Massachusetts Bankruptcy For Legal Help
Added: (Fri Aug 07 2009)
Pressbox (Press Release) -
Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13. However, some of your creditors may have a "security interest" in your home, automobile or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. Bankruptcy does not make these security interests go away. If you don't make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case. There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full, or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt. If you put up your household goods as collateral for a loan (other than a loan to purchase the goods), you can usually keep your property without making any more payments on that debt.
In most bankruptcy cases, you only have to go to a proceeding called the "meeting of creditors" a.k.a. “ 341 meeting” to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.
Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney.
Before the bankruptcy can be filed, the client has to take a “credit counseling” course and obtain the “certificate of credit counseling”. This takes about an hour and can be done over the telephone or over the internet. Our office can provide a list of credit counseling agencies.
Before the bankruptcy is concluded, each person must take a “financial management” course that will assist the client in future financial planning and money management. Our office can provide a list of the agencies that provide this service.
When you receive a “discharge” of your debts from the bankruptcy court, that means your case is concluded and you can begin to enjoy a fresh start in your financial life. Second chances are a big part of what America was built on and still remains as strong tradition in the United States. At this time, you will have an opportunity to begin building for your more secure financial future, including saving money and rebuilding your credit.
After your bankruptcy is concluded, you may want to repair and rebuild your credit. The biggest thing that you can do to rebuild and repair your credit is to pay your remaining bills on time. This would include paying your mortgage or rent on time, paying your car, phone, electric and other utility bills on time, all of which can contribute toward rebuilding your credit.
Another option you may have, is to get a “secured” credit card. This is a credit card issued to you by a bank, where you send them up-front, how much money you want for a line of credit. You make charges on the card and get a bill, just like a regular credit card. You pay the bill on time every month and after making several payments on time, you can ask the bank to turn that credit card into a regular, unsecured credit card. Doing this can help you rebuild a positive credit history. This process does not happen overnight, but if you are taking steps in the right direction, your credit will improve over time. One of the biggest benefits going in your favor, is that new credit card companies and lenders will know you have concluded a bankruptcy and essentially have no more debt, so you are viewed by them as a person with little or no more debt, which is a good thing.
For more details log on :: http://www.massachusettsbankruptcycenter.com
Waterfront Lawyers Building
236 Commercial Street
Boston, MA 02109, USA
Tel (617) 720-1101
Fax (617) 720-1104