Boston Bankruptcy Lawyer Blog

Our personal bankruptcy clients often point out that they are being "harassed" by the collection agencies and lawyers, in Boston and throughout Massachusetts. One Boston area law firm uses the brother of the attorney as their attack dog - he implies he is the lawyer and his words are vicious.

Thus, it is important for consumers to know their rights. The Federal Fair Debt Collection Practices Act protects consumers from abuse by collection agencies and collection lawyers. Note, the federal law does not apply to the actual creditor, only to "third parties" such as the collection agencies and collection attorneys. The Massachusetts law, Chapter 93A, Section 49, Debt Collection in an Unfair, Deceptive or Unreasonable Manner gives Massachusetts consumers additional protections.

Continue reading "Massachusetts Consumers Need to Know Fair Debt Collection Laws" »

Banker and Tradesman, a publication of the Warren Group published their bankruptcy statistics noting that Chapter 7 Personal Bankruptcies were up 33% in 2009. This is not news to readers of this blog or our website.

What is news, however, is that Banker and Tradesman acknowledges that Massachusetts is different. While all states have folks filing bankruptcy following layoffs and business declines, we don't have the medical bankruptcy rate that other states appear have. Instead we have seen an increase in the number of clients sensitive to huge interest rate hikes by the credit card companies.

What we have seen, I explained to Banker and Tradesman, is an increased number of clients who actually could pay their credit card debt. However, when the creditors unexpectedly increased the interest rates -- that pushed them over the edge: they see no way they can ever make the payments. When they file for bankruptcy, they get a fresh start, but they were not headed in that direction before the interest rate increases.

In Canada, a recent article by a bankruptcy trustee, found the same results.

Some of our clients have significant gambling debt when they come to us for advice regarding discharging debt in Massachusetts Bankruptcy Court in Boston.

Some research showed that approximately 10% of all personal bankruptcy filings are linked to gambling debt; and that 20% of "compulsive" gamblers ultimately file for bankruptcy protection.

Continue reading "Massachusetts Bankruptcy and Discharge in Boston Bankruptcy Court" »

Clients and potential clients in Massachusetts sometimes ask us if filing for a Chapter 7 Personal Bankruptcy will have any adverse effect on their current or future student loans. The answer is fairly clear: no. In 1978, Congress passed a law which prevented various types of discrimination against folks who filed for bankruptcy protection. With respect to denying student loans, the law states that a governmental unit "may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act."

Continue reading "Can Universities in Boston or Massachusetts Discriminate Against Bankruptcy Filers?" »

According to initial numbers posted by the National Bankruptcy Research Center, there were over 1,410,000 personal bankruptcies filed in 2009. The total is up 32% from 2008. We have found that the number of clients qualifying for Chapter 7 personal bankruptcy, in which you discharge all of your unsecured and non priority debt has increased as well. The number of personal bankruptcies are the highest since the new, stricter, bankruptcy law went into effect in October, 2005.

Continue reading "Bankruptcy Numbers Up in Boston and Across Massachusetts" »

Clients and potential clients in Massachusetts sometimes ask us if filing for a Chapter 7 Personal Bankruptcy will have any adverse effect on their employment status. The answer is fairly clear: no.

In 1978, Congress passed a law which prevented various types of discrimination against folks who filed for bankruptcy protection. With respect to denying employment, that law states that an employer cannot "deny employment to, terminate the employment of, or discriminate with respect to employment against" anyone simply because he or she has filed for personal bankruptcy.

Continue reading "Can Massachusetts Employers Fire You for Filing for Bankruptcy?" »

While end of year statistics are not yet in, the good news for our Massachusetts clients is that the number of foreclosures is trending down. There were 27.3% fewer foreclosures through October 2009 (7,707) than the same period a year earlier (10,603). The auction numbers were down 9.8% for that time period. Statistics just out from Banker and Tradesman shows that November foreclosures are down as well.

Another good statistic is that the number of actual foreclosure deeds, which represents foreclosures that conclude (the property is not reclaimed by the owner) is also down significantly: 26.8% for the first 11 months of 2009.

Continue reading "Massachusetts Foreclosures Trending Down" »