Chapter 7 bankruptcy Massachusetts is one that is pursued by a debtor who is not able to pay off their debts. They go to court and request that all their unsecured obligations be discharged. They must however be responsible for secured obligations such as mortgages and car payments.
The people who qualify for this procedure are low income individuals who cannot afford to clear their debts and the process takes about 6 months from start to finish. For one to qualify for this process, one must have a business or live in the country. There is a means test that is used to check whether one qualifies for it.
An individual who is not able to pay creditors usually has to state what they own after which these may be sold for cash to pay up. The ruling takes a full ten years and it is seen by lenders and creditors therefore, it is very important for the individual to look for ways to pay what they owe before resulting to filing this procedure.
In this procedure, there are obligations that are not forgivable and these include student loans, mortgages and child support payments. In this case, the creditors who are usually government entities cannot be stopped from pursuing back payments that have not been paid. This procedure should only be used by people who are undergoing extreme hardships.
One’s income is a big determinant on whether one will have the case approved or denied. People who make a lot of money may be asked to file Chapter 13 which gives more time to those who need it. A judge carefully looks at the disposable income that one has and analyzes their monthly expenses to see if they are able to make any payments. If not, they can discharge the debt and command the creditors to never make any calls to the applicant.
Chapter 7 bankruptcy Massachusetts can help one rebuild their credit and start afresh so that lenders can issue them new loans that will help them to buy homes, cars and even get higher education loans. An individual should however try as much as possible and pay off their debts before finally opting for this solution.
Read more: http://articlestwinkle.com/reference-education/legal-reference-education/understanding-how-chapter-7-bankruptcy-massachusetts-works
The people who qualify for this procedure are low income individuals who cannot afford to clear their debts and the process takes about 6 months from start to finish. For one to qualify for this process, one must have a business or live in the country. There is a means test that is used to check whether one qualifies for it.
An individual who is not able to pay creditors usually has to state what they own after which these may be sold for cash to pay up. The ruling takes a full ten years and it is seen by lenders and creditors therefore, it is very important for the individual to look for ways to pay what they owe before resulting to filing this procedure.
In this procedure, there are obligations that are not forgivable and these include student loans, mortgages and child support payments. In this case, the creditors who are usually government entities cannot be stopped from pursuing back payments that have not been paid. This procedure should only be used by people who are undergoing extreme hardships.
One’s income is a big determinant on whether one will have the case approved or denied. People who make a lot of money may be asked to file Chapter 13 which gives more time to those who need it. A judge carefully looks at the disposable income that one has and analyzes their monthly expenses to see if they are able to make any payments. If not, they can discharge the debt and command the creditors to never make any calls to the applicant.
Chapter 7 bankruptcy Massachusetts can help one rebuild their credit and start afresh so that lenders can issue them new loans that will help them to buy homes, cars and even get higher education loans. An individual should however try as much as possible and pay off their debts before finally opting for this solution.
Read more: http://articlestwinkle.com/reference-education/legal-reference-education/understanding-how-chapter-7-bankruptcy-massachusetts-works
1 comments:
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