Recent Blog Posts

As the U.S. Deficit Continues to Rise, So Too Do Personal Debts

Boston Bankruptcy Attorney — Wed, 14 Mar 2012 18:14:00 GMT

The current United States account-deficit is at an unexpected high of $124.1 billion, a number that is said to be the largest it has reached in three years. A report issued by the Department of Commerce showed that the gap grew 15% from what it was expected to reach, a $107.6 billion shortfall that occurred in the quarter. Now forecasting economists are calling for a $115 billion fourth quarter deficit, as portrayed in a Bloomberg News survey.

It is speculated that goods will continue to be imported, a fact that is correlated to the recent rising trend that we have seen in the job market. Consumer spending is up, and so is the general practice of businesses replacing outdated equipment. Overall, the nation's payments deficit remains high, and it should serve as a reminder that the United States is still very dependent on foreign investors for funding. In a statement issued to the public, senior U.S. economist at BNP Paribas, J. Lawson, indicated that the chances of the deficit going up again will widen the gap even more so. In 2011, the gap widened to $473.4 billion from $470.9 billion in the previous year. This was 3.1% of the gross domestic product.

The continual rise in our nation's debt is a true testament to just how sticky the United States financial situation is. Home owners, employees, and the like are not the only ones struggling from overwhelming debt. Clearly, this is a problem this is being felt nationwide, including among the top levels of our federal government. If you are facing debt or the possibility of bankruptcy then you should not wait another minute before taking legal action. With the help of Boston bankruptcy lawyer from our firm you can begin to address your financial situation before it gets to a point beyond repair.

At Infinity Law Group, we are here to show you that there is life after bankruptcy, and we are willing to do whatever it takes to help you get to that point. Under our direction and legal guidance, you can get the fresh start you deserve. We offer a flat-fee rate to accommodate the financial needs of our clients. The incessant phone calls, creditor harassment, and more that have been plaguing your life as of late can be effectively put to rest with the help of an attorney from our firm. In fact, we will not be satisfied with anything less. To learn how our firm could be of service to you during this difficult time, do not hesitate to contact a Boston bankruptcy attorney from the Infinity Law Group today.

Welcome to our Bankruptcy Blog

Bankruptcy Attorney — Tue, 13 Dec 2011 23:49:00 GMT

We are pleased to announce the re-launch of our Bankruptcy Blog.

If I file for bankruptcy, can I still become a U.S. citizen?

Infinity Law Group — Wed, 16 Nov 2011 03:15:00 GMT

Yes you may still become a U.S. citizen because filing for bankruptcy doesn’t disqualify you from applying for Naturalization. However, one thing you will have to deal with due to filing for bankruptcy is whether there is any evidence because of the bankruptcy that will effect your good moral character requirement for citizenship. The Naturalization process requires that you prove good moral character and therefore, something like not paying your child support will be evidence of poor moral character. It is important to know that filing for bankruptcy does not mean you failed to pay for child support. In fact, child support payments generally can not be discharged in a bankruptcy.

The bank is auctioning our house. If I file for bankruptcy, can I keep the house?

Infinity Law Group — Sat, 22 Oct 2011 02:20:00 GMT

In order to keep the house, you will have to file for bankruptcy before the auction date. If you file after the house is auctioned off then the house will no longer be yours and you will have no relevance to the person who bought the house at the auction. You should file for bankruptcy plenty of time before the auction in order to give your attorney time to file all necessary paperwork.

What is the difference between being denied a discharged and non-dischargeable debt?

Infinity Law Group — Tue, 13 Sep 2011 01:50:00 GMT

A denial of a discharge means that ALL of your debts will be non-dischargeable. This would be the worst case scenario for someone trying to file for bankruptcy. This is because a denial of discharge would mean you are liable for paying all your debts back in full. This is a rare occurrence and will occur in the following situations: if you have failed to complete the finance management course, if you have concealed property, if you have failed to obey a court order, or if you have made false statements.

Meanwhile, a debt that is non-dischargeable means that there is one specific debt that is non-dischargeable. For example, student loans, child support, and alimony will be non-dischargeable, meaning you must pay this debt. Your bankruptcy will still go on and other debts can be discharged, it just means some particular debt can not be discharged.

Free Finance Tools - Part 3: getcreditable.com

Infinity Law Group — Wed, 31 Aug 2011 01:55:00 GMT

The goal for anyone is to avoid the need to file for bankruptcy. Many of us struggle with credit card debt and in fact, a large majority of cases I receive is people that are overwhelmed with credit card bills.

We’ve all heard of different strategies for paying off credit card debt. There’s the suggestion that maybe you should pay off the lowest balance first or the suggestion that you should pay off the highest interest rate card first. However you decide to do it, there’s a site that can help you keep track and make a plan for paying off your bills.

http://getcreditable.com/ will show you what you’re paying and how long it will take to pay off your credit cards at the rate you’re paying. This of course, assumes that you are not continuing to use your credit cards.

Free Finance Tools - Part 2: AnnualCreditReport.com

Infinity Law Group — Tue, 30 Aug 2011 01:55:00 GMT

Another cause for people filing personal bankruptcy is identity theft. Most people who are victims of identity theft don’t know about it until all of their credit has been maxed out by some criminal. Did you know however that you are entitled to a free copy of your credit report once a year by all 3 major credit bureaus?

AnnualCreditReport.com is the site that lets you get your credit report for free. Don’t get fooled by other sites that advertises free credit reports because they’ll usually try to get you to buy something. Remember, you are entitled by law, to one free credit report to each of the 3 credit agencies.

In order to maximize the use of the free credit reports, you should be looking at one credit report every 4 months so that by the end of the year, you would’ve used up all of your free reports for the year and you’ll also be consistently monitoring your credit report for fraudulent charges.

If you feel you need added security, you can ask each of the credit bureaus to either put a “credit alert” or “credit freeze” on your reports so that any new activity on the reports, the agencies must contact you before extending credit.

Free Finance Tools - Part 1: Spendful.com

Infinity Law Group — Sat, 27 Aug 2011 01:55:00 GMT

One of the causes of bankruptcy is that people get overwhelmed with spending more than they’re taking in – in other words, budgeting.

Spendful.com is a new site that helps you budget from month to month and best of all, it’s totally free! It’s intuitive and easy to use. The only challenge is you have to be committed to reporting what you spend truthfully and recording it with the site.

(via Divorce Discourse)

Does Chapter 13 bankruptcy look better on my credit record than a Chapter 7 bankruptcy?

Infinity Law Group — Wed, 06 Jul 2011 02:00:00 GMT

Some people may believe that a Chapter 13 bankruptcy will look better on their credit record. Many believe this to be the case because in a Chapter 13, the debtor is paying back some of their debt while in a Chapter 7 Bankruptcy the debtor is just wiping out their debt. However, a Chapter 13 bankruptcy actually may not look better on your credit record.

The reason a Chapter 13 won’t look better on your credit record is because a Chapter 7 bankruptcy is discharged much earlier than a Chapter 13 bankruptcy. A Chapter 7 bankruptcy may last for about four months while a Chapter 13 bankruptcy will exist for 3 to 5 years while one repays their debt. Therefore, a person filing for Chapter 7 bankruptcy will be able to re-establish their credit faster then someone filing for a Chapter 13 bankruptcy. A creditor will look at whether your bankruptcy is finished and with Chapter 13 bankruptcy, the discharge takes a lot longer than a Chapter 7.

Can I Incur New Debt During a Chapter 13?

Infinity Law Group — Sat, 02 Jul 2011 02:00:00 GMT

Generally you are not allowed to use any credit cards that you had when you filed for Chapter 13 Banktupcy. However, there are some instances when you can obtain credit for some specific need of yours. However, you will be required to contact your Chapter 13 Trustee regarding this as well as get permission from the court first.

You will need to file a motion with the court requesting permission that the court allow you to obtain a loan. If the new debt is found to be reasonable, then the bankruptcy court will allow for you to obtain this new debt. But only after a hearing and upon approval from the judge will you be allowed to incur additional debt in a Chapter 13 Bankruptcy.

What happens to my property that is not exempt?

Infinity Law Group — Thu, 30 Jun 2011 02:00:00 GMT

While Massachusetts has changed their Bankruptcy exemption to allow for more protection of debtors property, there is still the possibility that a debtor will have non-exempt property.

When you have filed for bankruptcy and you have property that exceeds your allowed exemptions, then you are giving up that property to the Trustee assigned to your bankruptcy case. Basically, the non-exempt property is being given to the Bankruptcy Court in order to pay off your debts. The money from these non-exempt properties will be used in order to pay your creditors. If the non-exempt property is money from say a bank account, then you just give that money to the Trustee. However, if the property is something such as a house or timeshare, then the property will be auctioned off and the money you get from the auction for that property will be used to pay off your creditors.

What will happen to my Co-Signer if I file for Bankruptcy?

Infinity Law Group — Fri, 27 May 2011 02:00:00 GMT

A co-signer is one who has signed his or her name along with the borrower and has agreed to pay the debt of another if the primary borrower is unable to. In many instances, a co-signer will be a family member or close friend. If you are a co-debtor and the borrower will be filing bankruptcy, it is important to find out what the debtor intends to do.

In a Chapter 7 bankruptcy, even if the debtor files for bankruptcy and is discharged from paying that debt, the co-signer will still be responsible for making payments on that debt.

In a Chapter 13 bankruptcy, the co-signer will be protected and will not be responsible for the debt so long as the primary borrower is keeping up with their payments according to the repayment plans terms.

If I Am Married, Can I File Bankruptcy By Myself?

Infinity Law Group — Sat, 21 May 2011 02:40:00 GMT

Yes, you will be able to file by yourself however, your spouse will still be liable for any joint debts. Also, if you file together you will be able to double your exemptions. If only one spouse has debts that they want to rid of, it may be advisable to only have one spouse file alone. It will really depend on your personal situation, who owns what and who owes what. In addition, another thing that must be considered is that if you have joint debts with your spouse, the fact that one spouse filed for bankruptcy and discharged their debt may show up on the other spouses credit report as well.

New Massachusetts Exemptions - Effective April 7, 2011

Infinity Law Group — Tue, 12 Apr 2011 02:05:00 GMT

On April 7, 2011, the Massachusetts governor signed a bill named “An Act Further Regulating Debt Collection” that has increased the personal property exemptions for residents of Massachusetts. By exemptions, this means the assets that cannot be touched by creditors or lost when one files for bankruptcy.

The Massachusetts exemptions had been extremely outdated previously. For example, these exemptions had allowed for the protection of 2 cows, 12 sheep, and 2 swine that clearly many of us today do not own. Now, the Massachusetts Legislature has finally updated the personal exemptions to better help debtors filing for bankruptcy.

Some changes that have been made are the exemptions for automobiles, which is now $7,500 rather than the $700 it used to be. The exemptions for money for utilities used to be $75 a month which may have been appropriate back in the day, but now with the new bill that has passed it is has changed to $500 each month. Tools for trade or business were not to exceed $500; this has now been changed to $5,000.

You can read all of the new exemptions at http://www.malegislature.gov/Bills/186/Senate/S2557.

While it may be better to choose some of the Massachusetts exemptions over the Federal Exemptions, this does not mean it will be the case for every debtor. Therefore, it is important to speak with a bankruptcy attorney who can help you make the best decision regarding your financial future.

Will medical debt owed to the hospital affect my credit?

Infinity Law Group — Wed, 06 Apr 2011 02:05:00 GMT

Yes, most hospitals will turn debt owed to them over to collection agencies. These agencies may report the debt to credit reporting agencies. If this occurs, your credit score will likely suffer. While bankruptcy may be one way to wipe out your debt, it may not be the right choice for someone who owes a manageable amount. If one is not high in debt, then they may just want to work out a payment plan. One way to pay your debt back and save your credit score is by contacting the hospitals billing department and working out some sort of payment plan with them in order to pay back what you owe. However, if you are overwhelmed with medical bills, bankruptcy may be the best solution for you.