Legal Question in Bankruptcy in Massachusetts

Re: what happens when you file for bankruptcy

When you file for bankruptcy, you must disclose all of your debts and all of your assets. Most of the time, your assets can be protected and you would not lose them. If you have honestly disclosed all of your debts and assets and are truly unable to pay your debts, or able to pay only a part of them, the court will grant you a "discharge", which releases you from the legal obligation to pay the debts. If you are considering a bankruptcy filing, call me to discuss your situation. 617-367-4260, or send me an email with more information.

Re: what happens when you file for bankruptcy

When you file bankruptcy, a notice goes out to all of your creditors informing them of the filing and the imposition of the automatic stay. The automatic stay prohibits creditors from taking any further action against a debtor or his/her property. Generally, within thirty (30) days of the filing, a section 341 meeting is scheduled. The debtor's attendance at this meeting is required. Also at this meeting would be your attorney and the Chapter 7 trustee appointed in your case. Creditors are entitled to show, but rarely do. At the section 341 meeting, the Chapter trustee will swear you in, confirm your social security number and ask you if your schedules and statement of affairs accurately reflect all of your assets and liabilities. The Chapter 7 trustee will then review your schedules and make such inquiry as is appropriate (ie. if you own a home, how did you determine its value, did you file a homestead). While the anxiety of the meeting is significant, the section 341 meeting usually takes about 5 minutes and is less than daunting in the typical case. After the section 341 meeting, creditors are given an opportunity to object to your discharge of their claims based on fraud or misrepresentation. Once this date has passed, you will receive your discharge. The whole process usually takes about 4 months. Post-discharge, you will begin to receive solicitations for new credit. Within 1-2 years, the typical former debtor will be able to purchase and/or refinance a home. I hope this answers your question.