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.
Many of our bankruptcy clients come to us after the credit card companies file a lawsuit, or start to call them daily. Or, their car is repossessed for failure to make payment and all of a sudden they have a huge deficit bill on their hands. Have they waited too long? Perhaps. But it’s never too late to start dealing with your credit problems.
Back in September 2015 we wrote a blog article about Donald Trump and his several business bankruptcies. As we pointed out on that date, and as the Republican candidate hopeful points out whenever he can, these were not personal bankruptcies under Chapter 7, but business reorganization bankruptcies under Chapter 11.
It’s that time of the year again. The IRS requires that everyone that earns above a certain amount must file a tax return. The rule of thumb is that if you earn above $10,000, you need to file a tax return with the IRS; and a state tax return too. But others may need to as well – those that have had taxes withheld from their paycheck beyond what they owe, for example.
In a case decided recently in the Massachusetts Bankruptcy Court, Judge Feeney ruled in favor of the IRS and the Massachusetts Department of Revenue. The law is that late filed tax returns may preclude your from discharging your tax liability.
First, as the baby boomer generation is now starting to retire, one unfortunate statistic is that the percentage of bankruptcies filed by seniors is increasing. Folks over 65 made up 8.3% of all consumers filing for bankruptcy protection in 2009, when the percentage was 7.8 in 2006. About 10% of the seniors who filed for bankruptcy were retired.
When you file for personal bankruptcy, all lawsuits are stopped or “stayed”. However, with secured debts, such as mortgages or car loans, the lender, or creditor, can file to get permission from the Bankruptcy Court to lift the stay to recover the debt.
Just over ten years ago, on October 17, 2005, the Bankruptcy Abuse and Consumer Protection Act became law, and amended the federal bankruptcy requirements in many fundamental ways. Folks still call us up and ask about the changes and what the differences are.
This blog has repeatedly reported on what not to do when filing for personal bankruptcy protection and getting a “fresh start” and the reports come down to this: do not submit false testimony, be honest in your bankruptcy petition and schedules, and fully disclose your assets and liabilities to your attorney so he or she can make a plan for you to discharge you debts, if possible.
Direct Air was a private charter airline that flew out of numerous small airports including Worcester Regional Airport through 2012. Formally known as Southern Air & Tours, doing business as Myrtle Beach Direct Air & Tours, and headquartered in South Carolina, Direct Air was a large business from 2007 until it closed in 2012. The company filed for reorganization in Chapter 11 bankruptcy in March of that year, listing federal rules violations amounting to almost $10m as part of their debts.
As a Massachusetts bankruptcy lawyer, we help many folks who need to discharge their debts and get a fresh start. Many debts have already gone to collection. The collection law firms in Massachusetts include the Waltham firm Lustig, Glaser & Wilson. We have litigated some cases against that law firm and have always had a professional, albeit oppositional, relationship.