What are the benefits of a Chapter 7 bankruptcy case

There are 2 types of personal bankruptcy cases. The first is a Chapter 13, which is not so much a way to get out of all of your debt, but rather, a way to reorganize and pay back your creditors to the extent you can. The other is a more traditional bankruptcy, which is a Chapter 7.

In a Chapter 7 case, if you have no assets worth more then the law allows, and your income falls below the median income in your state, you have the ability to get rid of all of your unsecured debt. This includes all credit cards, medical bills, personal loans, even taxes that are over 3 years old.

In addition to eliminating your debt, you also have a 90 period where all law suits and even foreclosures or evictions are stayed during the bankruptcy case.

Finally, in a Massachusetts Chapter 7 case, you do get to keep your home, so long as it is worth less then $500,000 in equity, after the mortgage would be paid in full.

If you think that you may be a candidate for bankruptcy and would like more information, contact the lawyers at the Phillips Law Offices today at 781 595 3800 or use the email form below:

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