Bankruptcy Lawyers in Massachusetts

Bankruptcy in Massachusetts

Bankruptcy in Massachusetts provides individuals and businesses a legal way to address overwhelming debt. The state's bankruptcy courts handle cases filed under Chapters 7, 11, and 13 of the U.S. Bankruptcy Code. Chapter 7, often called liquidation bankruptcy, allows for the discharge of unsecured debts, with some exceptions. Chapter 13 involves a repayment plan, enabling debtors to keep their property while repaying a portion of their debts over time. Massachusetts also offers Chapter 11 for businesses seeking to reorganize their debts. Filing for bankruptcy in Massachusetts requires a detailed understanding of both federal and state-specific exemptions. These exemptions determine what assets a debtor can keep. Massachusetts allows you to choose between federal and state exemptions, with the latter offering protections for certain assets like your home, under the state's homestead exemption. The bankruptcy process begins with credit counseling from an approved agency, followed by the filing of a petition with the bankruptcy court. Debtors must then attend a meeting of creditors, where they answer questions about their finances and the bankruptcy petition. The entire process can take several months, depending on the chapter filed. Bankruptcy can be a complex process, and it is often beneficial to consult with a lawyer specializing in bankruptcy law to navigate the specific requirements and implications in Massachusetts.

Massachusetts Laws & Regulations

Massachusetts bankruptcy law includes specific provisions and exemptions that can impact a debtor's case. One significant state-specific law is the Massachusetts homestead exemption, which protects up to $500,000 of equity in a primary residence from creditors. This exemption is crucial for homeowners considering bankruptcy. In addition to the homestead exemption, Massachusetts law allows for other personal property exemptions, including protections for motor vehicles, tools of the trade, and certain retirement accounts. Debtors must carefully evaluate whether to use federal or state exemptions, as this decision can significantly affect the outcome of their case. Massachusetts courts also require debtors to complete a means test to qualify for Chapter 7 bankruptcy. This test compares the debtor's income to the state median income to determine eligibility. If the debtor's income is above the median, they may need to file for Chapter 13 instead.

Typical Attorney Costs in Massachusetts

Massachusetts Bar Association

How to Find a Bankruptcy Lawyer in Massachusetts

Finding a bankruptcy lawyer in Massachusetts involves researching attorneys with experience in bankruptcy law. Start by visiting the Massachusetts Bar Association's website to use their lawyer referral service. This tool can help you find qualified lawyers based on your specific needs and location. Additionally, consider consulting with multiple attorneys to discuss your case and evaluate their approach. Look for lawyers with a proven track record in bankruptcy cases similar to yours. Personal recommendations from friends or family who have undergone bankruptcy can also be valuable.

Frequently Asked Questions