A Fresh Financial Start

If you're feeling overwhelmed by debt, Chapter 7 bankruptcy could be the solution you need to regain financial stability. As the most common type of bankruptcy for individuals and married couples, Chapter 7 provides a way to eliminate unsecured debts and get a fresh start.

Here’s how it works: When you file for Chapter 7, the court appoints a Trustee to review your assets. While some property may be sold to repay creditors, most people who file find that all of their belongings are exempt, meaning they get to keep everything they own.

Debt Discharge: What You Need to Know

The ultimate goal of Chapter 7 is a debt discharge, which legally eliminates your responsibility for most unsecured debts, such as credit cards and medical bills. However, some debts—like child support, alimony, certain tax debts, and student loans—typically cannot be discharged. If you have secured debts, like a mortgage or car loan, you’ll still be responsible for those payments if you wish to keep the property.

Every situation is unique, and our experienced Massachusetts bankruptcy lawyers are here to guide you through the process. If you have questions about which debts can be discharged or want to explore your options, contact us today for a consultation. We’re here to help you take the first step toward financial freedom.

A Path to Financial Stability

If you have a steady income but are struggling with debt, Chapter 13 bankruptcy may offer a structured way to regain control of your finances. This option allows individuals and families to repay a portion of their debts over time—typically within three to five years—based on their income and expenses.

Unlike Chapter 7 bankruptcy, which eliminates most debts outright, Chapter 13 involves creating a manageable repayment plan, known as a Chapter 13 Plan. Your bankruptcy attorney will work with you to develop a plan that fits your budget by subtracting essential living expenses from your take-home pay. From there, you’ll make a single monthly payment to a court-appointed trustee, who will distribute funds to your creditors.

Saving Your Home from Foreclosure

If you’re facing foreclosure, Chapter 13 can be a powerful tool to help you keep your home. As long as you file before the foreclosure sale is finalized, bankruptcy will put an immediate stop to foreclosure proceedings. Through your repayment plan, you’ll have up to five years to catch up on past-due mortgage payments—while still keeping up with your regular monthly mortgage. However, it’s important to note that the court cannot modify your mortgage terms or reduce your monthly payment—that decision remains with your lender.

If you’re feeling overwhelmed by debt but have the ability to repay some of what you owe, Chapter 13 bankruptcy could be the solution you need to move forward with confidence. Our experienced team is here to guide you every step of the way. Contact us today to explore your options.

Filing for bankruptcy can feel overwhelming, but at North Colony Law Group, we’re here to guide you every step of the way. Our goal is to make the process as straightforward and stress-free as possible, helping you get the fresh financial start you need.

• Step 1: Your Free Consultation: During your initial consultation—typically lasting 15-20 minutes—we’ll ask you some key financial questions to determine whether bankruptcy is the right option for you. We’ll also conduct a means test to see if you qualify for Chapter 7 or if Chapter 13 might be a better fit for your situation. This consultation can be done over the phone for your convenience.
• Step 2: Gathering Information: Once you decide to move forward with us, we’ll start gathering the necessary details to prepare your bankruptcy petition. You’ll provide copies of recent paychecks, bank statements, and tax returns, as well as complete a questionnaire listing your assets, debts, income, and expenses. Using this information, we’ll prepare a draft of your petition for you to review and make any necessary corrections. At this stage, you’ll also complete a mandatory credit counseling course, which can be done online or over the phone.
• Step 3: Filing Your Bankruptcy Petition: After you’ve reviewed and finalized your petition, we’ll schedule a time for you to visit our office to sign it. Once signed, your attorney will officially file your petition with the Bankruptcy Court. At this point, the court will assign a Trustee to your case and schedule what’s known as a Meeting of Creditors. The good news? Once your case is filed, creditors are required to stop all collection activities—including foreclosure proceedings.