Massachusetts Chapter 7 Bankruptcy

Debtors should be aware that there are several alternatives to chapter 7 relief our Boston Bankruptcy. For example, debtors who are engaged in business, including corporations, partnerships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.

Chapter 7 Bankruptcy

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13 Bankruptcy. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors.
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets.Individual debtors with primarily consumer debts have additional document filing requirements.Worcester Bankruptcy They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.Id. A husband and wife may file a joint petition or individual petitions.

Know more information visit our massachusetts bankruptcy center.