Legal Question in Bankruptcy in Massachusetts

We have massive credit card debt ($75,000)that we have been trying to pay down over the past few years. I am 55 yrs old & my husband is 58 yrs old. I am employed full time and earn $68,000 annually. My husband is self-employed (handyman) and earns $45,000 annually. However his work is sporadic. He is currently without work at the moment. We are not delinquent on any of our credit cards, but have only been able to pay minimum payments. We could be in trouble shortly.

Our first mortgage is paid off, but we have an equity line of credit with a balance of $39,000 that we took out to help pay college costs. We believe our house's value to be approximately $325,000 in today's market.

Could we possibly be eligible to claim bankruptcy? My husband wants to take out an equity loan to pay off the credit cards. I am interested in someone elses thoughts on which direction to pursue given the fact that credit cards are unsecured loans.

Thank you for your time.


Asked on 6/12/10, 4:24 am

2 Answers from Attorneys
John Harmon The Law Office of John W. Harmon

You may be eligible for a bankruptcy. How many people live in the home? Do you have a homestead? Since you seem to have combined made a decent amount of money, you most likely qualify for a chapter 13. But with out all the facts, it is impossible to determine.

If you have any further questions feel free to contact me.

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Answered on 6/12/10, 7:42 am
David Baker Law Office of David Baker

There is no special "eligibility" requirement to file a bankruptcy petition. Which chapter of the bankruptcy code is right for you depends on some facts not stated in your question. For example, if you earned more than the median income for Massachusetts over the last six months, you might be required to file a chapter 13 case. Otherwise you might be able to file a chapter 7 case. Since you have only a small mortgage, you MUST record a homestead declaration at the Registry of Deeds if you haven't already, and it must be done before you file. It is not a good idea to file a bankruptcy case without a lawyer, so look for a bankruptcy lawyer near you or visit my website at bostonbankruptcy.org. Best wishes.

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Answered on 6/12/10, 8:23 am


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