Many of our Massachusetts bankruptcy clients ask how much will a chapter 7 bankruptcy harm their credit score.  Will it really stay on my credit report for ten years?  Will I be unable to get credit during that time?

While the fact that you filed for personal bankruptcy may stay on your credit report for a decade, it should matter less and less to your score as time goes on.  This is because your credit score is a function of your recent credit history, not your ancient credit history. Read more

Readers of our blog know that bankruptcy fraud seems to get detected, prosecuted and results in no discharge of your debt.  So why does it continue?  We don’t know, but here’s a story that takes place in the southwest involving a fake corporation, collusion with a relative and, of course, jail time for the perpetrator.
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While it is not the situation anyone wants to be in, there comes a time for many folks that you need to retain a Massachusetts bankruptcy lawyer.  How do you do it?  A client who moved to Hawaii called me this week, asking if I could represent him.  I couldn’t, because the cab fare would be pretty high, but I could give him advice as to how pick a competent bankruptcy lawyer. Read more

We have written about bankruptcy fraud, Chapter 7 fraud, and filing bankruptcy petitions with misinformation or fraudulent information in the past.  The federal bankruptcy court is likely to find out.  The United States Attorney’s office is likely to investigate and prosecute.  It’s simply wrong.

When you complete a bankruptcy petition and schedules, and sign them under the pains and penalties of perjury, the federal Bankruptcy Court takes your oath very seriously.   There can’t be any mistakes or misleading information.  The federal government has vast resources and if they discover fraud, they will investigate. Read more

“Credit” from the Latin credere means “to trust.”  It is unquestionable that your credit score is critical these days.  Employers are increasingly requiring permission to secure your credit score before hiring, landlords are using scores to keep low and moderate people out of units, and what you ultimately pay for a car or a home is a function of your credit score as a lower score may result in higher interest rates.

Filing for Chapter 7, or personal bankruptcy, will have a negative effect on your credit score.  Are there any numbers or rules of thumb about credit scores?
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We’re not advocating for any candidate…and there are no Massachusetts bankruptcy ballot initiative. So we thought we’d take this timely opportunity to point out that after a bankruptcy you can do (almost) anything. Even run for office.

Take Wilbraham Selectman Robert (Bob) W. Russell, for example. He’s running for the State Senate notwithstanding a federal chapter 7 bankruptcy he filed, and resolved in 2013. The seat he is running for covers Wilbraham, and parts of Springfield and East Longmeadow. Read more

Yes.  Debtors can file a motion at the time they file their Bankruptcy Petition and Schedules, to waive the filing fee.  The Court will review the Motion to Waive Filing Fees and respond with their opinion in a timely basis. Read more

It is axiomatic that any and all information requested by the United States Bankruptcy Court on the Chapter 7 Petition be complete, accurate and up to date.  Folks filing for bankruptcy protection are given a discharge based on that truthful information.  Therefore, if material information is not disclosed, the debtor can be subjected to significant penalties. Read more

Once you decide to file for bankruptcy, you can stop paying your creditors.  However, this general rule only applies to debts that you can legitimately discharge in bankruptcy.  Thus, you can stop paying your credit card bills, but not the mortgage on the home you intend to live in, the car you intend to keep, and student loans.

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The Massachusetts bankruptcy law now allows personal residences held in a trust to be protected under the Massachusetts Homestead statute.  It is important to note that the law gives $125,000 in protection to all residents, with or without filing a Homestead in the Registry of Deeds.  The law gives $500,000 in protection to properly filed Homesteads.  This 2011 law, as it affects trusts, is now being reviewed and challenged in various ways. Read more