Massachusetts Chapter 7 Bankruptcy Lawyers Helping You Secure Your Financial Future
Many people who are struggling financially decide to file for Chapter 7 bankruptcy. Filing for bankruptcy can be frightening, which is why it’s important to understand exactly what the process entails before you take action.
At Benner & Weinkauf, we understand that no one ever wants to file for bankruptcy. But we also know that filing for Chapter 7 bankruptcy may be the best step for you to take in order to achieve financial stability. Let us review your financial situation and help you determine if Chapter 7 bankruptcy is right for you. Schedule a free strategy session with our team of Plymouth bankruptcy lawyers now by calling (781) 706-3228.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is often referred to as the “liquidation” bankruptcy. This is because if you choose to file for Chapter 7 bankruptcy, the court will require you to liquidate some of your assets and use the proceeds to pay back some of your debts. Most of the debts that remain after this liquidation will be discharged by the courts.
What Assets Are Exempt in Chapter 7 Bankruptcy?
Certain assets are exempt, which means they will not be liquidated if you file for Chapter 7 bankruptcy. Some of the assets that are exempt in Massachusetts include:
- Necessary clothing and bedding
- Up to $7,500 in vehicle equity
- 85% of your gross earnings or the amount that is equal to 50 times the state’s minimum wage
- Your primary residence
If an asset is exempt, it will not be liquidated in bankruptcy proceedings. This means you will get to keep these assets even if you choose to file for Chapter 7 bankruptcy.
Who Qualifies For Chapter 7 Bankruptcy?
You must meet certain requirements in order to file for Chapter 7 bankruptcy in Massachusetts. By law, you must pass what is called the “means test” in order to qualify for Chapter 7 bankruptcy.
The first step in the means test is comparing your average monthly income to the median family income in Massachusetts. If your income is below the state’s median, you pass the means test, which means you can file for Chapter 7 bankruptcy.
If your income is above the state’s median, you must move on to the next step in the means test process. This step involves calculating your monthly disposable income. To calculate your disposable income, you will need to subtract certain living expenses from your monthly income. If your disposable income is low after subtracting these expenses, you may qualify for Chapter 7 bankruptcy. Let our attorneys guide you through the means test to figure out if you qualify for this type of bankruptcy. To learn more about this and Chapter 13 bankruptcy, you can head over to our blog post that discusses their differences.
Set Up A Free Strategy Session With Our Chapter 7 Bankruptcy Attorneys in Plymouth
Are you in financial trouble? If so, filing for Chapter 7 bankruptcy might be the right option for you. But it’s in your best interest to discuss your options with our experienced Chapter 7 bankruptcy attorneys before you officially file. Let us carefully review your financial situation to determine if Chapter 7 bankruptcy is right for you. If it is, we will stand by your side and guide you through the entire process to help you finally get the fresh financial start you deserve.
To learn more about Chapter 7 bankruptcy–and other debt-relief options–give the legal professionals at Benner & Weinkauf a call today at (781) 706-3228.