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Chapter 13 Archives

Student loan debt may be hard to get rid of

The Federal Reserve chair acknowledges that there is little he can do to help student loan borrowers in Massachusetts and elsewhere in the United States. However, he did say in testimony to the Senate Banking Committee that he wasn't sure why student loan debts couldn't readily be discharged in bankruptcy. He also said that student loan debt could have a negative impact on a person for his or her entire life.

Survey of over 1,000 adults shows lifelong expectation of debt

Most people in Massachusetts live with some form of debt, whether it be from credit card bills or home loans. A survey of 1,114 people across the nation conducted by produced a pessimistic view about people's expectations of ever escaping debt. Large majorities of respondents across all age groups expected to never achieve a debt-free life.

Changes to bankruptcy rules

Massachusetts creditors and debtors alike should know about the modifications made to the Federal Rules of Bankruptcy Procedure. The changes, which became effective on Dec. 1, 2017, pertain to Chapter 13 bankruptcy cases and can impact creditors who have judgment liens and secured and unsecured claims against the debtors in bankruptcy.

National Chapter 13 form not a big hit

Although a new national Chapter 13 plan form went into effect on Dec. 1, Massachusetts residents may not have to worry about using it. This is because 81 of the 94 judicial districts decided that they aren't going to use the national form. Instead, they are going to use a local form. This is allowable under Rule 3015, which states that the official form must be used unless a local one has been established.

Changes in bankruptcy rules

Massachusetts residents who are filing for Chapter 13 bankruptcy should be aware of the new bankruptcy rules that became effective on December 1, 2017. The changes include modifications to federal rules regarding proper bankruptcy procedure and a new plan form.

Steps to getting a mortgage after bankruptcy

Bankruptcy does not permanently prevent people in Massachusetts from getting a home mortgage. The passage of time and a diligent effort to rebuild credit could allow someone to finance a home purchase. As a general rule, people need to wait two to four years after bankruptcy before expecting a lender to even consider a mortgage application. The waiting period begins from the date of bankruptcy discharge or dismissal.

Lowest bankruptcy levels in 10 years

Although consumer confidence in Massachusetts could be boosted by statistics indicating low levels of bankruptcy filings in the last year, it is important to have a balanced view of the data. The Administrative Office of the United States Courts has reported that the most recent fiscal year reflected the lowest number of bankruptcies filed in a decade. At the same time, the figures suggest that the decline in bankruptcy filing rates was the lowest since 2011.

Getting rid of the debt limits for Chapter 13 bankruptcy

Minnesota residents who have substantial debt but do not do not qualify for Chapter 13 bankruptcy due to its debt limits may soon become eligible if some bankruptcy experts get their way. Many legal practitioners support a statement made by a bankruptcy judge at a meeting of the American Bankruptcy Institute Commission on Consumer Bankruptcy who stated that the debt limits for Chapter 13 should be modified or removed.