Massachusetts consumers could face circumstances in which they cannot pay off their debts in a timely manner. Events such as job loss or accidents that reduce wages could attribute to these circumstances. When this occurs, the consumers could face legal action against them by their creditors. Bankruptcy Lawyers Fall River MA are available to help fight against foreclosure and repossession.
What Chapter is the Right Choice?
Consumers who aren’t sure what chapter to choose should start with the eligibility requirements. The eligibility requirements for chapter 13 is based on the consumer’s income. To qualify for the chapter of bankruptcy, the consumer must possess an income that equate to a larger value than $69,160 annually. The consumer proves their eligibility by providing income statements for the six-month period before filing a claim. If their income is below this value, the consumer may file for chapter 7 only.
What are the Terms of Chapter 13?
Chapter 13 requires the consumer follow a specific plan for paying off their debts. This plan requires them to pay a monthly payment that is based on their total monthly income. The court deducts the consumer’s monthly obligations from this value. The monthly obligations include house payments, utilities, and necessities. Once the value is established, the consumer must submit this value and use all disposable income to pay additional debts. This doesn’t include any debts that were discharged by the judge.
How Does Liquidation Work?
Liquidation or chapter 7 allows the consumer to eliminate their debts by selling off property and assets. The court makes all the arrangements for the process. A trustee places the items on the market and collects the funds from the buyers. They distribute the funds to the creditors according to the settlement value achieved.
Massachusetts consumers who have become delinquent seriously need to take immediate action. This action could include filing for bankruptcy. This opportunity allows the consumer to pay off their debts through court assistance. It also prevents adverse actions such as repossession or foreclosure. Consumers who need to hire Bankruptcy Lawyers Fall River MA should contact the Law Offices of Tara M. George PC for more information today.