Applying For Chapter 7 Bankruptcy Massachusetts
When one files for chapter 7 bankruptcy Massachusetts, they provide a list of their assets and liabilities in order of magnitude and then a judge decides whether they can afford to pay their debt or if they should be forgiven. If they make enough money to pay off or have property that can be sold, then they are expected to pay what they owe.
The people who qualify for this procedure are low income individuals who cannot afford to clear their debts and the process takes about 6 months from start to finish. For one to qualify for this process, one must have a business or live in the country. There is a means test that is used to check whether one qualifies for it.
Liquidation is involved in this ruling whereby one’s property is gathered and sold in auction bids in order for creditors to get their money. Once the judge approves the application, then it stays on the credit report for ten years. During that time, most statute of limitations will have passed and so creditors will just forget about the debt.
In this procedure, there are obligations that are not forgivable and these include student loans, mortgages and child support payments. In this case, the creditors who are usually government entities cannot be stopped from pursuing back payments that have not been paid. This procedure should only be used by people who are undergoing extreme hardships.
One’s income is a big determinant on whether one will have the case approved or denied. People who make a lot of money may be asked to file Chapter 13 which gives more time to those who need it. A judge carefully looks at the disposable income that one has and analyzes their monthly expenses to see if they are able to make any payments. If not, they can discharge the debt and command the creditors to never make any calls to the applicant.
Chapter 7 bankruptcy Massachusetts can help one rebuild their credit and start afresh so that lenders can issue them new loans that will help them to buy homes, cars and even get higher education loans. An individual should however try as much as possible and pay off their debts before finally opting for this solution. chapter 7 bankruptcy Massachusetts
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