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July 2016 Archives

Chapter 7 and Chapter 13 differ in treatment of secured debt

Massachusetts residents filing for personal bankruptcy must choose whether to file Chapter 7 or Chapter 13 bankruptcy. For many, Chapter 7 is not an option because their income is too high for them to qualify. But, those who qualify for both should look at the advantages and disadvantages of each.

Future Massachusetts Senator did influential bankruptcy research

Since 2012, Elizabeth Warren has been one of Massachusetts' two U.S. Senators. Earlier in life she was a law professor, focusing on bankruptcy law and consumer economics. In the 1980s, while teaching bankruptcy law at the University of Texas at Austin Law School, the future Senator conducted some groundbreaking research on personal bankruptcy.

How much must a debtor pay creditors in a Chapter 13 bankruptcy?

Many people in Massachusetts who choose to file personal bankruptcy do not qualify for Chapter 7 because their income is too high. For these individuals, Chapter 13 is another option to consider. Unlike Chapter 7, in which all of the debtor's debts are eliminated, in Chapter 13 the debtor enters into a payment plan under which they repay a portion of their debt over a three or five-year period.

Credit card debt does not have to be a lifelong problem

Credit card debt is a major problem for many Americans, including residents of Salem. Whether the debt resulted from overspending, unplanned purchases or unexpected emergencies, its existence can cause individuals to feel both financial and emotional stresses. Overwhelming debt on credit cards can sometimes feel insurmountable and those who have suffered under its pressures may have felt as though they would never be able to climb out of their credit-based troubles.