Burns | Jain - Page 9 of 32 - Boston Bankruptcy Lawyer Blog

Personal Injury Law Firm Burns & Jain Injury Blog

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.

Call Us 617-227-7423

When Does Willful and Malicious Conduct Factor Into a Bankruptcy Discharge?

The federal bankruptcy laws allow for exemptions to discharge. Even for folks who have no assets, some debts are just not dischargeable. The exemption to discharge that is getting a lot of scholarly (and media) attention lately is student loans. They are hard to discharge. Alimony and monies owed pursuant to spousal or child support are not dischargeable in bankruptcy. Monies secured by fraud and fraudulent activity are not dischargeable. Judgments owed to victims of alcohol related personal injury or death cases are not dischargeable.

Credit Report Errors Result in Higher Interest Rates for Consumers

Do you have errors in your credit report? Have you checked? Credit Report errors could have significant impact on your ability to get a loan, or to get a fair interest rate on a loan.

Adversary Proceedings In Chapter 7 Bankruptcies

What are adversary proceedings in bankruptcy cases and how can debtors avoid them? Most personal no asset Chapter 7 bankruptcy cases are simple and straightforward. Debtors file a petition with the Massachusetts Bankruptcy Court and get a Trustee Hearing in 30 days. Generally, all consumer debts are discharged once the client testifies that s/he has made accurate assertions in the Petition and Schedules, and the Trustee is satisfied that they are accurate.

Bankruptcy Lawyer | Chart of MA Bankruptcies

Bankruptcy in 2013

Massachusetts Bankruptcies were Down in 2012 According to reports, Massachusetts’s consumers filed 18% fewer bankruptcies in 2012; with 19,744 in 2011 and 16,107 in 2012. For Chapter 7 bankruptcies, there were 14,964 in 2011; in 2012 filings went down to 11,964. Chapter 7 personal bankruptcies accounted for about three quarters of the bankruptcies in 2012.

Massachusetts Homesteads Protect Assets

The Massachusetts Homestead law is an exceptional way for homeowners to protect their primary residence from creditors; we recommend everyone file one. In bankruptcy, it is a useful tool because it “exempts” equity in the home from the creditors. The federal bankruptcy laws were amended in 2005 and must be carefully followed in bankruptcy court. The Massachusetts Homestead Law underwent significant amendments in 2011. It needs to be carefully followed to get the maximum $500,000 protection; and $1 million for seniors. This can be particularly important if you end up in a nursing home. The new law can also apply to folks whose home is owned by a real estate trust. Furthermore, there are protections for unmarried co-owners under the new Homestead Law. How is it working?

Massachusetts Bankruptcy and the Unsecured Line of Credit

In a recent case handed down by federal Bankruptcy Court Judge Joan Feeney, a Massachusetts debtor who filed for bankruptcy protection intended to discharge a debt to Liberty Bay Credit Union. This was an unsecured debt. Such debts, in a Chapter 7 personal bankruptcy are generally discharged. In this case, however, a hand written note made by the debtor, relied on by the Credit Union, resulted in non dischargabilty! Here is what happened. Patricia Belforte applied for a loan from the Liberty Bay Credit Union. It was an unsecured loan for $10,000 in 2001; she made payments through 2007 when she applied for an increase by $4,000. The “application” for the additional monies included a hand written note stating that they would be used for “tuition” for her children. There was no requirement that the monies actually be used as a student loan.

Since IRAs and 401ks are Protected in Bankruptcy, Should We Invest in Ourselves?

As Halloween goblins fade and we start to look at what we have left to do this calendar year, one thing our Boston bankruptcy clients ask after we inform them that they can protect their IRAs and 401ks in bankruptcy, is how they could or should invest their retirement savings. First and foremost, we want to remind folks that these funds were designed by Congress as retirement vehicles. The reason they are tax deferred is to encourage investments NOW for taxable withdrawals LATER during retirement. They were not designed as savings accounts for cars, boats, horses or houses. Sure, some 401k plans allow for loans, however, those loans should only be taken out very cautiously. Furthermore, if the loan is not paid back before you leave or are discharged, there is an immediate payback requirement in most programs; if you can’t pay it back, you will owe taxes and penalties.

Massachusetts Bankruptcy and Elizabeth Warren

Advocates for Massachusetts consumers are looking seriously at Elizabeth Warren’s record of pro-consumerism as the election nears. Warren, running for United States Senator from Massachusetts, aims to be the first woman senator from our generally progressive state. From the perspective of a Boston bankruptcy attorney, we could not have a better advocate for Massachusetts consumers who are at financial risk.

Consumer Financial Protection Bureau Renews Efforts to Police Debt Collectors

We have written about the Consumer Financial Protection Bureau (CFPB) since it was in the mind’s eye of Elizabeth Warren, the Massachusetts candidate for United States Senate. Ms. Warren, a professor at Harvard Law School, was a consultant to the United States Congress while the Dodd Frank legislation was pending, and was hired by President Obama to implement the legislation and to set up the CFPB. Politics being what they are, she would not be confirmed by the Senate, so she returned to Massachusetts to run for office.

Bankruptcy Fraud: Bankruptcy Trustee Imprisoned for Embezzlement

United States bankruptcy trustees in Massachusetts generally are of the highest integrity. In my 27 years of appearing before US bankruptcy trustees at debtors’ hearings, also called 341 meetings, I have been impressed with their knowledge of the law, their caring nature considering the embarrassing and difficult circumstances of debtors, and their efficiency in moving the multiple cases through the system.