If your debts are mounting, a bankruptcy attorney in Springfield MA may be able to assist you. Bankruptcy helps people to discharge or restructure their debts, including credit card debts, mortgage debts, and car loans. However, prior to filing for bankruptcy, it is important for you to understand how the bankruptcy process works and the bankruptcy laws involved. A bankruptcy attorney in Springfield MA will be able to explain your legal options and can help you to determine which type of bankruptcy best suits your individual situation.
Under United States bankruptcy law, there are two forms of personal bankruptcy: Chapter 7 and Chapter 13. Your bankruptcy attorney in Hampden County will be able to recommend one of these processes, depending upon your financial assets and personal goals.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy will allow you to discharge or eliminate most of your debt. However, it is important to note that some debts, including student loans, most tax obligations, and child support and alimony, may not be discharged in bankruptcy. It is also important to understand that there are certain disadvantages to Chapter 7 bankruptcy filings. In order to file for Chapter 7, you must first demonstrate that you are financially unable to pay your debts. Most of your property and assets will then be sold off in order to pay your creditors.
During these proceedings, you will retain your right to your public benefits and pensions. However, the bankruptcy trustee may confiscate most of your personal property and assets.
The entire Chapter 7 bankruptcy process takes about 3 or 4 months to complete.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is different from Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, your debt is reorganized and a payment plan is established. Consequently, you are allowed to keep your house, motor vehicles, personal property, and other assets. You must, however, pay your creditors the value of your non-exempt assets over a period of three to five years and make monthly payments to the bankruptcy trustee during this time.
A Chapter 13 bankruptcy releases less debt than a Chapter 7 bankruptcy. In order to qualify for a Chapter 13 bankruptcy, you must show that you can repay your outstanding debts.
A Chapter 13 bankruptcy may be in your best interest if you are in foreclosure or have unpaid tax bills piling up. A bankruptcy attorney in Hampden County may be able to help you evaluate your finances and understand all of your legal options.
Choosing Between Chapter 7 and Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcies both have pros and cons. Before you file for bankruptcy, it is essential that you understand how each type of bankruptcy could potentially impact your personal goals and finances. You must meet the Chapter 7 means test in order to qualify for a Chapter 7 bankruptcy. However, if your monthly disposable income exceeds the means test threshold, you can only file for a Chapter 13 bankruptcy.
A Chapter 7 bankruptcy is a quicker and less expensive process. However, it is more difficult to retain homes, personal property, and other assets, following a Chapter 7 bankruptcy. Although a Chapter 13 bankruptcy takes longer and is a more expensive process, you can still participate in a mortgage modification program. This program would stop foreclosure proceedings on your home. Moreover, under a Chapter 13 bankruptcy, you are not required to surrender your nonexempt assets.
A knowledgeable and skilled bankruptcy attorney in Hampden County can help you to decide which form of bankruptcy is the best match for you. An experienced attorney will be able to thoroughly examine your finances and craft a bankruptcy strategy that meets both your personal goals and your financial needs. A lawyer’s guidance can also help to streamline the process and give you peace of mind over the entire bankruptcy process.
A Bankruptcy Attorney in Springfield MA Can Help
If you are considering filing for a Chapter 7 or Chapter 13 bankruptcy, schedule an appointment to speak with a bankruptcy attorney in Springfield MA. It is important to note that you always have legal options when faced with bankruptcy, and a knowledgeable lawyer can help you explore those options. The Law Office of Eric Kornblum can assist you with restructuring your finances or discharging your debts, helping you to recover financially.