While you never thought it would come to this, you’ve found yourself in a situation where you’re seriously thinking about calling a bankruptcy lawyer and finding out if this is the right step for you. Since you don’t know a lot about bankruptcy law in Fall River, MA, you need advice from a lawyer. During that first meeting, you’ll learn a great deal about how the current laws work. Here are two key facts that the lawyer will want to go over with you carefully.
There Are Two Options for Personal Bankruptcy
Current bankruptcy law in Fall River, MA allows for two types of personal bankruptcy. A chapter 7 bankruptcy would require that you surrender any assets deemed to be non-exempt to the trustee. You can keep assets the court considers exempt, like the car you drive to and from work and the home where you live. If one those non-exempt assets are sold, those funds will be divided among your creditors and the court will discharge the remainder of your debt.
If you don’t qualify for chapter 7, chapter 13 is a possibility. This approach places you under the protection of the court while you repay your debts over a three to five-year period. All payments go to the court; the trustee distributes the payments to your creditors. If there are any debts left at the end of the bankruptcy term, the court discharges them.
Bankruptcy Is Not an Option for Everyone
As the bankruptcy lawyer will explain, not everyone qualifies for either form of personal bankruptcy. The results of the means test required by bankruptcy law in Fall River, MA must confirm that you do not have sufficient assets to continue paying your creditors according to the current arrangements. The means test takes into account your income, basic living expenses, and other important factors.
Filing for bankruptcy is not to be taken lightly, but it is often the most practical way to deal with debt that’s out of control. Talk with a lawyer today and find out if this solution would work for you. It could be the fresh start that you need to get your life back on track.
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