Boston Personal Bankruptcy Consumers Review New Avoidance Program
We have seen a rise in the number of prospective Boston consumer bankruptcy clients that have been misled, misinformed and misguided by the debt settlement industry.
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Massachusetts Personal Bankruptcy Rate Slower than Nation
While Massachusetts bankruptcy filings were up in March, 15% higher than the same month last year, they are slightly lower than the prior month.
Read MoreBoston Bankruptcy Clients’ Severance Pay Exempt?
Severance pay verses unemployment compensation was the subject of a recent Chapter 7 decision in United Stated Bankruptcy Court by Judge Feeney.
Read MoreNew Federal Mortgage Relief Program for Massachusetts Consumers: Impacts on Bankruptcy
The Federal Housing Administration announced a new series of steps aimed to assist troubled homeowners. Our bankruptcy clients are likely to ask how qualifying for this program will affect their potential personal bankruptcy cases.
Read MoreProtecting 401(k) and IRA Monies from Creditors in Massachusetts
We are seeing more and more personal bankruptcy clients in Boston who have withdrawn monies from their 401k and IRA accounts prematurely and have paid the taxes and penalties. Unfortunately, many have used the monies to pay creditors and they still did not get a fresh start. Either the amount was insufficient or the creditors jacked up the interest rates anyways. They learn too late that the Bankruptcy code protects these retirement accounts. Yes, United States Code, Title 11, Chapter 5, Section 522(d) (10) (E) is a wonderful aid for those filing personal bankruptcy because it allows you to “exempt” all of those hard earned retirement savings.
Read MoreMassachusetts Bankruptcy Discharge for Willful and Malicious Conduct
In a recent decision by the Bankruptcy Court in Boston, Massachusetts, the court discussed the definition of “willful and malicious” conduct. The decision, In re: Abramowitz, Chapter 7 Case No. 08-42847, held that a debtor could discharge damages he owed to another party for property damage to that party’s trees.
Read MoreMassachusetts Bankruptcy Filings Up in March
April Fools Day brought in more than pranks and notions of springtime: the number of official federal bankruptcies was reported to have increased. There were over 158,000 bankruptcy filings in March, a rise of 35% over February, 2010. Chapter 7 personal bankruptcy numbers in Boston are not available as of this posting, but antidotal evidence is that the national numbers are consistent with local numbers. The numbers for March are considered to be the highest monthly filings since Congress overhauled the Federal Bankruptcy laws, effective October,2005.
Read MoreNew Massachusetts Median Income for Means Test
The U.S. Census Bureau’s Median Family Income figures changed on March 15, 2010. This means that anyone filing Chapter 7 bankruptcy in Massachusetts after March 15, 2010 will have to use the new Median Family Income for the Means Test.
Read MoreMassachusetts Bankruptcy Lawyers Given More Freedom to Advise Clients
In a case recently decided unanimously by the United States Supreme Court, Milavetz v. United States, and written by the new Justice, Sonia Sotomayor, it was decided that a new bankruptcy law may not restrict lawyers from giving full advice, including advice to take on more debt, to clients. The decision, while narrowly written, was made under the right to free speech. When clients see their personal bankruptcy lawyer they need “unfettered, candid advice” which may include taking on more debt through a mortgage or motor vehicle loan.
Read MoreMassachusetts Bankruptcies Up in February
Bankruptcies were up 14% in February across the United States verses February 2009, and 9% above January 2009, according to the National Bankruptcy Research Center data. The federal government statistics, which were released on March 2, 2010 for 2009, indicated 1,473,675 bankruptcy filings in 2009, a 31.9% rise in filings for 2009 over the previous year. Chapter 7 personal bankruptcies were up 41% (from 744,364 in 2008 to 1,050,832 in 2009) We will continue to inform our clients of the trends in the federal bankruptcy courts, and especially in the Massachusetts district.
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