Massachusetts Chapter 13 Bankruptcy: desigbed for you

To be honest, in Massachusetts it is indeed not uncommon for the debtor to own real property (whether a house or the land) jointly with another person who is not filing bankruptcy. A precise example of this would be – if you own your home with your spouse and if your spouse is not filing bankruptcy still you can own real property with your spouse. In this era where Bankruptcy help in Massachusetts is pretty abundant there are situations where a debtor jointly owns property with someone else. Today, we will talk about Massachusetts Bankruptcy filing and the Homestead Exemption.

When one files bankruptcy they are entitled to keep certain types of property up to a certain value. Typically the property you get has been termed as “exempt.” In Massachusetts, if you own a home you are entitled to an exemption in your homestead. Well, as of March 2011, MA residents are typically entitled to an automatic homestead for $125,000. For the uninitiated, if you have less than $125,000 in equity in your home, it is automatically exempt and you can keep your home in a bankruptcy. What if you have more than $125,000 in equity? You simply need to file a document at the registry of deeds in the county where your home is located. This is known as “declaration of homestead.” As a matter of fact - filing this document will increase your homestead and protect the equity in your home up to $500,000.00. Massachusetts Bankruptcy filing offers an array of options and also there are many reasons why the consumer might choose to file for either Chapter 7 or Massachusetts Chapter 13 Bankruptcy. By discussing your situation with the debt relief attorney who is licensed in your state, Chapter 7 Bankruptcy filing can help in relieving the financial stress or even protect against losing property. However a lot of people who are trying to save their homes are still unaware of the fact that Massachusetts Chapter 13 Bankruptcy offers homeowners a lot of options to save their home.

Also, it helps them in reducing the amount owed on their mortgages. Let's take an example - if you have fallen behind on your mortgage payments, Chapter 13 Bankruptcy will allow you to resume your normal monthly payments. This will allow you to set up a repayment plan to repay your arrears over the course of five years. Massachusetts Chapter 7 Bankruptcy can’t help everyone, but there may be options available.

How do you get started?

The first thing you should do is to file a simple, two page form in court, asking for relied under chapter 13. The form is called a ‘petition’ and needs to be signed by all debtors. This is your initial step in the process and this further puts into motion which is called the automatic stay. Well from this point the creditors will no longer bother you. The court will now provide you the ‘docket number’, which is typically a way of saying your case number. This will help to stop the foreclosure proceedings.

The second thing happens around 7-10 days later after filing the petition. You may be required to submit a document known as ‘matrix’. This lists of all your creditors names and addresses to the court.

After submitting your matrix , you need to submit a plan outlining how you propose to reorganize under chapter 13. This plan actually includes your liabilities, income, your assets, monthly expenses, your past financial history and also the evidence that you are capable of fulfilling your financial obligations. Once you have filed your plan you will be able to file amendments as and when necessary.

This content has been taken from: http://www.zimbio.com/Bankruptcy+Service/articles/qegEYPUw_aE/Massachusetts+Chapter+13+Bankruptcy+Homestead?add=True

Bankruptcy Massachusetts: more information

Typically the U.S bankruptcy court has reported that Massachusetts residents have filed over 22,000 bankruptcy applicants from Sept 2009 to Sept 2010 and in fact more than 20,000 applications from Sept. 2010 to Sept. 2011. Well, majority of the US residents then considered filing Chapter 7 bankruptcy, however, over 5,000 people a year qualified and filed for a Massachusetts Chapter 13 Bankruptcy plan. Still, to stop Boston foreclosure on the track it is the best time to ponder on the significance of filing Chapter 7 Bankruptcy. Well, bankruptcy help and bankruptcy filing indeed involves many detailed and complex steps in order to ensure that you have the best outcome to your debt situation.

Still, Bankruptcy Massachusetts stands as the BIG B word hence this is perhaps the best time to seriously think about the popular myths which are associated with the very process of Filing bankruptcy in Massachusetts.

Myth 1: People will know that I have filed for bankruptcy:- this is indeed a popular myth and unless you are a prominent person or a major corporation and the filing is picked up by the media, there is practically no chance of people knowing that you have consulted the lawyers for bankruptcy in Massachusetts. While it's true that bankruptcy is a public legal proceeding, the number of people filing is so massive that very few publications have the space, manpower or inclination to run all of them.

Myth 2: All debts would be wiped off in Massachusets chapter 7 bankruptcy:- There are certain types of debts which simply cannot be discharged, or erased and these includes child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud.

Myth 3: i will lose everything I have:- This is the popular misconception which keeps people who really should file for bankruptcy from doing it.

Myth 4: I will not get credit again- Trust me; it is simply the opposite because after getting Bankruptcy help in Massachusetts It won't be long before you're getting credit card offers again. There are innumerable companies that will provide credit to you," says the Lawyers for bankruptcy in Massachusetts.

Below is a list of just a few of the costly mistakes to avoid:

Never hide assets or debts and doing so could lead to your entire bankruptcy case being denied. Never pay money to family or friends. Well, according to Massachusetts bankruptcy law, you cannot treat family or friends any better than your other creditors. And in case if the Trustee comes to know the trustee can reclaim the money from your family or friend.