Back To Basics Education Series: What It Means to File Chapter 7 Bankruptcy in Massachusetts

by Jack Morrison on September 13, 2011

This month, in honor of back to school, we’re dedicating the next few weeks to a special education series, “Back to Basics.” As a Worcester bankruptcy lawyer, I think it’s important we discuss four basic topics that are critical to understanding if bankruptcy is right for you:

  1. Chapter 7
  2. Chapter 13
  3. Reaffirmation
  4. Life After Bankruptcy

Now, let’s delve into our first topic: understanding Chapter 7 bankruptcy in Massachusetts.

What It Means to File Chapter 7 Bankruptcy in Massachusetts
From my experience working with hundreds of clients experiencing financial difficulty, I know that making the decision o file bankruptcy is not done lightly. There is always an emotional stage you must go through—and come out of. The vast majority of people experience denial, and they think, “Hey, I got myself into this, I can get myself out.”

Unfortunately, by the time these people come to grips that they can’t climb out of the financial hole by themselves, they’ve wasted precious time, money and emotional energy.

Chapter 7 provides protection for individuals to give them a fresh start. Anytime I counsel a client, the one question I always ask is: “if you could pay your debts in full in 5 years or less without any problem at all, can you?”  If the answer is no, then Chapter 7 is an option worth exploring.

Chapter 7 Bankruptcy in Massachusetts is referred to as a “straight bankruptcy” because it entails a liquidation of all your assets in order to repay your financial obligations. As soon as your case is filed, you no longer owe any debt; and, creditors and collection agencies can no longer contact you trying to collect. The law allows you to “wipe out” your obligation to repay the money you borrowed from them. You walk away without being legally responsible to repay the debt. Read here for more information about Chapter 7 in Massachusetts.

Next week, tune in as we discuss the basics of Chapter 13.

Do you have questions about your financial situation? Then you might want to sit down with a knowledgeable Worcester bankruptcy attorney. Call my office, the Law Office of Jack Morrison, today at 508.852.7800 or reach out via our contact form. Thank you.

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