Bankruptcy

Boston Bankruptcy Lawyer

Some of the leading causes of personal bankruptcy are divorce, job loss, and unexpected medical bills. For most people the decision to file for Chapter 7 or Chapter 13 bankruptcy is generally difficult. The Law Offices of David B. Feldman, in Boston, Massachusetts, has helped numerous clients file for Chapter 7 and Chapter 13 bankruptcy matters so that could move forward with their lives.

What is bankruptcy?

Bankruptcy is primarily based upon Federal law and is a right guaranteed by Article 1, Section 8 clause 4 of the United States Constitution. Bankruptcy is a legal proceeding filed in federal court, usually by a debtor, seeking relief as provided by the Bankruptcy Code, to either discharge or reorganize their debts and to stop mortgage foreclosures, eviction proceedings and proceedings in state court to collect money from the debtor by creditors by means of attachments, garnishment and executions.

There are two types of personal or consumer bankruptcy proceedings filed by individuals. The first type is liquidation under Chapter 7. It is called liquidation because any of the debtor’s assets that are not exempt are liquidated and the proceeds are used to pay their creditors. The second type is a reorganization of the debtor’s financial affairs under Chapter 13, where a debtor usually with the assistance of an experienced, professional attorney, files a proposed plan with the court to pay back a portion of the money they owe over three or five years.

How can bankruptcy help me?

From the point of view of the individual who finds themselves in the midst of a seemingly hopeless financial crisis, probably the most important provision of the Bankruptcy Code are the automatic stay provisions. Filing for bankruptcy immediately triggers the automatic stay provisions of the Bankruptcy Code which is most often used to stop mortgage foreclosures, eviction proceedings, and proceedings in state court to collect money from the debtor by creditors by means of attachments, garnishment and executions.

Probably the best known benefit of bankruptcy is the ability to eliminate debts (Chapter 7) or to put in effect a personal financial reorganization (Chapter 13) which allows the debtor to pay back a portion of what they owe over a period of years.

The decision as to whether bankruptcy is the right course of action for you, and if it is, which Chapter to file under is best made after a confidential consultation with an experienced, professional attorney.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the new law)

Many people have questions about the “new” bankruptcy law, officially called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which went into effect on October 17, 2005. They wonder how it will affect them if they find themselves in a situation where bankruptcy becomes their only reasonable course of action given their financial circumstances. The “new” bankruptcy law will not as some people have erroneously assumed “prevent” anybody from filing, although it does change some of the time periods in which relief may be available.

From the point of view of the individual who is contemplating filing a personal consumer bankruptcy, the major change with the new law is the means test for Chapter 7 eligibility. Under the means test, a debtor may not be eligible for Chapter 7 eligibility if the debtor’s income is greater than the state median income based on U.S. Census Bureau statistics. U.S. Census Bureau statistics currently set the median household income in Massachusetts as $85,157.00 for a family of four.

Is bankruptcy right for me?

Whatever the cause, most people who find themselves considering filing for personal bankruptcy are overwhelmed by crushing debt and their health has suffered as the result of the constant stress of harassing telephone calls from creditors, yet they hesitate to seek legal advice out of unnecessary fear and embarrassment.

If you have seriously tried (often many times) to regain control over your financial affairs and have failed in spite of your best efforts to reduce spending and to pay off your debts, you owe it to yourself and you family to seek advice from an experienced, professional attorney as to how best to balance the needs of you family for the basics and the demands of your creditors.

Only an experienced attorney can properly advise you as whether bankruptcy is the right course of action, taking into account your specific individual situation. Here at the Law Offices of David B. Feldman, P.C., I offer sound, practical, advice as to whether bankruptcy is the right solution for you. Contact my office today to make an appointment for a free, confidential initial consultation to help you find a way to get out from under crushing debt.

Contact a Skilled Bankruptcy Lawyer

If you considering filing for Chapter 7 bankruptcy or Chapter 13 Bankruptcy, please contact the Boston bankruptcy attorney at Law Offices of David B. Feldman for a free initial consultation. I can be reached by phone at (617) 227-0290, by e-mail, or by filling out the intake form on the Contact Us page.