Experts and Columnists

Top 5 reasons people file bankruptcy:

1. Eliminate the Legal Obligation to Pay Many of Your Debts.

This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start.

2. Stop Foreclosure on Your House and Allow You to Effectively Make Payments to Catch up on Missed Payments of Your Mortgage.

If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind).

3. Prevent Your Car or Other Property From Being Repossessed.

Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company.

4. Reduce or Even Eliminate High Medical Bills.

Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 Bankruptcy can greatly reduce the amount of medical bills.

5. Recent Loss of Employment.

Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy.

Call the Law offices of Mark E. Archer for your free consultation!

Law Offices of Mark E. Archer

5 Fletcher Street, 2nd Floor

Chelmsford, MA 01824 

Office: 978-250-5859

Fax:    978-250-5860

mark@archer-lawoffices.com

GOT DEBT? DUMP YOU DEBT NOW!

People get overwhelmed with debt for a number of reasons. For some, it may be because they found themselves in circumstances beyond their control. For others, it might have been plans made that were within their control, but things did not go as planned.  And for many, it may be a little of both.   For almost everyone, the deteriorating economy is pushing more and more people into financial conditions they never predicted.

Whatever the reason, it leaves many feeling helpless and alone.  There is also the confusion of simply not knowing where to turn and what to do.  It is important to know that there are options, there are choices, and there is hope. Despite the sweeping changes to the US Bankruptcy Code in 2005, relief is still available.

Dealing with the debt has been stressful enough. Our job is help our clients through the bankruptcy process and get them moving forward again.

Personal Bankruptcy

Changes in expenses, rises in energy costs, and increasing monthly mortgage payments, a sudden job loss or family health crisis can hurt one’s bottom line. Sometimes just one can lead consumers to unmanageable debt. And with the bill collectors and their lawyers in hot pursuit it can make a tough situation even tougher.

We bring our deep knowledge of bankruptcy law as well as extensive experience in the U.S. Bankruptcy Courts to help our clients to make informed decisions. Successfully guiding our clients through the bankruptcy process is our goal.

Generally, there are two bankruptcy Chapters consumers use the most: chapter 7 and chapter 13, although some consumers can still use chapter 11.

Before reading about these chapters, it is important to know about the protections afforded by any bankruptcy chapter: the automatic stay. When a bankruptcy petition is filed, Section 362 of the US Bankruptcy Code imposes a stay on all collection activities. Foreclosures must stop in their tracks; automobiles cannot be repossessed; and collection activities must cease. While the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made some significant changes to Section 362, the protections are still there for most debtors.

Chapter 7

A Chapter 7 bankruptcy, often referred to as a “straight bankruptcy,” is liquidation.  In this chapter, the debtor files a petition with the court, listing his or her debts, expenses, assets and income. Any property that is not exempt from bankruptcy is liquidated (i.e., sold off) to pay off the debts. If the debtor has no assets, the debts are simply wiped clean through a discharge.

At the Law Offices of Mark E. Archer we specialize in Chapter 7 Debt Liquidation. 

What are the consequences of filing for bankruptcy?

Depending on a debtor's financial situation and reasons, filing for bankruptcy protection maybe the right thing to do! The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Those considering bankruptcy should be aware of the following:

1.      Filing for bankruptcy protection is not free. How much does it cost?

The filing fee for a Chapter 7 is $299.00

The filing fee for a Chapter 13 is $274.00.

2.      Not all debts are dischargeable. Ex: Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted, if you fail to keep payments current. Spousal and child support obligations and most tax debts are not dischargeable.

3.      Fraudulent information or acts by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense.

What are the different "chapters" in a bankruptcy?

Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property as exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership's or corporation's debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.

Chapter 13 is the debt repayment chapter for individuals with regular income. It is not available to corporations or partnerships. Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future income. Each chapter 13 debtor proposes a repayment plan which must be approved by the court. The amounts set forth in the plan must be paid to the chapter 13 trustee who distributes the funds for a small fee. Many debts that cannot be discharged can still be paid over time in a chapter 13 plan. After completion of payments under the plan, chapter 13 debtors receive a discharge of most debts.

Do I need an attorney to file for bankruptcy?

While it is possible to file a bankruptcy case "pro se," that is, without the assistance of an attorney, it is extremely difficult to do so successfully. Hiring an attorney is recommended. The court is not able to give legal advice or help you fill out the forms. For more information contact: The Law Offices Of Mark E. Archer @ 978-250-5859

By: Mark E. Archer

What is bankruptcy?

Bankruptcy is a way for people or businesses who owe more money than they can pay right now (a "debtor") to either work out a plan to repay the money over time under Chapter 11, 12 or 13, or for most of the bills to be wiped out ("discharged"), as in a chapter 7 case. The Bankruptcy Code provides that creditors must stop all collection efforts against the debtor when the bankruptcy petition is filed. You will immediately be protected from your creditors.

At the Law Offices of Mark E. Archer we specialize in Chapter 7 Debt Liquidation.