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Frequently Asked Questions

Massachusetts Bankruptcy Firm Provides Answers!

At Glenn F. Russell, Jr. & Associates, P.C., our legal team wants to educated you about the Massachusetts bankruptcy process, so you can make informed decisions. Our goal is to make you comfortable with every action that is being taken, so you can have peace of mind about your financial situation. If you have further questions, don't hesitate to ask our bankruptcy attorney by calling our Fall River office or submitting an online case evaluation form.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy is used by individuals who are unable to mend their financial situation because they do not have enough assets or income. It is often called liquidation bankruptcy because the debtor's property is sold for cash by the trustee. Chapter 7 will allow debtor's financial debts to be discharged in a timely manner, but it is only available to persons who fall below a certain income level.

Chapter 13 bankruptcy is used for individuals who are able to repay their debts in a reasonable time period. The debtor will come up with a repayment plan for the next few years, so that the creditors can receive part of their debts. After the payment plan is complete, the rest of the debt will be discharged. While repaying the debt, the debtor will be under the court's protection and creditors may not adjust the plan.

Will bankruptcy get rid of all of my debts?

Bankruptcy may allow you to get rid of all of your unsecured debts, which are debts that are not backed up by collateral. These include credit cards, medical bills, and personal loans. If you are wondering what types of debt that you cannot get rid of in bankruptcy, then review the following types of debt that may not be eliminated by bankruptcy:

  • Secured debt
  • Child support and alimony
  • Tax debt
  • Student Loans
  • Bankruptcy filing fees

How do I choose the right type of bankruptcy?

If you are eligible to pursue Chapter 7 bankruptcy, then you have an option of which bankruptcy chapter to file. There are advantages and disadvantages to both types of bankruptcy.

Advantages of Chapter 7

  • Your debts will be eliminated more quickly
  • You don't have to worry about monthly payments
  • Your future income is not counted
  • Your credit score can recover faster

Advantages of Chapter 13

  • You can retain more of your property
  • Non-dischargeable debts in Chapter 7 can be reduced in Chapter 13
  • Your wages may not be garnished
  • Foreclosure on your home can be deferred

Disadvantages of Chapter 7

  • You will lose any non-exempt assets
  • You will still be responsible for paying any non-dischargeable debt
  • You can't restructure any remaining debt

Disadvantages of Chapter 13

  • Repayment period lasts for a long time
  • Credit score is poor for a longer period of time
  • Costs of bankruptcy may be higher

Talk more with our Massachusetts bankruptcy attorney to discuss which chapter would be best for you. Glenn F. Russell, Jr. & Associates, P.C. can analyze your situation and advise you on the best course of action to take.

Schedule an Appointment for Your Initial Consultation

If you are thinking about filing for bankruptcy in Massachusetts, then you need legal counsel that you can trust. Attorney Glenn F. Russell Jr. has assisted countless clients with complex bankruptcy cases and he can assist you as well! Call the office or submit an online case evaluation form to get started, before it's too late!