large amount of debt to file a Chapter 11. If you are of the belief that you may be eligible for a Chapter 11 bankruptcy, do not wait to contact a bankruptcy 11 lawyer.
• Chapter 12 Bankruptcy: family farmer bankruptcy. The requirements for a Chapter 12 bankruptcy are strict and limited to those who qualify as family farmers. Always search for a highly skilled bankruptcy lawyer before attempting a Chapter 12.
• Chapter 13 Bankruptcy: debt reorganization bankruptcy. In a Chapter 13, your Beverly, bankruptcy 13 lawyer would be expected to get the court to approve your repayment plan for your outstanding debts, which should be sustainable for you at your current income level.

Most bankruptcies that are filed by individuals and couples are Chapter 7 and Chapter 13 bankruptcies. Regardless of which type of bankruptcy you are planning to file, it is of the utmost importance to consult a reputable bankruptcy lawyer in Beverly, MA.

Will filing bankruptcy end creditor harassment?

Bankruptcy does end creditor harassment. You will be granted an automatic stay the very moment your bankruptcy is filed. You will not have to appear in court to ask for it; it is automatic and creditors are required to obey it. Your automatic stay will stop their phone calls and letters; there will be no more constant harassment. The automatic stay puts you in control of your debt. If any creditor contacts you within a few days of bankruptcy filing, give them your bankruptcy case number. The automatic stay covers:

• Garnishments
• Debt collection lawsuits
• Repossession
• Foreclosure
• Eviction
• Utility shutoffs
• Loss of driver’s license as an uninsured motorist
• Collection on overpayment of public benefits

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What Is A Chapter 11 Bankruptcy?

Chapter 11 is a provision of the bankruptcy code that allows individuals, corporations, LLCs, and partnerships to reorganize their debts when they are having financial problems. What a Chapter 11 allows them to do is to keep operating, and in so doing, get a sense of whether the business can survive financially. There is no free ride in a Chapter 11; the debtor needs to be able to maintain its ongoing expenses while simultaneously being able to propose a plan that will repay its creditors. The ultimate goal of a Chapter 11 is for the debtor to propose a plan of reorganization which provides for the manner in which its creditors will get paid, and a disclosure statement that addresses how they got to where they are and how they plan to get out of it along with financial information sufficient to allow the debtor’s creditors to determine if the debtor’s plan is viable. Read More

How Long Does A Chapter 11 Bankruptcy Case Take To Get Resolved?

A debtor’s Chapter 11 plan can take a year or two to get confirmed and payments start to be made to the creditors. When the initial distributions called for under the confirmed plan have been made to the creditors, and confirmation granted by the bankruptcy court, the case is closed. Unfortunately, in my experience, most Chapter 11 bankruptcies are unsuccessful. Few debtors make it to confirmation and fewer yet continue to operate one year after confirmation. Read More