Lowell Bankruptcy Lawyer | Lowell Bankruptcy Attorney | What is Bankruptcy? | How to file Bankruptcy | Bankruptcy 101

In the best of times, Lowell, Massachusetts, is a good place to live. The median value of a house in Lowell is about $134,200 and the median household income is around $39,192. The Lowell population of just under 105,167 people boasts a home ownership rate of approximately 43.0%, an unemployment rate of about 4.2%, and less than 15.8% of citizens below the poverty rate. Weekend editions of The Lowell Sun offer highlights of some of the fun and interesting sights to see and things to do in 'The Mill City' (as Lowell is known), such as the American Textile History Museum, Lowell National Historical Park, Perpetual Motion and Jump On In.

Whichever Lowell neighborhood you live in – whether it is Back Central, Belvidere, South Lowell, or some other neighborhood – financial hardship can slowly catch up with you or strike unexpectedly through misfortune, an accident, or personal tragedy. It will make even the best city seem like an unbearable place to live. The Bay State had more than 22,249 bankruptcy filings during the 12-month period that ended on March 10, 2010. Only a small percentage of those filings were for businesses; the majority of these were individual bankruptcy filing and some might have, unfortunately, been your neighbors. The bankruptcy laws involve an intricate set of Bankruptcy Rules and Bankruptcy Laws that even a lawyer that is unfamiliar with them will defer to a competent and experienced Lowell Bankruptcy attorney. You should not try to handle your Lowell bankruptcy alone.

Getting Out of Debt

Bankruptcy tends to be a last resort for most people, but, in fact, it was designed to offer a fresh start from overwhelming consumer debt or business debt. More than 100 years ago, the United States Supreme Court said:

One of the interesting things about bankruptcy law is that it is Federal law and, therefore, the same law applies if you are in Lowell or in New York City. It was designed this way so the law would not change from Lowell to Franklin or from Lowell to Syracuse. In the law, this is called "comity".

Unfortunately, out of desperation, many Lowell residents try everything they can to avoid having to file bankruptcy (and they do so without first consulting a Lowell bankruptcy attorney). They might try a "short sale" of their home to stop a foreclosure or a deed in lieu of foreclosure; they might sign up for debt consolidation or debt settlement; they might return cars to the creditors; or they might even cash out their 401(K) plans.

Sometimes these efforts actually hurt their legal position. Qualifying for a Chapter 7 or Chapter 13 bankruptcy can depend upon particular circumstances, some of which might have been eliminated by a person trying to "fix things" themselves. In other words, by not seeking representation from a Lowell bankruptcy attorney or from a Lowell bankruptcy law firm, you can actually reduce your chances to clear your debt.

It is best to consult with a Lowell bankruptcy lawyer before taking action that might jeopardize your eligibility to file for a certain chapter of bankruptcy.

Bankruptcy Laws Provide Debt Relief for Lowell Residents - Can I File for Bankruptcy?

Bankruptcy can put a stop to the collection agency calls. It can stop a wage garnishment and possibly return some of the money garnished prior to filing bankruptcy. Bankruptcy can stop a foreclosure. It can stop repossessions and protect your property and belongings. Lowell Bankruptcy law can discharge your debts, offer you a fresh start, and allow you to get back on your feet again.

Before You File for Bankruptcy

After You File For Bankruptcy

It seems like there's no hope.

In 2005, the bankruptcy laws were substantially amended. Under the new laws, those who have the ability to pay are required to pay back at least some of their debts (Ch. 13). But for others, if their income is less than the median income (average income) for their state, they may not be required to pay back all of their debts (Ch. 7). This is a very simple explanation — but there are lots of ifs, ands, or buts to consider. There are some debts that cannot be discharged. A Lowell bankruptcy lawyer is essential to help you figure out how you can benefit from the bankruptcy laws and obtain the debt relief you need.

Making a Decision About Filing for Bankruptcy

There are many causes of financial troubles that will bring you to consider bankruptcy as a possible solution. In the Lowell areas, some of the more common causes of bankruptcy are "underwater" mortgages (also known as "upside down" mortgages) expensive medical expenses and insurance; Loss of job and overwhelming personal debt from trying to provide for your family. Loss of income can be everything from losing a job; to business failure and once you fall behind in a competitive market like Lowell and Middlesex County, it can seem impossible to get back up on your feet.

Whether or not a Lowell bankruptcy filing is the best solution for you depends on what you want to accomplish. An experienced Lowell bankruptcy lawyer can review your situation and help you determine the best course of action.

• Are you trying to save your house (stop a foreclosure)?
• Are you trying to save your car (stop a repossession)?
• Are you trying to eliminate debt (bills that you just can't pay)?
• Do you just need a fresh start?

A Lowell bankruptcy lawyer is the best person to help you figure this out. They will review the debts you owe, the property you own, and other financial factors. Then, based on what you want to accomplish, your Lowell bankruptcy lawyer will recommend whether you should file for Lowell Chapter 7 Bankruptcy or Lowell Chapter 13 Bankruptcy (in rare cases, Chapter 11 or Chapter 12).

What are the different "chapters" of bankruptcy and which chapter is right for you?

Bankruptcy is federal law and governed by Title 11 of the U.S. Code. Most people refer to Title 11 as the "Bankruptcy Code." Title 11 is divided into chapters. Chapters 1, 3, and 5 address general provisions, case administration, and creditors, debtors, and the estate; these chapters apply to all bankruptcies.

Chapters 7, 9, 11, 12, 13, and 15 of the Bankruptcy Code address specific types of bankruptcies and govern who can qualify for them and how they will be handled by the Court. Every bankruptcy case filed is done so under one of these specific chapters and so they are referred to as a Chapter 7 bankruptcy case or a Chapter 13 bankruptcy case, etc.

It is not necessary to know or understand these different chapters, because a qualified Lowell Bankruptcy Attorney will review your situation and advise you of which chapter will produce the best results for you.

Chapter 7 Lowell Bankruptcy – The Liquidation Bankruptcy

The basic concept of a Ch. 7 bankruptcy is that the values of all of your belongings are added up, the amounts of any debts you owe and loans against your property (like a car loan) are subtracted, and the amounts you are allowed to keep (exemptions allowed by Massachusetts) are also subtracted. What is left over, in theory, will be liquidated and paid to creditors. For most people, there is nothing left over and they have what is called a "no asset" case; they will keep their property and belongings and their debts will be discharged (forgiven).

A Chapter 7 Middlesex County Bankruptcy Lawyer will also provide advice about whether to keep or surrender assets such as homes, cars, boats, etc. which still have loans against them. Keeping the asset generally means keeping the loan. But a chapter 7 bankruptcy provides Lowell residents with the opportunity to surrender these assets and "walk away" from the loans free and clear.

Chapter 13 Middlesex County Bankruptcy – The “Home Saving / Car Saving” Chapter

A Ch. 13 bankruptcy is used to set up a plan that will allow a Lowell resident to pay back some or all of their debts over a 3 to 5 year period. This is a chapter used by people who have assets they want to protect, have regular income, but may have fallen behind on mortgage or car payments. There are also some debts that cannot be discharged in a Ch. 7, they can be discharged a chapter 13. This is something your Lowell bankruptcy attorney will help you figure out.

Chapter 13 is also used by people who are not eligible for a Ch. 7 bankruptcy.

Chapter 11 Lowell Bankruptcy - Lawyer for Reorganization

There is a common belief that Chapter 11 bankruptcies are only used by businesses. It is correct that Chapter 11 is mainly used by businesses, but it can also be used by Lowell, Massachusetts residents. In some cases, a person might not qualify for Chapter 13 bankruptcy because their debts exceed the Chapter 13 limits. For those people, a Chapter 11 bankruptcy filing may provide an alternative.

A Chapter 11 bankruptcy is known as a reorganization bankruptcy. It is very similar to a Ch. 13 in how the case is filed, but the proposal of how debts will be paid is very detailed.

Chapter 12 Middlesex County Bankruptcy - Family Farmers and Fishermen

A Chapter 12 bankruptcy is very similar to a Chapter 13: the debtor may repay some or all of his debts over a period of time. While a ch. 13 repayment plan can run as long as five years, a ch. 12 will not last longer than three years.

The biggest difference between the chapter 13 and chapter 12 is that the ch. 12 is only available to family farmers or fishermen.

Chapter 9 Bankruptcy - Municipality
Chapter 15 Bankruptcy - Cross-Border Cases

These two chapters of bankruptcy will not apply to Lowell residents as they are not "consumer" bankruptcies. But if you've been watching the news lately and see the reports about towns, cities, counties, and even states that are contemplating filing for bankruptcy, you will begin to hear more about Chapter 9 bankruptcies!

Lowell Bankruptcy Law Firms can review your situation and give you the advice you need to get a fresh start!

Serving clients throughout Eastern Massachusetts, including Andover, Beverly, Billerica, Boston, Bridgewater, Brockton, Cambridge, Chelmsford, Danvers, Dedham, Easton Center, Fall River, Framingham, Franklin, Gloucester, Haverhill, Hingham, Ipswich, Lawrence, Lexington, Lowell, Lynn, Manchester, Marblehead, Marlborough, Medford, Methuen, Milford, New Bedford, Newton, North Attleboro, Norwood, Peabody, Plymouth, Portsmouth, Providence, Quincy, Randolph, Revere, Salem, Tewksbury, Wakefield, Waltham, Wellesley, Weymouth, Woburn, Worcester, areas in the vicinity of Logan Inernational Airport, and other communities in Middlesex County.

Contact a Lowell Bankruptcy Law Firm today for a free initial consultation.

Lowell Bankruptcy Attorney & Middlesex County Bankruptcy Attorney

Financial Problems? Consult a Lowell Bankruptcy Lawyer.

The first step to take when considering bankruptcy is to consult with a Lowell bankruptcy lawyer. Lowell bankruptcy attorneys offer a free initial consultation, so you'll be able to speak with the attorney, discuss your financial problems and explore debt solutions. Bankruptcy laws allow you to eliminate debt and your Middlesex County Bankruptcy Attorney will explain how this can work for you.

You may hear commercials for other methods of debt assistance from individuals or businesses in the State of Massachusetts who are not bankruptcy law firms. Commercials offering debt consolidation, debt settlements, short sales, and credit card debt reduction run on Lowell radio stations such as WCAP, WRKO, WLLH, WWZN, WEEI, WKOX, WBIX, WCEC, WJUL, WKLB-FM, W227AM, WHOB, WXRV, WXKS-FM , WBMX, JMN, WMJX, WCRB, WTKK, WROR-FM, BOS, WGBH and WBUR-FM and Middlesex County television channels such as WFXZ-CA, WNDS, WCVB-TV, WGBH-TV, WUTF, WHDH-TV, WMFP, WBZ-TV, WGBX-TV and WSBK-TV.

Be careful of offers from unlicensed companies. Get your debt advice from a Lowell Debt Relief Law Firm and an experienced Lowell Bankruptcy Attorney.

What if I can't afford a Lowell bankruptcy attorney?

If you're going to be filing a Ch. 7 bankruptcy, some Lowell attorneys will allow you to make payments over a period of time until your fee is paid in full. Most Lowell bankruptcy attorneys will not file your Chapter 7 case until the fee has been paid.

In other chapters of bankruptcy, such as Chapter 13, Chapter 11, and Chapter 12, part of the legal fees are paid before filing the case with the court and the balance of the legal fees are included in the bankruptcy plan. This means you will be paying your attorney fees as part of the plan payments. This is a good option if you cannot afford to pay your attorney before you file your bankruptcy case.

There are set filing fees that are set by the United States Bankruptcy Courts. Currently the filing fees are:

   
Is there a cheaper option than using a Lowell bankruptcy lawyer?

When people find themselves with financial problems — a pending foreclosure, garnishment, and/or repossession — they might wonder whether it would be cheaper to hire a non-attorney such as a bankruptcy paralegal or a bankruptcy petition preparer. While these para-professionals, as they are known, can be skilled and knowledgeable about bankruptcy, they do not have the same legal education and training as an attorney.

A very important reason against hiring a non-attorney is that non-attorneys are prohibited by law from offering legal advice (this is known as unauthorized practice of law). Don't make your financial problems worse by putting yourself in a situation where you have no one to ask questions. Consult with a Lowell Bankruptcy Attorney who will answer your questions and help you reduce or eliminate your debt.

Can I represent myself in a bankruptcy case? Can I represent myself in court?

Yes. But if the cost of legal fees is the main or only reason you want to represent yourself, consider this: when Congress amended the Bankruptcy Code in 2005 they made it more complicated and mistakes now have greater consequences.

A do-it-yourself bankruptcy may seem to save you money at the beginning of the bankruptcy process. But understand that if you make a mistake in your DIY bankruptcy and don't know how to protect your rights, you could lose some of your property in an amount far greater than what legal fees would have cost.

Do you know enough about the bankruptcy system to adequately represent yourself?

Take this simple test — the terms below are some of the most basic terms used in the various chapters of bankruptcy cases. How many do you know or understand?

(  )  Petition
(  )  Debtor
(  )  Co-Debtor
(  )  Automatic Stay
(  )  Exemptions
(  )  Lowell Credit Counseling Agencies
(  )  Proof of Claim
(  )  Means Test
(  )  Disposable Income
(  )  Property Values
(  )  Secured or Unsecured
(  )  Presumption of Abuse
(  )  341 Hearing
(  )  Objections to Claims
(  )  Discharge

Filling out bankruptcy forms.

You might have been told that bankruptcy is nothing more than filling out forms. There are a lot of forms to fill out in a Lowell bankruptcy case, but unlike the 1040-EZ federal income tax form which can be used by individuals with simple financial circumstances there is no "EZ" form in the bankruptcy forms.

Each Lowell bankruptcy case commences with the filing of a petition. Accompanying the petition are schedules, statements, forms, and supporting documentation. Here is a list of documents that would be filed by a Middlesex County resident in a typical Lowell Chapter 7 bankruptcy case:

• Petition (indicating the chapter under which the case is being filed)
• Summary of Schedules and Statistical Summary with Declaration Concerning Debtor's Schedules
• Schedule A - list of Real Property
• Schedule B - list of Personal Property
• Schedule C - Claim of Exemptions (this protects certain property according to amounts set forth in Massachusetts law)
• Schedules D, E, and F - lists of debts
• Schedule G - list of executory contracts and leases
• Schedule H - list of co-debtors
• Schedules I and J - monthly income and expenses
• Statement of Financial Affairs - a detailed list of questions that must be completed by all debtors
• Debtor's Statement of Intention - surrendering, reaffirming, redeeming secured debts?
• Means Test
• Supporting documents: pay advices, bank statements, tax returns, etc. (varies, depending on the local rules of the Bankruptcy Court)

What could go wrong?

An experienced Lowell Bankruptcy Lawyer will give their clients a list of information and documentation that needs to be provided. When a Lowell resident attempts to represent themselves in a bankruptcy case they make these same assumptions, but there is no qualified Lowell Bankruptcy Lawyer to advise them and set them on the correct course. Here are some examples of common mistakes resulting from making assumptions:

► Not listing ALL creditors because you want to keep a particular credit card or you owe money to a relative and want to pay them back or don't want to tell them about the bankruptcy. There is a specific statute in the bankruptcy code regarding penalties for persons who negligently or fraudulently prepare bankruptcy petitions.

► Not listing ALL assets. This is more likely an honest mistake rather than an attempt to conceal assets.

► Not properly listing or applying allowed exemptions.

► Listing your expenses on Schedule J in amounts you feel you the court would approve, rather than the actual amounts spent each month.

► Over-valuing your personal property.

What Can You Do to Help Your Own Bankruptcy Case?

Consult with and hire an experienced Lowell Bankruptcy Law Firm or Attorney.

Even if you read through the federal bankruptcy code and feel you have learned enough about the federal code to represent yourself, there are 94 federal judicial districts that handle bankruptcy matters and each district will have its own set of local bankruptcy rules. Additionally, it is not uncommon for the individual judges within each district to also have their own set of rules for their bankruptcy courtrooms. Middlesex County Bankruptcy Attorneys are experienced with the local rules of the bankruptcy court and the bankruptcy judges.

Start putting together an accurate valuation of your property.

It can be difficult to estimate the value of your personal property. The court will want to know the value the item could be sold for as of the date of filing, not what it would cost to replace it. Pawn shops and second-hand stores are good sources for getting property values:   

Get your tax returns filed

If you have had income for the past few years and have not filed all of your income tax returns, you will be required to do so in order to file for bankruptcy. Contact a local tax return specialist for assistance with filing your returns:

Best Choice Tax Services
16 Pine Street Suite 12
Lowell, MA 01851
(978) 275-0096

Ciulla Smith & Dale
59 Lowes Way Suite 402
Lowell, MA 01851
(978) 454-8809

E & E Income Tax
685 Lawrence Street
Lowell, MA 01852
(978) 735-4288

If you are a do-it-yourself tax preparer, then visit the website for the Internal Revenue Service to obtain the necessary tax forms.

What NOT to do:

Don't transfer assets; don't give things away; don't put your spouse's or kids' names on titles; don't sell stuff and put the cash under your mattress. Don't try to outsmart the system. These "creative" financial maneuvers are all covered in questions on one of the bankruptcy forms called the "Statement of Financial Affairs." This bankruptcy form asks for answers about your financial transactions going back 2, 5 and even 10 years!

It's best to speak with a Lowell Bankruptcy Attorney about your situation and receive educated advice about the best course of action you should take. It will also keep you from potentially getting into trouble with the bankruptcy court.

Consult Lowell Bankruptcy Lawyers serving Middlesex County and the Surrounding Areas

Serving clients throughout Eastern Massachusetts, including Andover, Beverly, Billerica, Boston, Bridgewater, Brockton, Cambridge, Chelmsford, Danvers, Dedham, Easton Center, Fall River, Framingham, Franklin, Gloucester, Haverhill, Hingham, Ipswich, Lawrence, Lexington, Lowell, Lynn, Manchester, Marblehead, Marlborough, Medford, Methuen, Milford, New Bedford, Newton, North Attleboro, Norwood, Peabody, Plymouth, Portsmouth, Providence, Quincy, Randolph, Revere, Salem, Tewksbury, Wakefield, Waltham, Wellesley, Weymouth, Woburn, Worcester, areas in the vicinity of Logan Inernational Airport, and other communities in Middlesex County.

Bankruptcy laws are designed to give you debt relief. Contact a Lowell Bankruptcy Attorney for a free initial consultation and learn how you can get help with your financial problems.

Chapter 7 Bankruptcy - Lowell Bankruptcy Attorney

Chapter 7 Bankruptcy is known as a “liquidation” bankruptcy because a Trustee appointed by the court may sell property that you own which is not exempt from debt collection and use the proceeds to pay some or all of your creditors. The truth is, however, that most people who file a Ch. 7 bankruptcy do so because they have high personal debt and little or no equity in any property. Massachusetts law generally prevent owners from losing property because it sets limits of what can actually be taken by the Trustee and sold to pay creditors.

In order to make a determination about your property, you will be required to estimate the current market value of all of your belongings, including real estate, vehicles, boats, bank accounts, and your personal possessions. This is the value for which you could sell these items, not the cost to replace them. Some suggestions for getting property values are:

Chapter 7 bankruptcies are also referred to as "fresh start" cases. This is because at the end of your bankruptcy case, often in 5-6 months, you receive a discharge which can make you completely or partially debt free! Once the judge “discharges” the case, you no longer owe some or all of your debts and most creditors are prohibited by law from attempting to collect these debts or from suing you.

Ch. 7 bankruptcy does not discharge all debts. Most commonly discharged debts include medical bills, credit card debt, and personal loans that are owed to businesses such as these:

Debts that you must still pay after bankruptcy may include taxes owed to the IRS or other tax agencies, past due child support payments or alimony, student loans, personal injury judgments, criminal penalties, debts which you have been court-ordered to pay, and debts not disclosed in the bankruptcy.

Other Debts that May be Discharged in a Chapter 7 bankruptcy:

One of the main reasons Lowell residents will file for Chapter 7 bankruptcy is to be able to 'walk away' from underwater mortgages and car loans they can no longer pay. This is known as "avoiding liens" and is one of the biggest benefits of filing for bankruptcy.

An experienced Lowell Chapter 7 Lawyer will also give advice on certain leases and executory contracts that can be avoided and discharged in a Chapter 7 bankruptcy case.

How do you file for a Ch. 7 Bankruptcy in Lowell – Middlesex County, Massachusetts?

A Chapter 7 bankruptcy can be filed by an individual (a single person, a married couple, or one spouse only), a business partnership in Lowell, or a Lowell - Middlesex County Corporation or other business entity.

If you have previously received a discharge under a Ch. 7 or Ch. 11 bankruptcy, you cannot file for Chapter 7 until eight years after the filing date of the case in which you received a discharge.

You cannot file a Ch. 7 bankruptcy case until six years after the filing date of a Ch. 13 or Ch. 12 bankruptcy if you received a discharge in one of those chapters. There is an exception to this rule: if you made plan payments in your Chapter 13 or Chapter 12 case equal to all or at least 70% of the “allowed unsecured claims,” you would be eligible to file a Ch. 7 bankruptcy case sooner than six years after the filing date.

Credit Counseling

Lowell and Middlesex County residents filing for Chapter 7 bankruptcy must take an approved credit counseling course within 180 days prior to filing their case. There are many approved agencies in the Lowell area, including:

1A Bankruptcy Counseling, Inc.
31 Fuller Pond Drive
Middleton, MA  01949  
(888) 823-4266

American Consumer Credit Counseling, Inc.
130 Rumford Avenue 202
Newton, MA  02466
(866) 826-6924

Disposable Income

For individuals, their income must be below the median income for the State of Massachusetts, which is between $54,161 to $100,462 per year, depending on family size. If your income is above the median for Massachusetts, individuals or married couples must pass the “Means Test.” (The Means Test is not required for business entities that are filing for Ch. 7 Lowell Bankruptcy.)

The means test looks at your gross personal income (or business income) for the past six months reduced by allowed IRS expenses. This adjusted income figure must be below the median for Massachusetts in order for you to qualify to file Chapter 7 bankruptcy.

Even if the result of the means test is that you are over the median, a Middlesex County bankruptcy lawyer can tell you whether there are other circumstances which will still allow you to file a Chapter 7 bankruptcy.

"Presumption of Abuse" in Chapter 7 Cases (Individual Debtors)

If the means test shows that you are over the median income for your area, your case is considered to be a "presumption of abuse." It's a shame Congress chose to use this particular language, because it basically means the debtor is trying to abuse the bankruptcy system. While there are definitely dishonest persons trying to cheat the system, the majority of Lowell residents who file for chapter 7 bankruptcies are hardworking, honest people who find themselves in deep financial trouble. These people need the relief granted by bankruptcy, but sometimes their particular financial circumstances put them on the "wrong side" of the means test results and they cannot qualify for a Chapter 7 bankruptcy (based on the means test alone). It is imperative to contact a qualified Lowell  Chapter 7 Lawyer for assistance!

Basics of a Ch. 7 Bankruptcy Case in Lowell, MA:

Your Lowell liquidation bankruptcy attorney will guide you through these steps:

► Preparing the documents for filing: clients will be asked to provide a variety of records including tax returns for the previous 2 years; pay advices for the past 6 months; bank statements; credit card statements; copies of bills; copies of leases and contracts; titles for homes, trailers, and/or vehicles; a social security card; a driver's license or other identification.

► A determination is made by Lowell Bankruptcy Lawyer and the client of which property to list as exempt (protected in the bankruptcy).

► Credit counseling course is completed (for individuals).

► The case commences when the petition is filed; schedules, statements, forms and supporting documents are also filed. The filing fee is paid.

► Creditors receive notice of the bankruptcy filing.

► Claims are filed by creditors (called "Proof of Claim").

► Meeting of creditors is held (also known as the 341 Hearing).

► Objections, amendments, redemptions, etc., are drafted and filed, as necessary. Your Middlesex County Chapter 7 Bankruptcy Law Firm will know what needs to be filed and when.

► The Trustee will make determinations of how to treat certain debts and liens.

► Discharge of debts!

Chapter 13 versus Chapter 7 bankruptcy filing in Lowell, Massachusetts

You may get more financial help if, instead of filing in Lowell under Chapter 7, if you file for bankruptcy under Ch. 13. For a complete discussion of the benefits of a Lowell Chapter 13 filing, please visit the Lowell Ch. 13 page.

Ch. 7 Bankruptcy Law Firms Serve Lowell and the Surrounding Areas

Serving clients throughout Eastern Massachusetts, including Andover, Beverly, Billerica, Boston, Bridgewater, Brockton, Cambridge, Chelmsford, Danvers, Dedham, Easton Center, Fall River, Framingham, Franklin, Gloucester, Haverhill, Hingham, Ipswich, Lawrence, Lexington, Lowell, Lynn, Manchester, Marblehead, Marlborough, Medford, Methuen, Milford, New Bedford, Newton, North Attleboro, Norwood, Peabody, Plymouth, Portsmouth, Providence, Quincy, Randolph, Revere, Salem, Tewksbury, Wakefield, Waltham, Wellesley, Weymouth, Woburn, Worcester, areas in the vicinity of Logan Inernational Airport, and other communities in Middlesex County.

While the information provided above may be helpful in answering your basic questions about qualifying for a Chapter 7 bankruptcy, it is best to consult a Lowell Bankruptcy Attorney or Lowell Bankruptcy law firm for legal advice about your specific circumstances. Don't rely on your own understanding of bankruptcy laws; trust an experienced Lowell bankruptcy lawyer to review your situation and provide you with the guidance you are seeking.

Chapter 11 Lowell Business Bankruptcy Lawyer & Business Bankruptcy Law Firm

What is a Chapter 11 Business Bankruptcy? Who would file a Chapter 11 bankruptcy in Lowell?

A bankruptcy case filed under Chapter 11 of the U.S. Bankruptcy Code will generally be filed by a Lowell area business, although this chapter is also available to individuals. While a business may choose to file a Chapter 7 bankruptcy (liquidation), it may not file a Chapter 13 bankruptcy (reorganization) because these are reserved for individuals. But it is very common for a business to want to reorganize its debts and stay in business rather than filing a Chapter 7 and liquidating all of its assets. Chapter 11 bankruptcies are available to Middlesex County businesses for this purpose (i.e., staying in business and restructuring the company's debts). Whether you are a small business or a large business, debt can become overriding.

There are some famous Chapter 11 bankruptcy cases filed by some high profile companies: Lehman Brothers in 2008 (during the Wall Street collapse); Washington Mutual Bank which was quickly acquired by Chase Bank; and the Enron bankruptcy which brought to light unlawful accounting practices. It doesn't take unlawful accounting practices to get a business, even a small business, into trouble ... the current economy combined with poor bookkeeping and/or lack of financial planning can cause problems and conceal a looming financial crisis for Lowell businesses.

A business does not have to be completely insolvent before it is allowed to file a Chapter 11 bankruptcy case. Accountants and bookkeepers in the Lowell, Middlesex County, Massachusetts, area can provide invaluable financial support to businesses and provide guidance of when it might be time to seek the advice of a qualified Lowell Chapter 11 bankruptcy attorney. Some Lowell area financial professionals include:

The main reason an individual or married couple would want to file a Ch. 11 bankruptcy instead of a Ch. 13 case is because their debts may exceed the limits allowed in chapter 13 bankruptcy cases. Although similar to ch.13, a Lowell Chapter 11 bankruptcy is much more complicated and requires the advice of a qualified Lowell Bankruptcy Attorney.

Common types of creditors in Lowell, Massachusetts, with whom a person may have very high debts that disqualify them filing a chapter 13 bankruptcy:

Banks and Mortgage Companies such as Bank of New England-North, National Association (61 Merrimack Street, Lowell, Massachusetts 1853) and Butler Bank (10 George Street, Lowell, Massachusetts 1852).

Car Dealers such as Advanced Auto Sales (479 Broadway Street, Lowell, MA 01854) and Advanced Automobile Sales (577 Middlesex Street Front, Lowell, MA 01851).

Jewelry Stores such as Lowell Jewelry & Loan (181 Easy Merrimack Street, Lowell, MA 01852).

The Basics of a Chapter 11 Lowell Bankruptcy:

A qualified Lowell Bankruptcy Law Firm will have the expertise to guide their clients through the Chapter 11 bankruptcy process. Here are the common steps for Chapter 11 cases filed in Lowell and Middlesex County, Massachusetts (but they may vary depending on specific circumstances):

► The case begins when the petition is filed with the bankruptcy court. Middlesex County cases are filed with the Massachusetts Southern Bankruptcy Court located in 1101 O'Neill Federal Building, 10 Causeway Street, Boston, MA 02222, (617) 565-8950.

► The filing fee of $1,000 and administrative fee of $39 are paid.

► Upon filing of the petition and pursuant to Section 1107 of the bankruptcy code, the debtor assumes the responsibilities normally assigned to a trustee (as in a Chapter 7 or Chapter 11 case) and is known as "debtor in possession." This means the debtor may continue to operate the business, including paying employees.

► The debtor in possession also has the responsibility of filing monthly operating reports with the Court and the U.S. Trustee, filing and paying taxes, and creating a plan for reorganization.

► Although the debtor is given the authority to continue to operate the business in the ordinary course of business, the debtor is expected to do so in a manner in the best interest of all concerned. The interest of the creditors is protected by the formation of various creditor committees. These committees will have much influence on the reorganization plan being developed by the debtor in possession.

► A plan is proposed, a confirmation hearing is held, and eventually a plan will be confirmed.

► The plan is implemented.

► Confirmation of the plan can also mean discharge of debts incurred prior to confirmation, but there are many variables including whether the debtor is an individual or a business. Your Lowell Bankruptcy Attorney will advise you on the effects of confirmation of your plan.

Contact a Lowell Bankruptcy Attorney for advice and consultation about filing a Ch. 11 Middlesex County Bankruptcy.

Serving clients throughout Eastern Massachusetts, including Andover, Beverly, Billerica, Boston, Bridgewater, Brockton, Cambridge, Chelmsford, Danvers, Dedham, Easton Center, Fall River, Framingham, Franklin, Gloucester, Haverhill, Hingham, Ipswich, Lawrence, Lexington, Lowell, Lynn, Manchester, Marblehead, Marlborough, Medford, Methuen, Milford, New Bedford, Newton, North Attleboro, Norwood, Peabody, Plymouth, Portsmouth, Providence, Quincy, Randolph, Revere, Salem, Tewksbury, Wakefield, Waltham, Wellesley, Weymouth, Woburn, Worcester, areas in the vicinity of Logan Inernational Airport, and other communities in Middlesex County.

How to File for Bankruptcy in Lowell, Middlesex County, Massachusetts | Bankruptcy Lawyers

Bankruptcy Questions

One of the first questions you'll want to ask your Lowell bankruptcy attorney is, "which chapter of bankruptcy is best for me?" You will likely want an immediate answer, but the truth is that it's not possible to give an answer without first reviewing your financial situation and discussing the goals you want to accomplish with bankruptcy.

There are six basic types of bankruptcy provided for in the Bankruptcy Code, but only three types are commonly used by the average person: Chapter 7, Chapter 11, and Chapter 13. The other three types of bankruptcy cases are for more specific purposes: Chapter 12 is for family farmers and fishermen; Chapter 9 is for municipalities; and, Chapter 15 is for cross-border cases.

You must qualify for the chapter of bankruptcy under which you want to file. There are both time requirements (for those who have filed before and/or received a discharge) and requirements regarding whether a chapter is available to individuals or business entities. A qualified Lowell Bankruptcy Lawyer will answer the question of "Who May Be a Debtor?" and provide you with the advice of the best bankruptcy chapter for your situation.

Jurisdiction and Venue

If you have moved or changed residence during the 180 days prior to filing for bankruptcy, you may have to file in a different bankruptcy court than the court in the city/district where you are currently living. Military personnel who are stationed in one place, but maintain a residence in may also have jurisdiction issues about where to file their case. A competent Lowell Bankruptcy Lawyer will review your residential history and other circumstances and identify the correct bankruptcy court for your case.

Decisions to be made with your Lowell attorney while preparing the bankruptcy case

An experienced Lowell Bankruptcy Attorney will review your situation and advise you on these topics:

• Exemptions (how to apply the exemptions, both federally and/or in your state, available to you and best protect the property you would like to keep after bankruptcy)
  • Massachusetts has specific statutes that provide for certain property to be protected. A Lowell debt relief lawyer will be fully knowledgeable on these property protection statutes.

• Homestead Exemption;
  • 1. Definitions;
  • 2. Homestead protection for elderly or disabled persons;
  • 3. Acquisition and creation of estate of homestead; exemptions;
  • 4. Automatic homestead exemption in absence of a valid recorded declaration of homestead; subordination of automatic exemption to subsequent new loan or line of credit;
  • 5. Declaration of homestead; contents; recording;
  • 6. Use and enjoyment of homestead estate by spouse and minor children during pendency of case filed in probate court; prohibition against disposing of the estate upon order of probate court;
  • 7. Continuation of estate of homestead existing at death or divorce of holder for benefit of surviving or former spouse and minor children; effect of remarriage of surviving or former spouse;
  • 8. Prior mortgages, lien or other encumbrance;
  • 9. Subordination of estate of homestead to mortgage executed by all owners; and
  • 10. Termination of estate of homestead.
• Title II Actions and Proceedings Therein
  • 28. Service; executions in the alternative;
  • 29. Land; personal property;
  • 30. Levy on corporate property;
  • 31. Property liable to execution;
  • 32. Current coin;
  • 33. Bank notes;
  • 34. Property exempt from execution;
  • 34A. Annuities, pensions, profit sharing or retirement plans; insolvency; attachment;
  • 35. Indemnification of officer
• Titile IV Certain Writs and Proceedings in Special Cases
  • 28. Wages and pensions; exemptions; exceptions;

• Lien Avoidance (how to handle any liens against your property; whether or not to redeem or reaffirm liens against property or to surrender property and avoid the lien)
• Executory Contracts and Unexpired Leases (should you assume or keep your agreement for executory contracts and leases or reject them?)

When the decisions have been made and you have provided the required documentation to your Lowell Bankruptcy Lawyer, your bankruptcy forms including the petition, schedules, forms, and statements will be prepared for your review and signature.

Your Lowell Bankruptcy Attorney will also counsel you about which of your debts cannot or might not be discharged by Bankruptcy Court. Consumer Bankruptcy will not get rid of certain debts. Some debts will survive the bankruptcy process. Under the bankruptcy laws, debts that fall into these major categories may turn out to be non-dischargeable unless you can prove an exception exists:

►  Debts you don't list in your bankruptcy filings (11 U.S.C. 523(a)(3)).

► Student loans unless repayment would cause you undue hardship. (11 U.S.C. 523(a)(8)).

► Most federal, state and local taxes (11 U.S.C. 523(a)(1) and any money borrowed on a credit card to
pay those taxes (11 U.S.C. 523 (a)(14)).

► Child support and alimony and debts in the nature of support (11 U.S.C. 523 (a)(5) and 523 (a)(18)).

► Fines or restitution (to the court or victim) imposed in a criminal-type proceeding (11 U.S.C. 523
(a)(7) and 18 U.S.C. 3613).

► Fees imposed by a court for the filing of a case, motion, complaint or appeal or for other costs and
expenses assessed with such filing (11 U.S.C. 523 (a)(17)).

► Debts resulting from intoxicated driving (11 U.S.C. 523 (a)(9)).

► Debts you couldn't discharge in a previous bankruptcy that was dismissed due to fraud. (11 U.S.C.
523 (a)(10)).

There may be a way to get these debts discharged but you absolutely should contact a Lowell Chapter 7 bankruptcy lawyer to discuss whether this is possible for your circumstances. On the bright side, filing for bankruptcy will remove most of the burdens of debt from you. You will then be able to more readily pay any of the debts listed above. Further, some of these debts are negotiable.

Credit Counseling and Debtor Education

Before your Lowell bankruptcy lawyer can file your bankruptcy case, you will be required to complete credit counseling from a government-approved organization. A credit counseling session can take place in person, online or over the telephone and should last about one hour.

The Federal Trade Commission (FTC) has published a helpful brochure with suggestions of how to select a reputable credit counseling agency. It is important to keep in mind that credit counseling must take place before you file for bankruptcy while a second required course, debtor education, takes place after you file. The two courses cannot be taken at the same time.

Local government-approved credit counseling offices in the Lowell area include:

• Lowell Branch, 40 Central Street, Lowell, MA 01852
• Beverly Branch, 100 Cummings Center, Suite 328C, Beverly, MA 01915
• Boston Branch, 31 Milk Street, Suite 515, Boston, MA 02109

Filing the Case — Electronic Filing (CM/ECF)

When your documents have been prepared by your Lowell Bankruptcy Attorney, you will be asked to review and sign them. Bankruptcy courts in the State of Massachusetts use an electronic filing system. Your Lowell bankruptcy lawyer will retain the "wet ink" versions of your signed documents, but will transmit an electronic version of your signed documents to the bankruptcy court.

Property of the Estate

A bankruptcy case commences when the petition is filed with the Bankruptcy Court. Upon commencement of the case, an "estate" is created that includes all of the property and equitable interests owned by the debtor at the time of filing.

After the Case is Filed — the Automatic Stay

As soon as your case is filed, an "automatic stay" goes into effect. This is one of the best protections offered by bankruptcy law. An automatic stay stops wage garnishments; it stops foreclosure actions; it stops repossessions and the sale of property recently repossessed. Your Lowell bankruptcy law firm will contact your creditors to stop any of these actions as soon as your case is filed.

An automatic stay does not last for an indefinite period of time. Creditors may file a motion to have the automatic stay lifted with regards to their claim. Your Lowell bankruptcy lawyer is your best resource for how the automatic stay will benefit your particular financial circumstances.

The Meeting of Creditors (the 341 Meeting)

Bankruptcy law requires that a person filing for bankruptcy attend a meeting of creditors so that the creditors may ask questions about debts and property. This is called the meeting of creditors, or more commonly referred to as the 341 meeting (because of the section of the Bankruptcy Code which requires it). In a typical case, whether it is a chapter 7 or a chapter 13, this is a very brief meeting lasting only a few minutes because most creditors do not attend. If a creditor or creditors attend the meeting, the meeting might last longer but only if the creditors have questions or statements.

The 341 meeting is usually held at the trustee's office or in a conference room type office at the courthouse or some other location. The bankruptcy judge is not present and the meeting is administered by the trustee. (In the majority of cases, most debtors will never appear before the bankruptcy judge as that is only necessary if some sort of objection was raised in the case.)

The meeting room location for bankruptcy cases filed in Middlesex County is:

5 Post Office Square, Suite 325
Boston, MA 02109

Some Lowell area creditors who might attend a 341 Meeting include:

Comfed Savings Bank, F.A.
45 Central Street
Lowell, MA 1852

Rent-A-Center
101 Church Street
Lowell, MA 01852
(978) 459-2500

JCPenney
Northshore Mall
Route 114 & 128
Peabody, MA 01960

Creditors file Proofs of Claims

Your creditors will begin to file documents called Proofs of Claims (except in "no asset" cases). Creditors are required to file these written statements within 90 days after the first date set for the creditors meeting. The claims describe the debt owed by the debtor (person who filed for bankruptcy) to the creditor (person/company filing the claim).

Each claim is reviewed by your Lowell Bankruptcy Lawyer to verify that the claim is accurate. It is not unusual for a company that processes thousands of these claims every day to file a claim in the wrong case. If you believe that a claim filed against you is incorrect, your Lowell Bankruptcy Attorney will file an objection to the claim. If you and the creditor cannot come to an agreement about the claim or its amount, the bankruptcy judge will review the claim and render a decision.
 

Lowell Chapter 7, Chapter 11, Chapter 12, and Chapter 13 Bankruptcy Attorneys serve Lowell and its surrounding areas.

Serving clients throughout Eastern Massachusetts, including Andover, Beverly, Billerica, Boston, Bridgewater, Brockton, Cambridge, Chelmsford, Danvers, Dedham, Easton Center, Fall River, Framingham, Franklin, Gloucester, Haverhill, Hingham, Ipswich, Lawrence, Lexington, Lowell, Lynn, Manchester, Marblehead, Marlborough, Medford, Methuen, Milford, New Bedford, Newton, North Attleboro, Norwood, Peabody, Plymouth, Portsmouth, Providence, Quincy, Randolph, Revere, Salem, Tewksbury, Wakefield, Waltham, Wellesley, Weymouth, Woburn, Worcester, areas in the vicinity of Logan Inernational Airport, and other communities in Middlesex County.

Call a Middlesex County Bankruptcy Law Firm and schedule a free initial consultation.