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Facing financial hardships can be one of the scariest times in a person’s life.  Watching your life become more and more unbalanced can be a very frightening experience.  It is important to learn your legal rights and options in such circumstances.  After all, knowledge is power, and in this case can actually help you to regain control of your life.  In many cases, bankruptcy is the best way to reset your finances.  Attorney Neil Berman from Somerville, Massachusetts will be glad to help you decide if bankruptcy is right for you.  There are several different types of bankruptcy.  Let’s look over a couple of them.


Chapter 7 Bankruptcy


Chapter 7 bankruptcy is the quickest and simplest way to file.  In most cases, those who file chapter 7 bankruptcy keep all of their property, as all their property can be protected pursuant to the Bankruptcy code, rarely when handled properly does a bankruptcy result in property being sold.  This type of bankruptcy usually discharges such debts as credit card bills and medical bills.  There is no limit to the amount of debt that you can discharge with a chapter 7 bankruptcy, and no minimum amount of debt.  In most cases, a chapter 7 case lasts less than 6 months.


Creditors cannot touch any wages or property that you receive after the filing date of a chapter 7 which results in discharge, and all of the harassing phone calls and letters must stop once a chapter 7 has been filed.  In most cases Child support, back taxes, car payments, mortgages, student loans, and spousal support are not discharged in a Chapter 7 bankruptcy, however there are some exceptions.

Chapter 13


Chapter 13 bankruptcy is also known as a repayment plan filing.  With this form of bankruptcy, all of your assets can be protected from creditors while you work on a plan to repay your debt.  With this plan, you will have a longer period of time to get the debts paid off…usually from 3 to 5 years.  Some of the debts can even be reduced to help lower the payments.  With chapter 13 bankruptcy, you can basically reorganize your payment schedule into a manageable plan that you can afford.  All law suits and foreclosures are stopped when one files chapter 13, and many people use this option to catch up on their mortgage and save their home.


There are some limits to filing chapter 13.  You must have a stable income, and there must be some money left over after paying your living expenses.  Currently you can have no more than $1,149,525 in secured debt, and $383,175 in unsecured debt, these figures are adjusted every 3 years.  You must offer a repayment plan for 3 to 5 years and it must cover all priority claims in full.  Creditors, as well as the trustee, do have the right to object to the plan if it is unreasonable.  Once all of the payments have been made in the Chapter 13 plan, all other debts will be discharged.


If you are considering filing bankruptcy, Attorney Neil Berman can help you decided the best course of action in your situation.  Serving all of Massachusetts, Attorney Berman is available to help you get back on your feet.  Whatever your situation and issues, Attorney Neil Berman has the experience and skill required to help determine the best course of action for your case.

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Phone: 617-628-1563


Commonsense Legal Counseling's website and its associated pages contain general information and resources about the legal services that we provide. The contents are not intended to be taken as legal advice and should not be used to make decisions affecting your legal rights