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.
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.
Read MoreIn 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.”
Read MoreMedical 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.
Read MoreWhen 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.
Read MoreAs 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.
Read MoreWith two million homes in foreclosure nationally, and another 2.2 million homes defined as at risk of foreclosure, a proposal being discussed in Washington this week seeks to help homeowners with new rules and regulations. Apparently Elizabeth Warren, the head of the newly established Federal Consumer Financial Bureau, is taking the lead on this program, which is backed by the Department of Justice, the Federal Trade Commission and Housing and Urban development. The perspective of a Massachusetts bankruptcy lawyer might be that this could help many families who want to save their home and could, with a modified mortgage. Supporters of the proposals say they would be fair and they would stabilize the housing market and countless neighborhoods.
Read MoreHave you received a Summons to appear in court because of outstanding debt? Credit card companies often resort to suing consumers in Massachusetts District Courts for the unpaid balances. While it may be too expensive to retain a Boston attorney, and you may not qualify or be interested in a Massachusetts bankruptcy, there are ways to defend yourself. The Massachusetts Courts Self Help Center is a helpful start, but we have some advice to offer, too.
Read MoreRetirement accounts held by Massachusetts consumers, including the IRAs, Roth IRA, 401ks and 403b plans, are critical for our long term financial security in this day and age. Retirement accounts are protected from creditors and in Massachusetts bankruptcy.
Read MoreIn 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.
Read MoreThere are hearings in Washington to explore giving Bankruptcy judges more power in rewriting mortgages. This could have a dramatic effect on defaulting Massachusetts homeowners, especially those that file for personal bankruptcy in Massachusetts.
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