Legal Question in Bankruptcy in Massachusetts

Is Chapter 7 an option?

This is little tricky because i also have the possibility of divorce looming but i need to know is Chapter 7, either before or after the divorce is the right option for me. My ''Current Monthly Income'' is approximately $1,000, if my calculations were correct ($4,500 income - $3,500 household expenditures). We currently have an outstanding Mortgage of $158k, with about $30k in equity. The only other asset we currently have is a '99 Camry. I am looking towards Chapter 7 to get out from under a $25k CC balance as well as a $450 Car Lease with 21 months remaining. In addition, my 2 children are about to enter Day Care In September with an expense of $1,500/month. Will i lose my house, or the equity in it, by filing Chapter 7? My wife, despite working part-time, contributes nothing to the monthly expenses, would it be better to wait until after the Divorce?


Asked on 8/13/07, 7:35 am

1 Answer from Attorneys
Richard Ravosa Law Offices of Richard S. Ravosa

Re: Is Chapter 7 an option?

To qualify for Chapter the first part of the means test for a family of 4 you need to gross under $88,179, (considering household income). If you pass the first part of the means test you go no further. If you did not pass other information would be needed to enter into the means test. It sounds like you probably should file before you obtain your divorce, but, other information would be needed. I would be more than glad to talk you at no cost to verify your elibiliity for a Chapter 7 and explain the process and how your equity can be protected thru a homestead. If you have other questions I can be reached at [email protected]

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Answered on 8/13/07, 12:07 pm


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