As a general rule, Massachusetts residents with student loan debt cannot have their balances discharged in bankruptcy. The reason is that there was a fear that students would try to have their debts discharged after receiving their degrees. However, if a person passes the "Brunner Test," a student loan balance may be wiped away in bankruptcy.
People filing for bankruptcy in Massachusetts understand that they must disclose financial information for review by the court's trustees. An attorney in another state, however, ran into an unsettling request for the login and password information for the PayPal, Amazon Prime and eBay accounts of his bankruptcy client.
Massachusetts residents who are seeking a fresh financial start by filing for Chapter 7 bankruptcy often have questions about how much of their personal assets will be protected by the courts. A Virginia bankruptcy court decision provides some insight into the inner workings of how courts treat real estate assets while offering debt relief. In this case, the appointed trustee reported that the debtor had two homes.
Dealing with debt can be an overwhelming experience. Massachusetts residents often find ways to address debt on their own. However, this is often a complex and difficult step to take. Because reducing spending and saving money is not always possible, individuals struggling with debt problems should gain an accurate picture of their situation and ways to effectively resolve it.
When financial problems strike, Massachusetts residents are oftentimes overwhelmed by the situation. When debt starts to add up, it tends to be the only thing an individual can think about. And, then debt collectors start to call, and no matter how hard debtors try they cannot get caught up financially. In these predicaments, it can be helpful to take steps to gain a fresh financial start.
Massachusetts residents who are struggling with debt often find it a lonely and stressful experience. It can be hard to rely on friends for support when you are too embarrassed to talk about the situation. And creditor harassment only makes things feel worse. Constant phone calls and threatening letters from credit card companies, debt collection agencies and others make a person afraid to pick up the phone or open the mail.
People who file Chapter 7 bankruptcy are often concerned about whether they will be able to keep their automobile after filing. Most people in Massachusetts rely on their cars to get to and from work, and losing the car can be a real hardship.
Struggling with debt on a daily basis is extremely stressful. The level of anxiety increases when creditors call constantly and make ominous threats. Massachusetts consumers should keep in mind, however, that there are laws in place to prohibit abusive conduct by creditors attempting to collect on a debt. The Consumer Financial Protection Bureau, established in the wake of the Great Recession, is charged with enforcing many of these laws.
When a Massachusetts resident consults an attorney about filing personal bankruptcy, one of the first decisions that must be made is whether to file under Chapter 7 or Chapter 13 of the Bankruptcy Code. For many debtors the decision will be made for them by the Chapter 7 means test; if their monthly income is above the state median and they have the means to enter into a repayment plan under Chapter 13, they will not be eligible for Chapter 7.
For many Massachusetts residents struggling with debt, filing for Chapter 7 bankruptcy is the best way to get a fresh financial start. But, not everyone is eligible for Chapter 7. To file for Chapter 7 a debtor must satisfy a means test.