Before filing for bankruptcy in Massachusetts, you need to take a few important steps that will help you move forward. Some of these steps are required by law, and some are optional, but all will make the process of discharging your debts go more smoothly.
Massachusetts Required Pre-Bankruptcy Credit Counseling
In Massachusetts, you must complete the required pre-bankruptcy credit counseling before you file your bankruptcy case. You can choose from different organizations that offer the credit counseling course, but the one you choose must be approved by the U.S. Trustee for Massachusetts bankruptcy filers. Make sure to keep the completion certificate, because you’ll need it to file your case. In addition, you’ll be required to complete a debtor education course after you file and before you can receive a bankruptcy discharge.
Gather Your Financial Documents
Before you file for bankruptcy, you’ll also need to gather your financial documents. You’ll need the documents to get a clear picture of your current income and debt situation. In addition, the documents will help to assess whether you can file for Chapter 7 or 13 (or Chapter 11 if it’s a business filing). To file for Chapter 7, your income must be less than the Massachusetts median, or if not, you must pass the “means test”. The means test involves comparing your disposable income to your debt to determine whether you have enough disposable income to make regular payments on your debt. You’ll need your financial documents to make this determination.
For your first meeting with a Daigle Law Office bankruptcy lawyer, we recommend bringing the following documents:
- A list of your bills and debts
- A list of your assets, such as a house and a car
- Your last paystub, showing your year-to-date gross income
- Tax returns for the last two years
- Any recent mortgage or car payment statements
- If you’re self-employed, a list of your income and expenses for the last 6 months
Get started gathering these financial documents now so you come to our meeting prepared.
Plan Your Exemptions
In addition, we’ll help you plan your exemptions before you file for bankruptcy. Many pre-bankruptcy filers are worried about losing their homes, cars, or other important possessions. Exemptions allow you to protect important property from sale by the bankruptcy trustee to the extent possible under the law. Planning the best use of your exemptions is an important part of working with our lawyers. Massachusetts has its own set of exemptions in its laws, but so does the federal bankruptcy law. You have to choose whether you want to apply Massachusetts or federal exemptions to your case (you can’t pick and choose between the two). However, if you’re married and your spouse is also filing for bankruptcy, you can “double” the exemptions. As part of our process, we’ll help you decide which set of exemptions best fits your circumstances.
Frequently Asked Questions
My spouse needs to file for bankruptcy – do I have to file too?
Great question, and the answer can be complex. It’s important to do an overall assessment of your finances and personal situation (for example, if you’re getting divorced) to determine whether you should also file for bankruptcy, either jointly or separately. Please reach out to our Massachusetts lawyers for further information about marriage and bankruptcy.
I need to keep my home and car. Is bankruptcy right for me?
At Daigle Law Office, we help people use the Massachusetts or federal exemptions to keep as much property as possible in bankruptcy, including homes and cars. To determine your options, we’ll need to assess your entire financial picture and determine which bankruptcy chapter you qualify for.
Steps to Prepare for Bankruptcy in Massachusetts – We Help You Start on the Right Foot
Are you looking for a dependable, experienced lawyer who can assist with pre-bankruptcy preparation and filing your case? Daigle Law Office’s attorneys can provide experienced Massachusetts bankruptcy assistance. It’s not easy to deal with financial problems, but it’s easier to deal with bankruptcy when you have a strong legal team on your side. Daigle Law Office helps clients dealing with tough situations who need solid, reliable legal advice. To schedule a consultation, call 508-771-7444 or use our convenient Contact Form.
