Chapter 13 Bankruptcy in Massachusetts

If you are badly in debt, but still earning an income, DeBruyckere Roth & Associates, PLLC can help you file for Chapter 13 bankruptcy in Massachusetts. Chapter 13 is sometimes referred to as “wage earner bankruptcy” because the debtors must have an income in order to qualify. As opposed to Chapter 7 bankruptcy, in which non-exempt assets are liquidated and debts are discharged, Chapter 13 establishes a plan to pay back creditors.

If you are in a position to pay your debts over time, then contact Massachusetts Chapter 13 bankruptcy attorneys at DeBruyckere Roth & Associates, PLLC.

The advantages of Chapter 13 over Chapter 7

There are several advantages to filing Chapter 13 in Massachusetts

• The opportunity to save your home from foreclosure and resolve delinquent mortgage payments
• The opportunity to reschedule other secured debts over the period of the payment plan
• The ability to make all payments to the Chapter 13 trustee—like loan consolidation—who then distributes the money to creditors.
• Automatic stay: like other forms of bankruptcies, Chapter 13 provides protection against creditors trying to collect payments or seize assets from you

How Chapter 13 works

Eligibility for filing Chapter 13 in Massachusetts depends on the stability of your income and the amount of disposable funds available on a regular basis. If your average income is greater than the median income in Massachusetts, then you could qualify for a five year repayment plan. If you income is below the state’s median income, then your repayment plan will be three years.

Current federal law does not allow you to file a Chapter 13 petition if you have more than $1,010,650 in secured debt (e.g., car loans) and $336,900 in unsecured debt (e.g., credit card bills.)

Similar to Chapter 11 proceedings for businesses, a Chapter 13 in Massachusetts requires submitting a repayment plan for creditor approval. The repayment plan must be approved by the creditors after a meeting conducted by a U.S. Trustee of bankruptcy administrator. During this meeting, known as a 341 meeting, the debtor is required to answer questions from creditors about personal finances while under oath.

After the plan is submitted and approved, the success of the plan depends on the responsibility of the debtor. The debtor can determine how to make payments, such as payroll deductions. In some cases, after court approval, it may be possible to discharge some debts.

Call 978 686-4600 to file a Massachusetts Chapter 13 bankruptcy.