Worcester Chapter 13 Bankruptcy Lawyer
Experienced Debt Relief Assistance for Massachusetts Consumers
If you do not qualify for Chapter 7 bankruptcy, you still have the option of filing for bankruptcy under Chapter 13. This type of bankruptcy is available to both consumers and sole proprietors of small businesses.
Like Chapter 11, it involves a reorganization plan that will pay off a portion of unsecured debt over time. This form of bankruptcy is a good option for those who wish to retain large assets or prevent foreclosure on a home.
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To fully understand how a Chapter 13 bankruptcy filing would affect you, it is important to consult with an experienced attorney. At Morrison & Associates, I have provided legal assistance to countless individuals and business owners for more than 20 years.
With 5,000 successfully resolved cases under my belt, I am extremely knowledgeable and skilled in evaluating and resolving burdensome debt and credit problems.
How Does a Chapter 13 Bankruptcy Work?
Under a Chapter 13 filing, you will be required to submit to the court a plan that details how you will make payments towards your debt, usually over a three- to five-year timespan. Your income and expenses will determine how much you will be required to pay during that time.
The Chapter 13 Means Test
This is generally calculated according to the “means test,” which determines your disposable income for a Chapter 7 bankruptcy as well. You will, however, be required to make regular payments on your secured debts, such as your home mortgage or car loan as well.
A Chapter 13 bankruptcy allows you to:
- Make up arrears on car or home loans
- Pay overdue tax bills
- Keep interest from being added to tax debt
- Retain property that is non-exempt per Massachusetts bankruptcy exemptions
- Stop a foreclosure
A Chapter 13 filing requires that you continue to have a regular income, some of which will be applied to your creditors via the repayment plan. Once you have fulfilled the terms of your Chapter 13 plan, whatever remains of your dischargeable debt will be forgiven.
What Is Considered Unsecured Debt in Chapter 13?
Several debts are considered nonpriority unsecured, meaning these debts will only be paid if there is money left over after paying all other debts. These debts are typically discharged at the end of the plan.
Dischargeable debts under chapter 13 bankruptcy include
- Credit card debt
- Medical bills
- Certain tax obligations
- Uncollateralized personal loans
- Debt related to negligence or breach of contract
Are Student Loans Considered Dischargeable Debt?
Notably, student loan balances are not dischargeable, despite their classification as non-priority unsecured debts. However, other unusual debts, such as those from unsuccessful past bankruptcy cases, may be eligible for discharge.
It is important to consult with an experienced bankruptcy attorney to determine what debts you have may be dischargeable with a Chapter 13 filing.
Personalized Attention at Morrison & Associates
My approach is based on an attitude of mutual respect and communication with all of my clients. I strive to make a positive difference in the lives of those who entrust me with their financial futures.
"His wealth of experience certainly paid off as the process could not have gone any better than it did. Troy's quick responses to my questions were very much appreciated along the way. I cannot recommend Troy high enough."JL
Person at my side through entire process.Daniel G.
Easy to talk ... helped me feel comfortable about the BK processJanet Sweeney