Legal Question in Credit and Debt Law in Massachusetts

1). You should have enough debt to, at the very least, justify the cost of the filing, and the cost of your attorney (perhaps $2500.00). You also need to consider, in that calculus, that you can only file every seven years, as well as your likelihood of being able to pay off your existing debt. If you are not too deeply indebted, a Massachusetts attorney may be able to negotiate with your creditors.

2). The bank would have to seek a judgment for the deficiency on the collateral. Whether they are able to do that, or whether it would be worthwhile for them to do that is an open question, particularly because they would first have to sell the car, and then realize the deficiency. As perhaps you understood from your question in 1) above, a bankruptcy could vitiate this debt.

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