We have been practicing law in Boston and throughout Massachusetts since 1985. I have represented clients in District Courts, Superior Courts, the Appeals Court, Housing Court, Probate Courts, Federal Bankruptcy Court and the Federal District Court.
We have written on numerous occasions about Massachusetts Bankruptcy Court cases in which a bankruptcy discharge is not awarded by the Court because the Massachusetts debtor failed to include assets on his or her Petition and Schedules. We remind all of our clients to put in all assets, including, for example, real estate in another country, tools of the trade, and, of course, bank accounts.
Read MoreIn a recent study undertaken by professors at Columbia University, the University of Chicago, and Washington University in St. Louis, it was found that federal tax rebates caused a “significant, short-run increase” in personal bankruptcy filings, because folks had the cash to pay for the bankruptcy legal fees and the Bankruptcy Court fee of $306. They conclude that tax rebates afford folks the ability to “avoid delay” in bankruptcy filing.
Read MoreCurt Schilling, former ace pitcher for the Boston Red Sox, filed a Chapter 7 bankruptcy for his company, 38 Studios. Ok, let’s get some basics down first. A corporate chapter 7 bankruptcy is not the same as a personal chapter 7 bankruptcy. In a personal bankruptcy in Massachusetts, you list your personal assets (house, car, bank accounts) and liabilities (mortgages, car loans, credit card bills) and if you are unable to pay the liabilities based on your income and expenses, you can discharge your debts and get a fresh start.
Read MoreIn a case that came down from the Bankruptcy Court recently, Judge Hoffman’s decision should be a reminder to all Massachusetts bankruptcy petitioners that, first and foremost, you must be 100% honest on your Massachusetts bankruptcy petition and schedules. And, if the Trustee requests documents, or additional information, you must provide all reasonable information. If not, you are subject to a rejection of a discharge and perhaps much worse. In the case of Worcester resident and Chapter 7 petitorner, David Fontaine, the Trustee in Bankruptcy brought an adversary proceeding, in the bankruptcy court. The essence of the case was that the Trustee did not believe Mr. Fontaine was being honest in his Petition and Schedules; that his that he concealed financial information, that he mislead the Trustee, and that he lied in his testimony at the time of the hearing.
Read MoreMassachusetts bankruptcy clients often ask us if we can help them to get a lender to refinance their homes. They say that if they can discharge their credit card debts, and refinance their mortgages, they would be fine, financially. We can get most folks a bankruptcy discharge, however, we can’t usually help with refinancing; that’s up to their current lender, or finding a new lender. Of course, going through a Massachusetts bankruptcy and refinancing is not easy to do anymore. Except if you can find a program like SUN.
Read MoreWhile the statistics from the United States Bankruptcy Courts are encouraging, it is not completely clear if the number of personal bankruptcies are down because there is less financial distress, or, because the folks that have not filed, but need to file, are simply unable to file for a discharge in Massachusetts bankruptcy because they simply can’t afford it.
Read MoreAs a Massachusetts bankruptcy attorney, we get calls from clients and potential clients with mortgage questions all the time. Calls from folks who are refinancing in Massachusetts are perhaps the most common these days, but so are calls from folks who are buying their first house, including rental properties. Thus, we try to keep Massachusetts consumers apprised of new developments coming out of Washington or the Massachusetts State House. Fortunately, there is some good news in the name of public disclosures for consumer protection.
Read MoreOn the Massachusetts bankruptcy form there is a whole section regarding the Statement of Intention with respect to secured debts. Secured debts are debts that are secured by the “thing” they financed. This typically includes homes and cars.
Read MoreAs a Massachusetts bankruptcy attorney, I have reported on student loans on numerous occasions in our bostonbankruptcylawyerblog.com. Mostly, we have reported that student loans, because they are subsidized by the federal government, have been carved out of the almost unlimited list of debts that can be discharged. The law requires “undue hardship” before a student loan can be discharged which essentially means that you must be permanently disabled. Our May 2, 2011 Massachusetts bankruptcy blog gives more information on how to work within the system when you have student loan debt that is not dischargable.
Read MoreOne option for folks filing a Massachusetts bankruptcy who have slightly too much cash is to consider putting money into a retirement account. This is a legitimate way to protect your assets, as the bankruptcy laws allow you to have significant assets in such things as a home, under the Massachusetts Homestead Act, and ERISA protected retirement accounts.
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