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Boston Bankruptcy Law Update

The law for filing a Boston bankruptcy is clear in many respects. One important aspect is to complete the Boston bankruptcy petition and schedules accurately and honestly. Another important part of any Massachusetts bankruptcy case is to testify honestly at any and all hearings. For example, at all bankruptcy creditor hearings, also known as 341 hearings, debtors are sworn in and the Interim Trustee asks questions. Sometimes your lawyer will make a representation to the Trustee.

Bankruptcy Russian Style, Beats Massachusetts Bankruptcy?

To follow up with our comparative international bankruptcy tour, the Russian Economic Development Ministry has recently drafted an amendment to the bankruptcy laws allowing Russians to file for personal bankruptcy protection – so long as their debt exceeds 50,000 rubles (approximately $1,785) and they are unable to repay it within six months. The current law, which went into effect in 2009, has many similarities to United States, and Massachusetts’ personal bankruptcy law: the court will examine transactions that occurred within the past three (3) years to determine if they were “suspicious transactions” or preferential transactions.” The proposed law calls for a restructuring plan which may be similar to our Chapter 13 personal bankruptcy.

Assets You Keep in Massachusetts Bankruptcies

Filing for a personal bankruptcy in Massachusetts enables you to discharge your unsecured debt and keep all of your assets, up to the statutory maximum. A bankruptcy lawyer will explain to you what you can discharge and what you can keep. For example, in a recent article about keeping your tax refunds in bankruptcy we noted that proper planning enables our clients to keep those refunds. In addition, keeping your home in bankruptcy is even easier with a new Massachusetts homestead law. Further, consumers can keep most assets and rebuild FICO scores following bankruptcy in Massachusetts

Massachusetts Debtors Look to Canada

While US and Massachusetts personal bankruptcies were up in 2010, Canadian personal bankruptcies were down. The reduction was 16,704 people, or 11%. The reasons are likely to be because the Canadian economy is doing better and, because the Canadian government changed the bankruptcy rules, similar to the changes the US Congress made in 2005, making it more difficult to file for personal bankruptcy. We don’t understand it all down south here, but it has something do to with “surplus income” which is defined as income above a specific amount for a single person, and other amounts for families.

Massachusetts Personal Bankruptcies Up

According to a report earlier this month by the American Bankruptcy Institute, consumer bankruptcies are up so far this year. For example, there were 92,669 bankruptcies filed in January, however, there were 102,686 filed in February. Last year there were 5,847 Massachusetts bankruptcies filed in the first quarter.

Massachusetts Bankruptcy Consumers Beware

In a bizarre personal bankruptcy case back in 2001 in Louisiana, with ramifications for us here today, a lawyer and a judge conspired to commit fraud. This got the lawyer suspended and the federal judge convicted of a crime and removed from the bench! Apparently when federal judge Gabriel Thomas Porteous sought counsel from bankruptcy attorney Claude Lightfoot for debt relief under the bankruptcy act, Attorney Lightfoot concocted a plan to file the personal bankruptcy under the name “Ortous, G.T.” and then, the next day, amended the bankruptcy petition to “Gabriel Thomas Porteous,” in a rouse to avoid the judge’s name from going into the local newspaper. When asked, Attorney Lightfoot misled the Trustee in Bankruptcy, saying that the reason for the amendment was “typos.”

Medical Personal Bankruptcies in Massachusetts Up, They Say

Medical bankruptcies in Massachusetts are up despite the new Massachusetts health care law. In a study published in the American Journal of Medicine, three Harvard affiliated researchers conclude that the new Massachusetts Health Care law is resulting in more, not fewer, bankruptcies. The numbers, according to the researchers, are that as a percentage of all bankruptcies, “Massachusetts bankruptcies with a medical cause went from 59.3 percent to 52.9 percent,” however, the Harvard folks say this is a “non-significant decrease of 6.4 percentage points,” and then go on to point out that the total bankruptcies in Massachusetts (as everywhere since the Great Recession) is up, so, therefore, medical bankruptcies are up, too. The conclusions seem to be that folks are underinsured.

Keep Your Tax Refunds in Massachusetts Bankruptcies

When you file a Chapter 7 personal bankruptcy you can protect your tax refunds from the Bankruptcy Trustee! Many of our Massachusetts bankruptcy clients need to be counseled to fully declare the tax refund on the Petition and Schedules as the Bankruptcy Trustee is absolutely entitled to know about it. The next step is to claim the refund as exempt. Of course, the exemption is limited, but with proper planning, our clients can generally keep the refund.

New Massachusetts Homestead Act Effective March 16, 2011

As we reported late last year, there is a new Massachusetts Homestead law which goes into effect this week. The new law has the same citation as the old Homestead statute, Massachusetts General Laws, Chapter 188, and has a few key provisions that protect Massachusetts homeowners. The good news from a Massachusetts bankruptcy lawyer is that everyone will be protected with up to $125,000 of equity. Anyone who does not file a homestead with the Registry of Deeds will be protected up to that amount. Thus, it will apply to pre-existing debts, but not to pre-existing liens on the property.

Credit Card Interest Rates Ruled Too High by Massachusetts Judge

In a developing area of law, a Massachusetts Superior Court judge ruled that Citibank (South Dakota) was charging an unconscionable rate of interest against a Massachusetts credit card user. The Court pointed out that “the general public is drowning in credit card debt” and that “unregulated interest rates and hidden fees the credit card companies charge..make it impossible for consumers to get out from under these debts.” Notwithstanding the agreement or “contract” between the credit card issuer and the consumer, the Court noted the one “sided nature” of those credit card contracts.

Boston Bankruptcy Lawyer Blog

Category: Bankruptcy Issues