No. There is no minimum amount of debt to qualify for bankruptcy. However, certain debt limits apply to Chapter 13 bankruptcy. The maximum amount changes periodically, but is currently $1,257,850 in secured debt (such as a mortgage) and $419,275 in unsecured debt. It is also important to keep in mind that there are limits on how many times you can discharge your debts in bankruptcy. 

Possibly. Most, if not all, consumer debt can be eliminated through a bankruptcy discharge. However, there are categories of debt that are considered “non-dischargeable," including many tax debts, child support, alimony, fines or penalties owed to the government, criminal restitution, condo fees.  It's important to make sure you know whether any of your debts won't be covered and put plans in place to deal with them.

A Chapter 7 bankruptcy follows a fairly short timeline – you could potentially receive your discharge in a few months. Chapter 13 involves a repayment plan, and the process lasts between three to five years.

There is no simple answer to this question, since everyone’s circumstances and needs are different.  That said, our office typically charges a legal fee ranging between $800 and $2,000 for a standard Chapter 7 bankruptcy and between $2,500 and $5,000 for an average Chapter 13 bankruptcy.  In addition, there is the court’s filing fee ($338 for a Chapter 7, $313 for a Chapter 13) and a fee for the credit counseling requirement, which typically ranges between $30 and $40. These are very general parameters; Chapter 13 cases, in particular, can incur additional fees and expenses, depending on their course.  

We recognize that if you are contemplating bankruptcy, you are likely wondering how you can  possibly afford to pay an attorney.  We have been retained by thousands of Massachusetts residents who found themselves in financial straits.  We have suggestions and are open to various options.  

As with any services, you may be quoted a wide range of fees from a variety of lawyers.  Given our expertise and focus on bankruptcy, we feel our fees are competitive.  We encourage you to contact us to discuss your particular situation.

It is certainly possible for an individual to file for bankruptcy without a lawyer.  However, the rules and procedures governing the bankruptcy discharge process are complex, and it can therefore be very beneficial to hire an attorney with experience in bankruptcy law.  Debtors who decide to proceed without a lawyer are responsible for knowing how the relevant bankruptcy laws and local court procedures apply to them.  Your case can be subject to dismissal for failure to comply with these or other requirements. Chapter 13 cases in particular are likely to involve complexities that necessitate the involvement of an attorney.

No. While filing for bankruptcy does affect your credit, and while the fact that you filed for bankruptcy will appear on your credit report for up to 10 years in the case of a Chapter 7 filing and 7 years in the case of a Chapter 13 filing, you start rebuilding your credit from the day the court issues your Order of Discharge.  Most people with poor credit who file for bankruptcy see their credit scores increase compared to people with poor credit who remain in debt.

No.  Under the Bankruptcy Code you are allowed to hold onto a certain amount of assets and personal property.  It is not designed to leave you destitute.  Most of our clients do not lose any belongings. Assets are handled on a case-by-case basis; if there are any non-exempt assets or fact-specific issues, an experienced attorney will be able to identify these prior to filing and work them out with the creditor or trustee over the course of the case.

No. Debtors cannot pick and choose what debts they want to have discharged. You must list all debts and everyone to whom you owe money.  All unsecured debts will be discharged, and you will have the ability to elect what your intentions are with secured debts, such as a car loan or mortgage.

Yes. Many people qualify for loans and purchase homes after a bankruptcy filing. How quickly you are able to purchase a home and qualify for a loan is up to the discretion of the lender. Various factors come into play, but from what we have seen, people may qualify for a conventional mortgage loan approximately 4 years after filing.

Not necessarily. Just because a couple is legally married does not mean that they both have to file. If the debts are in only one spouse’s name, that spouse can file an individual case.  However, a non-filing spouse is required to provide documentation of the income they bring to the household, unless the couple is separated and living under separate households. Additionally, there are times when it may be better for both spouses to file to get the full benefits of bankruptcy and discharge of debts.

The short answer is that if your debts are separate, your spouse’s credit will not be affected by your filing.  The credit reporting bureaus generally link their files to individuals’ Social Security numbers.  The bankruptcy filing will appear on your credit report, but should not appear on your spouse’s. If a non-filing spouse receives an adverse rating on their credit score as a result of their spouse’s bankruptcy, the matter should be addressed immediately with the credit reporting agencies. A non-filing spouse should not have their credit damaged as a result of their spouse filing for bankruptcy.

That said, this doesn't mean your bankruptcy won't affect your spouse in any way.  If you are co- debtors on an account and you receive a bankruptcy discharge, the creditor may look to your non-filing spouse for payment.  Also, for a while your bankruptcy filing may affect your ability to obtain a joint loan with good terms. But, as you rebuild your credit score, your ability to get loans on favorable terms will increase as well.

You are not required by law to inform your employer if you file for bankruptcy. In fact, it is rare for employers to find out this information.  In Massachusetts it most commonly happens if your wages were previously being garnished and your employer has to be notified to stop the wage garnishment because a bankruptcy case was filed.

Even if your employer finds out about your bankruptcy filing, they cannot fire you or change the conditions of your employment for that reason alone. That's because federal law prohibits both government and private-sector employers from discriminating against employees who have filed for bankruptcy protection.  

However, while private-sector employees are not allowed to fire you because of your debtor status under current law, they can take it into consideration when making hiring decisions. (Private-sector employers can also refuse to hire you if you don't give permission for them to check your credit history.) Most employers are not going to base their hiring decision on your credit alone unless it is directly related to the work you would be doing, such as financial services or accounting. More often, it is one factor that is considered among many, including your work history, skills, and how well you interview.

If the issue does come up during the application or interview process, it's best to be open and forthcoming about the experience and frame it as something from which you have learned. Many, many Americans have bad credit or face serious credit card, medical, or student loan debt. This isn't something you need to be ashamed of when applying for a new job.

Filing for bankruptcy can halt most civil lawsuits.  When a debtor files a case, an order called the automatic stay prevents creditors from continuing any collection activity, including attempting to win a money judgment in a lawsuit. Freezing the collection action gives the bankruptcy court time to sort out the available assets and divide them appropriately among the creditors.

Bankruptcy doesn't help people avoid all legal actions. Matters that will continue despite a bankruptcy case include:

• criminal cases;

• divorce and dissolution actions;

• child custody and support cases.

Most other lawsuits will be stopped by the automatic stay.

Filing for Chapter 7 or Chapter 13 bankruptcy initiates an automatic stay, which mandates that most creditors cease all collection activities. Once the stay is in place, creditors and collection agencies must stop contacting you by phone and mail, and cannot file or maintain lawsuits against you to recover most outstanding debts. They are also prohibited from filing liens against you or garnishing your wages.

You will be able to keep your home in a Chapter 7 bankruptcy filed in Massachusetts if you have under $500,000 in equity in your home and have recorded a Declaration of Homestead prior to filing for bankruptcy. 

Yes. Debts that can be discharged in bankruptcy, such as credit card debt, should not be paid once an informed decision is made to file a bankruptcy petition. Monthly living expenses such as rent, mortgage payments, telephone bills, and utility bills, must be paid.