What type of bankruptcy should I file in Massachusetts?

Bankruptcy can provide you with a way out of debt payments when you don't have any other option. If you live in Massachusetts and are filing bankruptcy as a private individual (as opposed to as a corporation or large business), then you have two major options when it comes to what type of bankruptcy you file. Those options are:

• Chapter 7
• Chapter 13

Chapter 7

Chapter 7 may be right for you if:

• You qualify, by making below the Massachusetts median income or by passing a means test where you prove you don't have enough disposable income to pay your credit card debt
• You don't have a lot of assets, since assets must be turned over to the court for sale

At the end of the asset sale, the money is paid out to creditors and the remaining balance is then forgiven

Chapter 13

Chapter 13 may be right for you if:

• You make enough money to repay a portion of your credit card debt through a repayment plan that lasts between 3-5 years
• You do not qualify for chapter 7

Ultimately, the best thing to do is to talk to an attorney who can help you to decide what type of bankruptcy is right for you.