Worcester Chapter 7 Bankruptcy Lawyer

What Is Chapter 7 Bankruptcy in Massachusetts?

Chapter 7 is a common form of bankruptcy that allows individuals and businesses to wipe out many debts for a fresh financial start. It is referred to as both “straight” and “liquidation” bankruptcy since the filer’s property is liquidated by the bankruptcy trustee to pay off creditor debt. Chapter 7 is pertinent for those who have accumulated insurmountable debt, especially unsecured debt, such as credit card debt. 

If you are facing crushing debt, you may be eligible for a Chapter 7 filing. As your Worcester Chapter 7 bankruptcy attorney, my goal is to find the best legal way to restore your financial health.

I can discover what will- best fit your needs based on the facts of your situation. Should Chapter 7 be right for you, I will ensure that you fully understand the procedure, its eligibility requirements, and its consequences for your future.

What Is a Chapter 7 Bankruptcy Means Test?

Before filing, a "means test" will help you determine whether your income qualifies for filing for Chapter 7 bankruptcy. Those who don't qualify can file for Chapter 13.

How Does Filing for Chapter 7 Bankruptcy Work?

During the bankruptcy process, all of your property and assets that are not exempt are gathered into a bankruptcy estate. These assets are then sold by your bankruptcy trustee in order to pay off your debts. Certain debts cannot be wiped out using a Chapter 7 filing.

In a Chapter 7 filing, certain assets are exempt from liquidation, either through state or federal exemption guidelines. In Massachusetts, state exemptions are much more generous than federal. These include exemptions for your home, vehicle, and more.

Once you file for a Chapter 7 bankruptcy, your creditors can no longer call or contact you in any way to demand payment.

What is the Difference Between Chapter 7 and 13 Bankruptcy?

The primarily differences between Chapter 7 and Chapter 13 bankruptcy is that Chapter 7 is liquidation bankruptcy, which entails the sale of unnecessary assets for the purpose of paying back debt. Whereas Chapter 13 bankruptcy entails a repayment plan lasting usually 3-5 years for the purpose of repaying debt.

Find Out if Filing for Chapter 7 is Right for You!

My extensive experience in handling the financial situations of people across the state has given Morrison & Associates a leading edge in the bankruptcy field. My priority is to lead you to debt relief and to the peace of mind that comes with a clean slate and a fresh start.