BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?

Talk To Us About Your Options:

We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.

We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.

Why Call Bucacci & Simonian:

We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.

Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients' homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/

What to Avoid:

Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.

Protect Yourself:

Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney

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Car Title Loans & Bankruptcy

A car title loan is when you borrow money and offer your car as collateral, and if you default, the lender can repossess your car. Exactly how much you may borrow and how quickly you need to repay the loan depends on your loan contract and the value and equity in your car. The lender may be able to take your car and sell it, keeping the difference between what you owed on the loan and the sale price. If the vehicle sells for less than what is owed you can still be in debt to the lender. If that were to happen you could discharge the debt in bankruptcy whether it is chapter 7 bankruptcy or chapter 13 bankruptcy. What the lender is permitted to do is dependent on state law and some states don’t allow vehicle title loans at all.

Note that you will most likely need to pay back a lot more than what you borrow. Hi interest rates and the cost of borrowing the money, means these are usually very expensive loans. The Federal Trade Commission says lenders often charge a title loan APR of 300%. Some states cap APRs for vehicle title loans, but the Consumer Financial Protection Bureau extended its deadline for putting new protections into place for borrowers who take on vehicle title and other high-cost installment loans. It has proposed rolling back requirements for lenders to determine upfront if borrowers could afford to repay the loans. Often people in desperate situations will try to obtain such a loan before filing bankruptcy.

What is a car title? A car title is an official, state-issued document that says who owns the vehicle. It will list the owner’s name and the car’s year, make, model and the vehicle identification number or “VIN Number.” Every time the car has a new owner and every time the owner moves to a new state, the title will change. Vehicle title loan lenders will often require a “clear” title, meaning you own your car outright and free and clear of other liens or loans against the vehicle.

What if you don’t own your car outright? It may be harder to get a vehicle title loan or you may not be able to borrow as much money as you may need, or you may not be able to get a car title loan at all if you already have a loan on your car, depending on your state’s laws. You technically don’t own the car, the lender does. Depending on your state’s law, you may not even have a title in-hand, the lender may have it. If you do have the title and still owe on your car, it will say there is a lien on your car. This makes in more difficult to obtain such a loan.

The Benefits of a Car Title Loan

Car title loans are loans of last resort. It’s possible that a bank or credit union will offer car title loans at lower rates than storefront lenders.

Easier to Qualify

Because the lender knows it has something of value to take (your car) if you don’t pay it back, it is likely to have more relaxed credit score and income requirements than those for other types of loans. However, your state might impose certain income or other requirements. Again, a title loan should be a last resort for an emergency situation. If you are considering such a loan you should consult with a bankruptcy attorney first to explore other options.

Greater Loan Amount

Depending on how much your car is worth, you may be able to borrow a greater amount than a payday loan, which is another type of installment loan that uses your paycheck as collateral instead of a car title. Most auto title loans are for 25% to 50% of the car’s value, usually between $100.00 and $5,500.00 though some lenders may offer as much as $10,000 or more.

• How do you know how much your car is worth? Lenders will use industry standards like NADA or Kelly Blue Book to look up how much your car is worth. Do not expect that they will use the high retail value but rather the wholesale or trade in value. They will usually offer you less than this amount so that if you don’t pay back the loan and they take your car, they can then sell it for a profit. You can use the same online industry guide for free to get an idea of the amount you could borrow.

The Drawbacks of a Car Title Loan

We can’t emphasize this enough that vehicle title loans are expensive, more expensive than nearly any other type of credit and potentially risky. If you live in Massachusetts and are considering such a loan it may be best to schedule a free consultation with a debt lawyer or bankruptcy attorney before you make a mistake.

A Cycle of Debt

Lenders for car title loans make more money if borrowers stay in debt. In addition to high APRs, title lenders often charge fees or costs. If you cannot repay the loan, a “rollover” loan would fold all of those costs into a new loan. What sounds like a plus really isn’t because the new loan would add more fees and interest, making it even more difficult to get out of debt. CFPB data suggest that’s exactly what happens as a significant number of vehicle title loan borrowers enter multiple rollover loans and the cycle of debt begins.

You Could Lose Your Car

Default on your car title loan and the lender could repossess and sell your car. To add insult to injury, you may even be charged a repossession fee and auction fees. Some lenders require borrowers to furnish them an extra set of keys or install a device that could impair your ability to start the engine if you do not make payments. These devices may be used for repossession or as a way to remind borrowers to pay their loans on time. When the CFPB studied vehicle title loan borrowers between 2010 and 2013, 1 in 5 or 20% had their vehicle seized or repossessed.

If you find yourself in a situation where you are in debt and desperate for money to keep up with your bills it may benefit you to speak with us. We are Massachusetts bankruptcy attorneys serving all of Bristol County Massachusetts and Plymouth County Massachusetts. Attorneys Anthony Bucacci and Robert Simonian are Massachusetts bankruptcy lawyers helping people file bankruptcy in all of Massachusetts and particularly Southeastern Massachusetts including Fall River, Seekonk, Swansea, Freetown, Westport, Somerset, New Bedford, Dartmouth, Assonet, Fairhaven, Assonet, Mattapoisett, Middleboro, Lakeville, Raynham, Attleboro. Call us today or visit our website today to schedule a free consultation.

Income Tax Debt & Bankruptcy

When you file for bankruptcy, you may be able to wipe out and discharge income tax debts depending on how old the tax debt is. Bankruptcy law has specific rules for how old an income tax debt must be in order for it to be discharged along with a few additional requirements.

Timing: Tax Return Was Due At Least Three Years Ago

The federal income tax debt that you are seeking to discharge must have become due, including all extensions, at least three years before the day you file for bankruptcy.

Example: You owe taxes on your 2015 and 2016 tax returns. Your 2015 tax return was due on April 15, 2016. To meet the three-year requirement for your 2015 taxes you must file for bankruptcy on or after April 15, 2019. Your 2016 tax return was due on April 15, 2017, but you requested an extension that expired on October 15, 2017. To meet the three year requirement for your 2016 taxes you must file for bankruptcy on or after October 15, 2020. Generally speaking it is always 3 years from when the tax became DUE not 3 years from the tax year filed.

Timing: Tax Return Was Filed At Least Two Years Ago

In order to discharge your federal income tax debt, you must have actually filed the tax return in which the debt was related to at least two years prior to the filing of bankruptcy. Tax debts related to unfiled tax returns are not dischargeable. You must file the return and although it satisfies the 3 year rule it has to have been filed for at least 2 years.

Timing: Tax Assessment Occurred At Least 240 Days Ago

The IRS must have recorded your liability and assessed it to you for the tax debt at least 240 days prior to the filing of your bankruptcy. This is known as a “tax assessment.” Often, the date you file your tax return is when your related tax debt is assessed. However, on occasion, the IRS can assess additional taxes later based on an audit. When this happens, you must wait 240 days from the assessment to discharge the additional taxes in bankruptcy. It is very important to know when the tax was actually assessed to you by the IRS and wait at least 240 days to file for bankruptcy.

No Fraud or Willful Evasion Requirement

If you committed fraud when filing your income tax returns you can not discharge the debt in bankruptcy. If you willfully evaded paying taxes, your tax debt will not be eligible for discharge in bankruptcy. You would have options to repayment in a chapter 13 bankruptcy.

Penalties, Interest and Tax Liens

If an income tax debt meets the rules and requirements discussed above, interest charges and penalties on that underlying tax debt will be discharged as well. If the IRS has recorded a tax lien against your property before you file for bankruptcy, the bankruptcy court cannot set aside your tax lien. After the bankruptcy, if the tax lien has not been paid off, the IRS lien will remain. Chapter 13 bankruptcy does offer you options with tax liens. You should consult a qualified and experienced bankruptcy attorney for legal advice.

Chapter 13 and Non-Dischargeable Income Tax Debt

If your tax debt is not dischargeable in bankruptcy, filing a Chapter 13 bankruptcy may still help you as it can make the process of paying back your debt easier. In a Chapter 13 plan you will need to pay your non-dischargeable tax debt over a 3 to 5 year period. The plan might offer better terms than an IRS installment plan and is usually an amount that is more comfortable than what the IRS proposes. It is important to remember that the automatic stay imposed by the bankruptcy court will prevent collection activity while you are in bankruptcy and provide you a lot of relief.

Facing Foreclosure ???

Facing Foreclosure and Bankruptcy

If you are facing foreclosure and the loss of your property you may want to consider your options in bankruptcy. There are many options available to you. If you are losing your home and the house has not gone to foreclosure sale yet, you can file a chapter 13 bankruptcy. This would allow you to pay the past due mortgage payments over time and save the home.

If you do not want to save the home but are afraid of losing your equity, you can file a chapter 13 bankruptcy with a sales plan. If you home is foreclosed your will most likely lose a lot or all of your equity. Generally, banks do not care if you make a profit from the home sale and are only interested in getting their money back. If you file a chapter 13 bankruptcy with a sales plan you can stop the foreclosure and sell the home for full market value. This way the bank gets their money back and you can keep the equity or use the equity to pay off other debts.

In some situations it can be advantageous to file a chapter 7 bankruptcy and allow the Chapter 7 Bankruptcy Trustee to sell the property for you. By doing this you can get full market value and preserve or save your equity and pay off other debts. The Chapter 7 Bankruptcy Trustee, and not you, has the power to stop the sale and get the most reasonable price for the home. The property would temporarily belong to the trustee who, generally speaking, has a lot more authority and power over bankruptcy assets. Otherwise, if the house went to foreclosure, you may end up with a deficiency balance and now owe more money or you could end up with little or nothing at all. If there is equity in your home and there is a threat of you losing it bankruptcy may be in your best interest.

Whether you file a chapter 7 bankruptcy or a chapter 13 bankruptcy the Bankruptcy Court will immediately impose the automatic stay which is like a restraining order against all of your creditors. This will allow you time to make a rational decision and sell your property for the full value instead of losing the property to foreclosure sale or having to sell it fast at a greatly reduced price.

All Debts Discharged

Are all of the debts discharged?

Bankruptcy: not all debts discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable.  Public policy reasons do not allow the discharge of certain debts.  Debts incurred for drunk driving injuries to another is one example.

Chapters 7, 11, 12,  lists 19 categories of debt excepted from discharge. A more limited list of exceptions applies to cases under chapter 13.

Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523(a) applies. The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units for fines and penalties, debts for most government funded or guaranteed educational loans or benefit overpayments, debts for personal injury caused by the debtor’s operation of a motor vehicle while intoxicated, debts owed to certain tax-advantaged retirement plans, and debts for certain condominium or cooperative housing fees.

The types of debts described in sections 523(a)(2), (4), and (6).  Obligations obtained by fraud or maliciousness not automatically excepted from discharge. Creditors must ask the court to determine that these debts excepted from discharge. Discharge can apply to the debts listed in sections 523(a)(2), (4), and (6).  Only with the absence of an affirmative request by the creditor and the granting of the request by the court.

A slightly broader discharge of debts is available to a debtor in a chapter 13 case than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7.  This includes debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations.  Also debts arising from property settlements in divorce or separation proceedings. Although a chapter 13 debtor generally receives a discharge only after completing all payments required by the court.  There are some limited circumstances under which the debtor may request the court to grant a “hardship discharge.”  Even though the debtor has failed to complete plan payments.

Such a discharge is available only to a certain debtors.  Failure to complete plan payments is due to circumstances beyond the debtor’s control. The scope of a chapter 13 “hardship discharge” is similar to that in a chapter 7 case. With regards to the types of debts that are excepted from the discharge. A hardship discharge also is available in chapter 12.  Failure to complete plan payments.  If due to “circumstances for which the debtor should not justly be held accountable.”

If you have specific questions please call Bucacci And Simonian at 508-673-9500 or visit our website.

Medical Bills Can Stack Up Quickly – Is Bankruptcy the Answer

Medical Bills Can Stack Up Quickly - Is Bankruptcy the AnswerWith everything that is going on, many people are concerned about their health and on going prescriptions. One’s medical bills can cause great concern and keeping up with them can be a real challenge and finical concern. The question many have is “what can I do?”

Filing Bankruptcy is one possible option and many people are not sure what will happen to their assets and property if they decide to choose that course of action. If you decide to pursue the options, both pro and con, of filing Bankruptcy you may be surprised.

Will I be able to keep my house if I file Bankruptcy because of overdue Medical Bills ?

Will I be able to keep my car if I file Bankruptcy because of overdue Medical Bills ?

How will this impact my credit score?

People have many questions about Bankruptcy and really have no solid clue about the process and options on doing so. We are here to go over all the options you have regarding filing your Bankruptcy.

When filing Bankruptcy it is best to work with someone that can explain what option you have and what may be best in your particular situation. This is what we do when preparing to file your claim.

Medical bills are, sadly, often unforeseen and can add up quickly and filing Bankruptcy may just be the answer.

Speaking with a Bankruptcy Attorney and going over your situation to find out what options you may have is always a good idea. After all, you will what to know what options you have to eliminate the stress and concern you have regarding any outstanding debt you may have.

Meeting with a Bankruptcy Lawyer is not an admission of guilt or fault. After all, we are hear to help in every way we can to get you back on track with a fresh start.

The process of filing Bankruptcy is not the same for every person, each situation is unique.

If you find yourself in an uncomfortable position and are over whelmed with outstanding medical bills? You should seek professional advise.

We are here to help and get you back on track, give us a call today.

Social Media and Filing Bankruptcy in Massachusetts

Social Media And Filing Bankruptcy in Massachusetts

Many people share personal details of their lives on social media.  Social media and bankruptcy in Massachusetts may have consequences.  Post like vacations they take, places they shop, purchases they make, and even what they wear. This kind of sharing can sometimes have legal consequences. One example would be an angry post about a soon to be ex spouse could cause problems in a pending divorce.  Also, posts that exaggerate your financial situation could cause you problems in bankruptcy.  It is never wise to post information that exaggerates your lifestyle before, during or after filing bankruptcy.  Viewers of your post and creditors could misinterpret it and use it against you.  One example shows just how problematic things can be when you are not careful on social media.

Bankruptcy Filing and Social Media Problems

In 2015, the musician 50 Cent filed for Chapter 11 bankruptcy protection. During his bankruptcy he posted several photographs with a lot of money. He displayed a stack of money in his freezer.  50 Cent also posted a photograph of himself surrounded by piles of cash on a bed.  He claimed the bills were props, such as those used in music videos.  The creditors and the bankruptcy judge were not impressed and not amused by those pictures.

According to the New York Times, 50 Cent stated that the postings were important to maintaining his image and for promotion of his music. This made it difficult to determine whether he was hiding assets or money.  This made it difficult to see if he was telling the truth.   His creditors now asked to revalue his assets.  The bankruptcy judge asked him to reappear in court.

Fortunately he received a large settlement from a lawsuit and was able to pay off his creditors in a short period of time.  As you can see, it can be dangerous to post on social media if you are going through bankruptcy.

Be Careful What You Post and Share

Creditors do not know anything about you. People who do not know you can easily misinterpret your social media posts. Pictures of a business trip could be seen or interpreted as a vacation when posted on social media.   Visiting a relative out of state for an emergency can look like a vacation.  Eating at a fancy restaurant for a family event could look extravagant.  Be careful of what you post on social media before and after filing bankruptcy.

If you are considering filing bankruptcy in Massachusetts you should consult with an experienced bankruptcy attorney.  It is not wise to take advice from friends and family.  Also, trying to sort through the information on the internet could get you in trouble.  A lot of the information on the internet about bankruptcy is very general and can easily be misinterpreted.  It is always advisable to consult with an experienced bankruptcy attorney.  Call us anytime to discuss your options.  You can also visit our website to schedule an appointment.  The consultation is always free.

 

Protect Your Assets in Bankruptcy

You can protect your assets in bankruptcy.  Sometimes it is tempting for a debtor in bankruptcy to hide assets from the bankruptcy trustee and court.  This means not including them in the schedule of assets or schedule of exemptions and not telling the trustee about them. This is usually when an asset is important to a debtor. It may be because they think nobody knows about it and think they can hide it from the bankruptcy trustee.

Chapter 7 bankruptcy filers tempted to leave out assets of the bankruptcy schedules should reconsider. A requirement is full disclosure.  Listing all property is a requirement.  You must swear to this.  Also they must take an oath at the meeting of creditors. If you haven’t disclosed all of your assets you will commit perjury.

Maintaining The Assets You Have

Penalties for committing perjury include time in prison and/or fines. Also, the bankruptcy trustee will seize the asset and liquidate it to pay your creditors. Amending the schedule of exemptions to apply exemptions toward the concealed assets is not likely if you purposely did not disclose the asset.  It is never advisable to hide an asset.

Telling the bankruptcy court that you told your attorney about the asset but the attorney said it didn’t have to be listed usually does not work.  It usually does not work to say the lawyer forgot to list the asset. You must read and sign a disclosure.  This states that you are aware that it is illegal to hide assets. Attorneys should review the bankruptcy petition with you to make sure all assets are listed.

Bankruptcy debtors do not have the right to dismiss their bankruptcy case because they don’t want to complete the process. Once bankruptcy proceedings have begun, the debtor must show good cause for dismissing the case. Trustees that find concealed assets are not likely to dismiss a case.

Asset Exemptions

The only legal way to protect assets in bankruptcy from Chapter 7 bankruptcy liquidation is to apply one of the many available exemptions toward the asset. State and federal law allow bankruptcy debtors to keep certain types and quantities of assets after a Chapter 7 bankruptcy.

There are a number of exemptions in under Massachusetts bankruptcy law to protect your property and assets.  The bankruptcy exemptions are generous and very rarely does anyone lose property.

Use of bankruptcy exemptions allows an experienced bankruptcy attorney to protect all of your assets.  Almost all cases have property that is fully protected.  The bankruptcy exemptions are generally very generous and are enough to protect people’s assets in most cases.  Chapter 13 bankruptcy protects assets not protected in chapter 7.  This allows one to keep the asset.

If you’re considering filing for Chapter 7 bankruptcy call a bankruptcy lawyer.  Let an experienced bankruptcy attorney help you identify legal strategies for keeping those assets. In Massachusetts bankruptcy attorney Robert Simonian and bankruptcy Anthony Bucacci can help you keep your assets.  We can resolve their debt and insolvency issues in Chapter 7 bankruptcy. Call Bucacci & Simonian at 508-673-9500 or visit our website at www.massbklaw.com

Medical Bills Massachusetts Bankruptcy


Medical bills & Massachusetts bankruptcy. The cost of healthcare in the United States has increased in recent years.  As a result, Americans have taken on large amounts of medical debts and bills that they cannot afford.  This affects Massachusetts residents.

This problem is bad.  Charities use donations to pay peoples medical debts. This means, charities buy the debts from medical providers so that the patients no longer owe money to the provider.

Medical bills and debt are a very big cause of bankruptcy for Americans

People need relief from these debts.  If charitable relief is not available then people often have to resort to filing bankruptcy. Medical providers often resort to hiring collection agencies.  For patients that are unable to pay medical debts are sued in court. Unfortunately for many, medical bills & Massachusetts bankruptcy go hand in hand.

Experts feel that this is an indication that our health care system is broken.  The cost of healthcare is very high.  The cost of medical insurance is very high.  The deductibles that people must pay are often very expensive.  Bankruptcy may be the only option for many patients that cannot pay their bills.

Approximately 21 million Americans have $46 billion of medical debt as of April 2021.  They face collections or lawsuits for the money owed.  If they cannot afford to pay then Americans and Massachusetts residents have to file bankruptcy due to medical debts.

Americans spend far more on health insurance than other countries compared to Germany and the Netherlands.  Healthcare is not affordable to many Americans.  As result of rising cost, people do not have medical insurance that meets their needs.  Some people have health insurance plans that they cannot afford.  The insurance premiums and deductibles exceed what their incomes allow them to pay.  Americans are pushed into bankruptcy because medical debts are overwhelming.  This can cause a lot of stress and concern. Many people do not have medical insurance.  A medical emergency will cause Massachusetts residents to file bankruptcy.

Quality health care is not affordable for an estimated 46 million Americans

Medical debts cause Massachusetts citizens to file for bankruptcy.  Emergency room visits account for a lot of medical debt.  Doctor visits and medical specialists account for a large portion of medical debt in America.  Childbirth and related medical expenses drive people into bankruptcy if they cannot afford the medical bills.  Dental care and related medical expenses cause people to file bankruptcy for the bills they cannot afford to pay.

There are many reasons that people file for bankruptcy. Medical expenses do have an effect on people’s financial situations.   Some financially responsible people have to file for bankruptcy. For others, the expenses are the final push over the financial cliff and into bankruptcy.

The debate over medical expense bankruptcy will continue for the foreseeable future.  Politicians spin the numbers to work for the votes they need.  Medical expenses influence people to file for bankruptcy in America.  Bankruptcy petitions include medical bills.  Bankruptcy discharges medical bills.  If you have questions about bankruptcy and medical bills that you can’t afford please visit our website.

Researchers disagree on the evidence for medical bills causing bankruptcies

The reasons for filing do not have to be stated when a debtor files for bankruptcy. As a result, estimates are based on surveys.  The answer will depend on how researchers phrase their questions, and how the survey respondents define the cause of their bankruptcy filing.

A variety of factors cause bankruptcies. Many people with medical debt have other debts like credit cards debts and personal loans. The low income, those without savings and loss of a job now trigger a bankruptcy filing. Medical bills & Massachusetts bankruptcy filings are related.

Medical debts are often unexpected and many Americans live paycheck to paycheck for a number of reasons including the economy in Massachusetts.  Unexpected or sudden medical bill causes problems in the financial lives of people.  This often leads to bankruptcy.  Many people are not aware that a particular hospital or medical provider was not part of their insurance plan.  As insurance companies deny insurance claims people file for bankruptcy.

Massachusetts Evictions Unpaid Rent Bankruptcy

How bankruptcy helps with evictions and unpaid rent in Massachusetts.

The eviction moratorium is ending and unpaid rents are due.  How does bankruptcy help?

Generally, in most cases, a person threatened with eviction can move to a new place, list the past due rent in a bankruptcy petition and wipe out the unpaid rent.

Most people qualify for a basic Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, tenants in debt and an evicted person can list their debts, including unpaid rents, and all of those debts are wiped out except for certain priority debts like taxes, criminal restitution, child support, alimony and student loans. Unpaid rents are the kind of debts that are wiped out.

The unpaid rent can also be wiped out in a Chapter 13 bankruptcy.

Bankruptcy can help with evictions in Massachusetts for unpaid rent.  Here are a few different choices:

Eviction filing prepared before bankruptcy filed

Eviction proceeding not filed yet then property owners cannot evict a person for unpaid rent.  The bankruptcy automatic stay protects a renter from eviction for as long as it is in effect. When bankruptcy is filed before the eviction is filed a party  involved in an eviction is protected.  The landlord will need to file a motion to lift the automatic stay.  This would remove the bankruptcy protection and then the property owner can evict a tenant for unpaid rent. A renter would still owe rent for the time a tenant occupied the home after filing bankruptcy until the tenant moves out.

Move to new home then file bankruptcy

Example: rent has not paid due to the pandemic.  Tenant moves to a new home. Past due rent scheduled in the bankruptcy.  Unpaid rent subject to bankruptcy discharge. Fees subject to bankruptcy discharge.  Costs subject to bankruptcy discharge.  The bankruptcy does not affect the new rental agreement and the tenant can keep paying rent at the new home. In Massachusetts, bankruptcy can stop evictions for unpaid rent.

Eviction filed before bankruptcy filed

Eviction not presently allowed by a court.  The bankruptcy court can protect tenants. A tenant must move out immediately if the court awards the landlord an eviction.  This is if the tenant has not filed for bankruptcy protection and included the unpaid rent. This applies to Chapter 7 bankruptcy or Chapter 13 bankruptcy.  If a renter is facing possible eviction consider filing bankruptcy before the eviction date to get the bankruptcy court protection.  A tenant with unpaid rent will get more time in the home and allow the renter to search for a new rental property.

No eviction yet? File bankruptcy then move

If the renter has not paid rent in a while and the tenant needs to file bankruptcy right away the tenant can file bankruptcy and wipe out those unpaid rent amounts.  However the renter is liable for any fees, costs and expenses.  Rent incurred from the day of the bankruptcy filing until the day property owners force tenants to move out.  Unpaid rent is subject to bankruptcy discharge.  The tenant will be responsible for any rent due after the filing of the bankruptcy.

Call us today to schedule a free consultation or visit our websiteBucacci & Simonian

Rebuilding Your Credit After Bankruptcy

REBUILDING YOUR CREDIT AFTER BANKRUPTCY

Rebuilding Your Credit After BankruptcyThe most frequently ask question from our clients is “rebuilding my credit after bankruptcy?”

Chances are, that if you have made the decision to file a bankruptcy, you are at a point where some or all of your debts are behind, you receive collection notices or even law suits. At that point you probably have been making ends meet somehow without using your cards.

When you can’t obtain new credit with high debts you have to do something.  This will prevent a creditor from granting you a new card or a loan unless you take action.  Rebuilding your credit becomes necessary in order to move forward in life.

You have now made the decision to obtain debt relief by hiring an attorney to file a bankruptcy.  After you can begin rebuilding your credit with a bankruptcy discharge in hand.

Your attorney takes you through the process of filing bankruptcy and then, afterwards, the weight of those collection letters, collection call and law suits is gone.

After bankruptcy, there are many avenues to obtain new credit. First and foremost, when a bankruptcy is filed the person that filed can decide to keep a car with automobile loan or a house and a mortgage.  Secondly, reaffirmation of those debts allows a bankruptcy filer to get on track immediately. Thirdly, the banks will record your mortgage payments to the credit bureaus. Once the attorney discusses reaffirmation of debts advice can be given accordingly.  Attorneys will explain the process.

What if you do not have a car loan or mortgage to reestablish yourself?

Without any debt many credit card companies are willing to grant you a fresh start. Credit card companies offer decent credit limits.  Favorable credit reporting usually increases credit limits and credit offers.  Offers of new credit from credit card companies listed in the bankruptcy often surprise clients and then clients receive new credit.

Open a secured credit card.  As a result, this will help to improve your credit. Deposit money in a bank account that issues you a secured card based upon the amount of your deposit. Lenders report timely payments and payment history to the credit bureaus.

In a short amount of time credit scores will improve.  Lenders and credit card companies will extend credit.

It is not unusual for clients to obtain automobile loan months after bankruptcy.  A mortgage is the most difficult type of credit to obtain after bankruptcy.  Usually one to two years after a bankruptcy you can obtain a mortgage.

These are some techniques to obtain the fresh start you deserve and there are many resources available.