1242 Main St Springfield, MA 01103, USA|
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Practices And Faq
Areas of Practice for Mark A Papirio in Springfield, MA
BANKRUPTCY
BRINGING DEBT RELIEF TO THOUSANDS OF PEOPLE/HELPING PEOPLE KEEP THEIR HOMES
D.C.F. CASES
HELPING FAMILIES STAY TOGETHER/REUNITE/ADOPT/OBTAIN GUARDIANSHIP
APPELLATE REPRESENTATION
PROVIDING APPELLATE REPRESENTATION SINCE 1993
Bankruptcy FAQ
Are there different kinds of bankruptcy?
The law provides for four different types of bankruptcy that an individual might use: Chapter 11, called "Reorganization" is usually for businesses or individuals with very large debts. Chapter 13 is a repayment plan for some or all of your debt, over a period of years. Chapter 12 is reserved exclusively for fishermen and family farmers. Chapter 7, called "Liquidation", requires one to give up property that is not "exempt", although the vast majority of people keep all of their property. Very valuable property, or property subject to liens which can't be paid or avoided, could be at risk.
Can I file bankruptcy without an attorney?
A person has the right to represent him or herself in any legal action. The bankruptcy laws are complex however, and improper use of exemptions could put your property at risk. A petition preparer may assist you in filling out forms but may not give you legal advice. If you decide to proceed with an attorney, ask a trusted friend or your family attorney for a recommendation. Remember that, as with any service, those charging the least are not necessarily the best, and your choice should be given some serious thought.
Can my creditors garnish my wages?
While some collection agents may threaten to garnish your wages, it's important to keep in mind that they cannot even begin this process until after they have sued you and obtained a judgment against you. Moreover, both state and federal laws protect the great majority of your wages from garnishment. If a creditor has taken the necessary steps and actually begun taking a portion of your wages, bankruptcy will stop that process; temporarily upon filing, and permanently upon your obtaining a discharge.
Why can't my debt consolidator help me deal with all of my bills at once?
Reputable debt consolidation firms have helped many people get themselves back on track. Unfortunately, you cannot force creditors to participate in such a plan. There are also folks out there who are charging more than they should be for helping you. If you have disposable income after your necessities are paid for, but are still overwhelmed by creditors, you might consider Chapter 13 bankruptcy. In Chapter 13, the filer submits a plan to deal with their debt. Generally, unsecured creditors must participate in your plan if they wish to continue to be paid. Chapter 13 may allow one to deal with these creditors on more favorable terms than outside of bankruptcy.
Will I still owe anything after a bankruptcy?
Bankruptcy can be instrumental in getting you a fresh start. It's not a magic wand however, and cannot help with certain things. Alimony, maintenance or support for a spouse or child are not dischargeable. Neither are student loans, most taxes, and money borrowed fraudulently or under false pretenses. Most criminal fines, penalties and restitution orders are non-dischargeable, as are debts incurred through drunk driving. With a secured debt, such as a mortgage or car loan, bankruptcy wipes out your personal obligation to pay the debt, but the creditor still has the right to take their property back if you don't continue to pay them.
The law provides for four different types of bankruptcy that an individual might use: Chapter 11, called "Reorganization" is usually for businesses or individuals with very large debts. Chapter 13 is a repayment plan for some or all of your debt, over a period of years. Chapter 12 is reserved exclusively for fishermen and family farmers. Chapter 7, called "Liquidation", requires one to give up property that is not "exempt", although the vast majority of people keep all of their property. Very valuable property, or property subject to liens which can't be paid or avoided, could be at risk.
Can I file bankruptcy without an attorney?
A person has the right to represent him or herself in any legal action. The bankruptcy laws are complex however, and improper use of exemptions could put your property at risk. A petition preparer may assist you in filling out forms but may not give you legal advice. If you decide to proceed with an attorney, ask a trusted friend or your family attorney for a recommendation. Remember that, as with any service, those charging the least are not necessarily the best, and your choice should be given some serious thought.
Can my creditors garnish my wages?
While some collection agents may threaten to garnish your wages, it's important to keep in mind that they cannot even begin this process until after they have sued you and obtained a judgment against you. Moreover, both state and federal laws protect the great majority of your wages from garnishment. If a creditor has taken the necessary steps and actually begun taking a portion of your wages, bankruptcy will stop that process; temporarily upon filing, and permanently upon your obtaining a discharge.
Why can't my debt consolidator help me deal with all of my bills at once?
Reputable debt consolidation firms have helped many people get themselves back on track. Unfortunately, you cannot force creditors to participate in such a plan. There are also folks out there who are charging more than they should be for helping you. If you have disposable income after your necessities are paid for, but are still overwhelmed by creditors, you might consider Chapter 13 bankruptcy. In Chapter 13, the filer submits a plan to deal with their debt. Generally, unsecured creditors must participate in your plan if they wish to continue to be paid. Chapter 13 may allow one to deal with these creditors on more favorable terms than outside of bankruptcy.
Will I still owe anything after a bankruptcy?
Bankruptcy can be instrumental in getting you a fresh start. It's not a magic wand however, and cannot help with certain things. Alimony, maintenance or support for a spouse or child are not dischargeable. Neither are student loans, most taxes, and money borrowed fraudulently or under false pretenses. Most criminal fines, penalties and restitution orders are non-dischargeable, as are debts incurred through drunk driving. With a secured debt, such as a mortgage or car loan, bankruptcy wipes out your personal obligation to pay the debt, but the creditor still has the right to take their property back if you don't continue to pay them.
My credit card company attached my house. Does bankruptcy help with that?
An attachment or execution (both referred to as liens by the bankruptcy code) issued from a court can be removed from your house if it prevents you from using an exemption that you're otherwise entitled to. The court may also allow you to remove judicial liens occurring within ninety days of your bankruptcy filing, assuming the lien improved the creditor's right to repayment. Liens obtained by other means, such as tax liens, are generally not removable without some arrangement being made with the creditor.
What will I be allowed to keep after bankruptcy?
People filing bankruptcy must exempt their property, choosing from a slate of exemptions provided either by Massachusetts or a slate under federal law. Our state's exemptions allow you to keep $125,000 in home equity (more with a recorded homestead), $7,500 towards a car, $2,500 in cash or savings. There are also amounts allowed for furnishings, clothing and other necessary items such as retirement plans, and a 'wildcard' that can be applied to anything. The federal exemptions have different amounts for these items and which set best suits you is reviewed by you and your attorney prior to filing.
How will bankruptcy affect my credit?
The answer to this is not entirely clear. The act of filing a bankruptcy can remain on your credit history for ten years. This is not a ten year ban on getting new credit however. If you're already behind in your bills, your credit is most likely suffering, and bankruptcy shouldn't serve to make it any worse. Moreover, because bankruptcy discharges your current debt, your ability to pay your bills as they come do should improve, and this in turn should make it easier for you to obtain future credit.
Will bankruptcy help with the calls and letters I am getting all the time from my creditors?
Yes, the filing of a bankruptcy creates something called an 'automatic stay' and most creditors (there are some specific exceptions) must cease any collection efforts upon your filing. This includes not just contact, but other efforts taken to collect a debt, such as continuing with a lawsuit against you, or referring the matter out for collection.
An attachment or execution (both referred to as liens by the bankruptcy code) issued from a court can be removed from your house if it prevents you from using an exemption that you're otherwise entitled to. The court may also allow you to remove judicial liens occurring within ninety days of your bankruptcy filing, assuming the lien improved the creditor's right to repayment. Liens obtained by other means, such as tax liens, are generally not removable without some arrangement being made with the creditor.
What will I be allowed to keep after bankruptcy?
People filing bankruptcy must exempt their property, choosing from a slate of exemptions provided either by Massachusetts or a slate under federal law. Our state's exemptions allow you to keep $125,000 in home equity (more with a recorded homestead), $7,500 towards a car, $2,500 in cash or savings. There are also amounts allowed for furnishings, clothing and other necessary items such as retirement plans, and a 'wildcard' that can be applied to anything. The federal exemptions have different amounts for these items and which set best suits you is reviewed by you and your attorney prior to filing.
How will bankruptcy affect my credit?
The answer to this is not entirely clear. The act of filing a bankruptcy can remain on your credit history for ten years. This is not a ten year ban on getting new credit however. If you're already behind in your bills, your credit is most likely suffering, and bankruptcy shouldn't serve to make it any worse. Moreover, because bankruptcy discharges your current debt, your ability to pay your bills as they come do should improve, and this in turn should make it easier for you to obtain future credit.
Will bankruptcy help with the calls and letters I am getting all the time from my creditors?
Yes, the filing of a bankruptcy creates something called an 'automatic stay' and most creditors (there are some specific exceptions) must cease any collection efforts upon your filing. This includes not just contact, but other efforts taken to collect a debt, such as continuing with a lawsuit against you, or referring the matter out for collection.
What do I have to do before filing?
You have to go through credit counseling from an approved agency within six months of your filing. This is typically done over the telephone or the internet, and the fees for this range from $9 to $50. The bankruptcy court's website has a link to a list of approved agencies, and your attorney should be able to provide you with one as well. The credit counselors will discuss budgeting with you, and might offer a debt management plan. You may want to meet with an attorney before you attend credit counseling, as the credit counselor is not allowed to give legal advice.
What do I have to do after filing? Does it involve court?
You (and your attorney if you have one) must attend a "meeting of creditors" at which your bankruptcy trustee (the person administering your case) has questions for you about your filing. Your attorney will have prepared you for the meeting beforehand and the trustee will have been provided with certain information in advance. In most cases, Chapter 7 filers will never appear in court. Some things do require court action however, such as the removal of a lien or the approval of a reaffirmation agreement.
Will I lose my home or my car if I file bankruptcy?
Most people are able to keep their homes and cars, upon a showing that the equity in the property is exempt. Those who cannot cover all of the equity in their property might choose to pay the excess value through a Chapter 13 plan. People who have secured debt however (a mortgage, a car loan, etc), must continue to deal with the debt; either through continuing to make monthly payments, paying the lender the value of the property all at once, or returning the property.
You have to go through credit counseling from an approved agency within six months of your filing. This is typically done over the telephone or the internet, and the fees for this range from $9 to $50. The bankruptcy court's website has a link to a list of approved agencies, and your attorney should be able to provide you with one as well. The credit counselors will discuss budgeting with you, and might offer a debt management plan. You may want to meet with an attorney before you attend credit counseling, as the credit counselor is not allowed to give legal advice.
What do I have to do after filing? Does it involve court?
You (and your attorney if you have one) must attend a "meeting of creditors" at which your bankruptcy trustee (the person administering your case) has questions for you about your filing. Your attorney will have prepared you for the meeting beforehand and the trustee will have been provided with certain information in advance. In most cases, Chapter 7 filers will never appear in court. Some things do require court action however, such as the removal of a lien or the approval of a reaffirmation agreement.
Will I lose my home or my car if I file bankruptcy?
Most people are able to keep their homes and cars, upon a showing that the equity in the property is exempt. Those who cannot cover all of the equity in their property might choose to pay the excess value through a Chapter 13 plan. People who have secured debt however (a mortgage, a car loan, etc), must continue to deal with the debt; either through continuing to make monthly payments, paying the lender the value of the property all at once, or returning the property.