Massachusetts debtors may gain some relief from their debts through the bankruptcy process. However, there are some types of debts such as tax liabilities that may be mostly nondischargeable. While tax liabilities might be discharged in some situations, the ability to do so is limited.
People living in Massachusetts who are struggling with debt often seek solutions to their overwhelming financial situations. One option is filing for bankruptcy although many people may be unfamiliar with how this process works.
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.
Massachusetts debtors who file for Chapter 13 bankruptcy while possessing a vehicle may be able to keep that vehicle. Filers may also be able to purchase a vehicle after they have filed or after they have been discharged.
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 CreditCards.com 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.
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.
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.
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.
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.
For people in Massachusetts who feel overwhelmed by their debt, bankruptcy may be an option. Making the decision to file for bankruptcy is something that shouldn't be taken lightly. It can provide financial relief to people who are in dire circumstances.