Filing For Chapter 13 In Massachusetts

Filing for bankruptcy in Massachusetts, involves the submission of different forms and schedules. Individuals who are reeling under debt and cannot repay the debts can file for bankruptcy to have the debts discharged.

Chapter 13 in Massachusetts

In Massachusetts most individual debtors file for bankruptcy either under Chapter 7 which is often referred to as liquidation or Chapter 13 which is also known as the wage earner’s plan. In a Chapter 13 bankruptcy, the debtor makes payments in accordance with a court approved payment plan.

Documents

In Massachusetts, you must file your Chapter 13 petition in the bankruptcy court that has jurisdiction over your place of residence. Along with your petition, you must submit a statement of your financial affairs. You must also submit schedules of your assets and liabilities, your current income and expenses and if you unfulfilled contracts and unexpired leases, if any. You must details of your income and monthly living expenses including shelter, taxes, utility, clothing, transportation, medical expenses, etc. Once you file your Chapter 13 petition, your creditors can no longer contact you for their dues or take steps to collect their dues. This is due to the automatic stay that comes in to operation on the filing of a Chapter 13 petition. Once your petition is filed, an impartial trustee will be appointed. The main duty of the trustee is to collect payments according to the plan from you and to distribute the payments amongst your creditors.

Plan and Discharge in Massachusetts

In Massachusetts, your payment plan must have details of how you intended to pay off each of your debts. You must submit the plan to the court and start making payments within thirty days from the date of submission if the court approves your plan. You must make the payments to the trustee. Generally Chapter 13 payment plans have a 3 year duration but the bankruptcy court can grant you up to 5 years to make the payments. If you successfully make all the payments as per your payment plan, you will receive a discharge. If reasons beyond your control prevent you from making payments as per the payment plan, you can request the court for a hardship discharge. A Chapter 13 discharge will discharge most debts except tax debts, child support, alimony, etc.

Getting Legal Help

Consult with an experienced bankruptcy attorney if you are considering filing a Chapter 13 bankruptcy in Massachusetts. The attorney can file the forms and schedule and assist you prepare a payment plan based on your available resources.

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