Our Bankruptcy Lawyer Explains How to Qualify for Chapter 7 in Massachusetts

Our Bankruptcy Lawyer Explains How to Qualify for Chapter 7 in Massachusetts

Bankruptcy Lawyer

Chapter 7 bankruptcy may be an option for you if you have overwhelming debt and an inadequate income to repay it. However, you must meet several qualifications under the provisions of the 2005 Bankruptcy Reform Act passed by President George W. Bush. He enacted this piece of legislature to make it more difficult for people to commit bankruptcy fraud.

Those who have a legitimate need to file for bankruptcy protection can still do so, but they must understand the guidelines and follow all required steps. If you are considering bankruptcy and are confused about what you must do, a bankruptcy lawyer at Kovacs Law Office can help.

Paperwork Requirements

You must present tax returns from the past two years when you file for Chapter 7 bankruptcy. This proves your income. Other required documentation includes current paystubs, bank statements, a list of your debts and living expenses, receipts for any major financial dealings in the past 24 months, documentation for any current loans, your car title, and the deed to any real estate that you presently own. Although gathering these items is time-consuming, you risk delaying your case or bankruptcy ineligibility if you don't produce all of them.

Mandatory Credit Counseling

You are required to undergo credit counseling with an approved financial counselor within six months prior to filing bankruptcy. Attorney Kovacs will provide you with a list of agencies that offer this service. You must complete another financial counseling session after your bankruptcy is discharged.

Massachusetts Means Test

In order to qualify for Chapter 7 bankruptcy, your household income must fall below the state median guidelines. For example, if there are four people in your household, your total income must be less than $105,299 OR you must be able to prove you are unable to afford your unsecured debt payments. If you can't file Chapter 7 bankruptcy then you may be eligible for debt reorganization under Chapter 13.

How to Learn More

We understand that you are under enormous stress with your finances. Our experienced attorneys are available to answer your questions about bankruptcy so you can decide if it's right for you. Please contact us to request a free one-on-one consultation with an attorney at Kovacs Law Office.