Filing for bankruptcy might be preferable to a short sale if you have a recourse mortgage loan and you have other debts besides your house. A Chapter 7 bankruptcy filing can discharge the mortgage debt as well as any personal obligation for a second mortgage or line of credit (given that you’ll no longer live [...]
Boston Bankruptcy Attorney Answers Chapter 7 & 13 Bankruptcy Questions
Monthly Archives: February 2010
If I’m married, do we both have to file for bankruptcy together?
The answer to that question depends on many factors such as the level of income of both parties, and whether debts are joint debts.
If one spouse accumulated the debt prior to marriage, then he/she may file without involving the other spouse. However if the debt is jointly held, then both will have to file together [...]
What is an “order for relief” from bankruptcy?
An Order for Relief acts as an injunction to stop creditors from collecting on outstanding debts for the duration of the bankruptcy case (often 3-4 months) . As soon as a case is filed with the Bankruptcy Court in Boston, all creditors are notified by mail and this notice acts as an injunction. If during [...]
What can’t be discharged in a bankruptcy in Boston, Massachusetts?
The following is a partial list of debts that may not be discharged in a Boston area bankruptcy filing:
Child support
Alimony
Taxes
Education loans
Loans repayment borrowed against IRAs
Debt associated with criminal wrongdoings
Evictions – if landlord acquires judgment to eviction before tenant files for bankruptcy
Evictions – if tenant endangers property with illegal use of controlled substances on the property
*Warning! [...]
What if I don’t tell my attorney about extra cash I’m hiding?
One week before the 341 meeting takes place (often one month after filing), the Bankruptcy Trustee requires you to submit your previous year’s bank statements. If, however, you hold extra cash not reflected in the statement balance, for instance, in a mattress, then you should report this to the Attorney or the Trustee.
A bankruptcy attorney [...]
Starting fresh after bankruptcy
So you’ve gotten your bankruptcy discharge and all your old debts are forgiven. You start from square one but chances are, you haven’t altered the way you budget your money, make money and value money.
Most Americans are one medical emergency or one job loss away from bankruptcy. But it doesn’t have to be like that [...]
Do I have to give up my tax refund to the bankruptcy trustee?
A tax refund is the property of the bankruptcy trustee. The trustee can use that money to pay off your creditors.
However, if you don’t have much equity in your home and chooses the Federal exemptions, then you may be able to keep the refunds provided the $11,000 of wildcard exemptions cover that amount and the [...]
What is a reaffirmation agreement in bankruptcy?
Reaffirming a debt requires you to sign a new contract with the creditor and this new agreement survives the bankruptcy. This is often not advised by bankruptcy attorneys in the Boston area, particularly because it creates an unnecessary obligation on behalf of the client or debtor. If the debtor has a loan on a car [...]
How do I pay a bankruptcy attorney and fees when I’m already broke?
If a potential filer has no funds to pay an attorney, he may consider the following options:
• Borrow from friends or family
• Use tax refund
• Borrow from their retirement plan but only in a foreclosure case where there’s urgency to do so
• Go on payment plans if provided by the attorney
More paperwork is now required to be filed electronically [...]
