Legal Question in Bankruptcy in Massachusetts
Bankruptcy Fees
Hello, recently I had asked a question,concerning whether or not I was a candidate for bankruptcy. I received a reply stating that I was, due to my situation. My concern now is that, I'm living from one paycheck to the next and I'm afraid because I don't have the money right now to afford an attorney. I've heard that the law will change soon for Bankruptcy, and my greatest fear is that I won't be able to save enough before then to afford an attorney still. I am 20+ thousand dollars in debt. Before I was put into the situation I'm in I had no problem trying to get it all down. I even went into debt management to help get it down much quicker, but after being put in this situation, monies saved in the bank started decreasing quickly, therefore I had to stop debt management. I'm at a perfect stand still. The situation that I was put in so abruptly, has caused me depression and high blood pressure, both of which I'm taking medication for. This is a worry that is on my mind every day. A bill collector called me and yelled at me one day because he saw where my credit had been in good standing and now the bills can't get paid. He accused me of transfering other bills onto their credit card. I told him that's not true. He made me cry.
1 Answer from Attorneys
Re: Bankruptcy Fees
First, the changes coming on October 17, 2005, may not affect you. Persons whose family income and expenses were under the limits set for October 17 were about 70% of all filers in a recent study of the past two years or so. And that was without the exact numbers determined yet for average monthly family incomes adjusted for inflation. There is also an escape hatch for "special circumstances."
There will be a small increase in filing fees.
What will probably change the most will be the attorney fees for preparing documents and representing debtors in bankruptcy.
The rule of thumb in MA now is if your monthly excess income is more than a few dollars, you may have to file a c. 13 instead of c. 7, and that is definite if the excess income is sufficient to pay 10% or more of the unsecured debt in 3 years. The changes extend the term to 5 years. So no big changes.
My fee for a c 7 is still $750 plus filing fee of $209. I will accept a retainer of $375 to prepare the documents, and the filing fee is due when the papers are ready or you have the money. The balance of my fee is due before the 341 meeting, usually 3-6 weeks after filing.
Unfortunately, a lot of people waste their money on these credit repair scams set up by the credit card industry. And they wait too long to file bankruptcy, so they've spent assets they didn't have to.
Don't wait any longer. If you have to skip eating out or a movie, or drive less, to have the money for a lawyer, the sooner you do it, the sooner your rehabilitation will begin and the harrassment will end.
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