If you’re considering filing bankruptcy in Boston, MA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Boston, Massachusetts, or anywhere in the United States involves meeting certain eligibility criteria defined under federal bankruptcy laws. Bankruptcy is a legal process designed to help individuals and businesses who are overwhelmed by debt to obtain a fresh financial start.

1. Residency and Location: To file for bankruptcy in Boston, you generally must reside or have a domicile, place of business, or property in the area. This means you need to be a resident of Massachusetts or have a significant connection to the state.
2. Means Test: One of the primary eligibility requirements for individuals or households filing for bankruptcy is passing the “means test.” The means test assesses your income and expenses to determine if you qualify for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is a liquidation bankruptcy, while Chapter 13 is a reorganization bankruptcy.
   • Chapter 7 Eligibility: To qualify for Chapter 7, your income must be below the median income for your household size in Massachusetts. If your income is above the median, you may still qualify if your disposable income, after certain allowable expenses, does not leave you with sufficient funds to repay your debts. An experienced bankruptcy attorney can help you navigate this complex calculation.
   • Chapter 13 Eligibility: If your income exceeds the Chapter 7 threshold, you may consider filing for Chapter 13 bankruptcy. This chapter allows you to create a repayment plan to catch up on arrears while retaining your assets.
3. Credit Counseling and Financial Management Courses: Before filing for bankruptcy, you must complete credit counseling from an approved agency. Additionally, you must attend and complete a financial management course after filing. These requirements are designed to provide you with tools and information to manage your finances more effectively in the future.
4. Previous Bankruptcy Discharge: If you’ve filed for bankruptcy previously and received a discharge, there are limitations on when you can file again. These limitations vary depending on the type of bankruptcy previously filed and the chapter you intend to file under now. Generally, the waiting periods range from 2 to 8 years.
5. Bankruptcy Fraud and Abuse: Committing bankruptcy fraud or abuse can disqualify you from filing bankruptcy or result in your case being dismissed. It is crucial to provide accurate and complete information about your financial situation and assets in your bankruptcy petition.
6. Business Bankruptcy Eligibility: Businesses, including sole proprietorships, partnerships, corporations, and LLCs, can also file for bankruptcy in Boston. However, the eligibility criteria and available chapters differ from those for individuals. Common options for business bankruptcy include Chapter 7, Chapter 11, and Chapter 13, depending on the business’s structure and objectives.
7. Consulting with an Attorney: It’s strongly recommended to consult with an experienced bankruptcy attorney when considering bankruptcy. They can assess your specific financial situation, guide you through the eligibility requirements, and help you choose the appropriate bankruptcy chapter.
8. Exemptions and Asset Protection: Massachusetts has specific bankruptcy exemptions that determine what property you can keep when filing for bankruptcy. Understanding these exemptions is crucial, as they can significantly impact your case. Common exemptions include those for your primary residence, personal property, and retirement accounts.

Qualifying for bankruptcy in Boston, Massachusetts, requires meeting specific eligibility criteria, including residency, passing the means test, completing credit counseling and financial management courses, and adhering to bankruptcy laws and regulations. Eligibility can vary based on individual circumstances, such as income, household size, and previous bankruptcy history. Consulting with a qualified bankruptcy attorney is essential to navigate the complex bankruptcy process effectively and determine the best course of action for your financial situation. Bankruptcy can provide a fresh start for those facing overwhelming debt, but it should be approached with careful consideration and professional guidance.

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Do You Need a Lawyer to File For Bankruptcy in Boston, MA?

Filing for bankruptcy in Boston, Massachusetts, is a legal process with complex rules and procedures. While it is not an absolute requirement to hire a lawyer to file for bankruptcy, there are several compelling reasons why it is highly advisable to seek legal representation when considering bankruptcy:

1. Legal Expertise: Bankruptcy law is intricate and constantly evolving. An experienced bankruptcy attorney is well-versed in the intricacies of both federal bankruptcy laws and the specific rules and procedures governing bankruptcy in Massachusetts. They can help you navigate the legal system, interpret complex regulations, and ensure that you meet all the necessary requirements.
2. Individualized Guidance: Your financial situation is unique, and the appropriate bankruptcy chapter for your case may differ from others. A skilled attorney can assess your specific circumstances and recommend the most suitable bankruptcy chapter, whether it’s Chapter 7 (liquidation) or Chapter 13 (reorganization). This personalized guidance is invaluable in maximizing the benefits of bankruptcy while minimizing potential drawbacks.
3. Means Test Analysis: Determining your eligibility for Chapter 7 bankruptcy hinges on passing the means test, which evaluates your income, expenses, and ability to repay debts. An attorney can help you navigate this test, identify allowable deductions, and strategically time your bankruptcy filing to increase your chances of passing.
4. Asset Protection: An attorney can help you understand and utilize Massachusetts’ bankruptcy exemptions effectively. These exemptions protect certain assets from being sold to satisfy your debts. A skilled lawyer can help you safeguard valuable assets such as your primary residence, personal property, and retirement accounts while still pursuing debt relief.
5. Complex Paperwork: The bankruptcy process involves extensive paperwork, including the bankruptcy petition, schedules, and financial disclosures. A bankruptcy attorney can assist you in accurately completing these documents, reducing the risk of errors that could delay your case or lead to legal complications.
6. Creditor Negotiations: If necessary, your attorney can negotiate with creditors on your behalf. This can include working out debt repayment plans, addressing objections, or resolving disputes. Their experience in dealing with creditors can lead to more favorable outcomes for you.
7. Court Representation: If your bankruptcy case requires court appearances or hearings, having an attorney by your side is invaluable. They can represent your interests, present your case persuasively, and handle any unexpected challenges that may arise during the process.
8. Post-Bankruptcy Guidance: Bankruptcy doesn’t end with the discharge of your debts. An attorney can provide post-bankruptcy guidance on rebuilding your credit, managing finances, and ensuring compliance with any ongoing obligations.
9. Minimizing Mistakes: Mistakes in your bankruptcy filing can have serious consequences, including case dismissal or accusations of bankruptcy fraud. An attorney’s expertise helps minimize the risk of errors and ensures that your bankruptcy case proceeds smoothly.
10. Peace of Mind: Bankruptcy is a stressful and emotionally challenging process. Having a knowledgeable attorney on your side can provide peace of mind, knowing that you have a professional advocate working to protect your interests and secure the best possible outcome for your financial future.

While it is technically possible to file for bankruptcy without an attorney, it is generally not recommended, especially given the complexities involved. The potential savings in legal fees may be outweighed by the risks of costly errors, denied discharges, or lost assets. Ultimately, consulting with and hiring a qualified bankruptcy attorney in Boston, MA, can be a wise investment in your financial stability and future well-being. They can guide you through the process, advocate for your interests, and help you achieve a successful bankruptcy outcome.

Cost to File Chapter 7 Bankruptcy in Boston, MA

The cost to file for Chapter 7 bankruptcy in Boston, Massachusetts, includes various fees and expenses. These costs can add up, and it’s essential to be aware of them before initiating the bankruptcy process. Here’s a breakdown of the primary costs associated with filing Chapter 7 bankruptcy in Boston:

1. Attorney Fees: While it is possible to file for bankruptcy without an attorney (pro se), most individuals hire a bankruptcy lawyer due to the complexity of bankruptcy laws and procedures. Attorney fees can vary widely based on factors like the attorney’s experience and the complexity of your case. In Boston, you can expect to pay anywhere from $1,320 to $2,820 or more for legal representation in a Chapter 7 case.
2. Filing Fee: The filing fee for Chapter 7 bankruptcy is set by the federal courts. It’s essential to verify the current filing fee, as it may change over time. This fee is typically paid when you submit your bankruptcy petition to the court.
3. Credit Counseling and Financial Management Courses: Before filing for bankruptcy, you must complete credit counseling from an approved agency. The cost for this counseling can range from $29 to $64. Additionally, you’ll need to complete a financial management course after filing.
4. Miscellaneous Costs: There may be additional expenses related to your bankruptcy case, such as postage, copying fees, and notary fees. While these costs are relatively small, they can add up over the course of the bankruptcy process.
5. Exemption Costs: If you need to claim certain property as exempt to protect it from being sold to pay creditors, you may need to pay for property appraisals or valuations to establish its value.
6. Credit Report Fees: Obtaining your credit reports to ensure all creditors are included in your bankruptcy filing may require additional fees. You are entitled to one free credit report from each of the three major credit reporting agencies annually through AnnualCreditReport.com.

It’s important to note that if you are unable to afford the fees associated with filing for Chapter 7 bankruptcy in Boston, you may be eligible for a fee waiver. You would need to demonstrate to the court that your income is below a certain threshold and that you cannot afford to pay the fees. Additionally, some bankruptcy attorneys offer payment plans to help individuals manage their legal fees. Be sure to discuss your financial situation and fee options with your chosen attorney.

The cost of filing Chapter 7 bankruptcy in Boston, MA, can vary depending on individual circumstances and the complexity of the case. While the fees and expenses can be a significant consideration, the potential benefits of obtaining relief from overwhelming debt and achieving a fresh financial start can outweigh the costs for many individuals facing financial hardship. Consulting with a bankruptcy attorney can help you understand the specific costs associated with your case and explore your options for managing them.

Cost to File Chapter 11 Bankruptcy in Boston, MA

Filing for Chapter 11 bankruptcy in Boston, Massachusetts, can be a complex and costly process, primarily because Chapter 11 is typically used by businesses seeking debt reorganization and financial restructuring. The costs associated with Chapter 11 bankruptcy can vary significantly depending on the size and complexity of the case. Here’s an overview of the primary expenses involved:

1. Attorney Fees: Engaging a skilled bankruptcy attorney is essential when filing for Chapter 11. Attorney fees in Chapter 11 cases tend to be substantial due to the complexity of these proceedings. The fees can range from tens of thousands of dollars to hundreds of thousands, depending on the size of the business and the intricacies of the case. Attorneys may charge hourly rates or flat fees, and it’s crucial to discuss the fee structure upfront.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is $1,927. This fee is set by the federal courts and may be subject to change. It is typically paid when the bankruptcy petition is submitted to the court.
3. U.S. Trustee Fees: In Chapter 11 cases, businesses are required to pay quarterly fees to the U.S. Trustee Program based on their disbursements. The fee scale can be complex, and it is calculated as a percentage of disbursements made during the quarter. The U.S. Trustee monitors the case and ensures compliance with bankruptcy laws.
4. Professional Fees: In many Chapter 11 cases, professionals such as financial advisors, accountants, and appraisers are retained to assist with the restructuring process. These professionals charge fees for their services, which can vary widely depending on the scope of their work.
5. Creditors’ Committee Expenses: In some Chapter 11 cases, a creditors’ committee may be appointed to represent the interests of unsecured creditors. The expenses associated with the committee, including legal and accounting fees, are typically paid by the debtor’s estate.
6. Operating Expenses: Businesses in Chapter 11 often continue to operate during the bankruptcy process. These ongoing operating expenses, such as payroll, rent, utilities, and supplier payments, are the responsibility of the debtor and are part of the overall cost of the bankruptcy process.
7. Plan Confirmation Costs: Developing and obtaining court approval for a Chapter 11 reorganization plan can involve additional legal and administrative expenses. This includes drafting the plan, soliciting creditor votes, and addressing objections.
8. Chapter 11 Trustee Fees: In some cases, the court may appoint a Chapter 11 trustee to oversee the debtor’s operations and financial affairs. The trustee’s fees are typically paid from the debtor’s assets.
9. Court-Approved Expenses: Throughout the Chapter 11 process, there may be various other court-approved expenses, including administrative costs, necessary to facilitate the case’s progress.

Businesses and individuals considering Chapter 11 should consult with experienced bankruptcy attorneys to assess the potential costs, develop a strategy, and explore options for managing expenses. Chapter 11 can be a powerful tool for debt restructuring and recovery, but it requires careful planning and financial resources to navigate successfully.

Cost to File Chapter 13 Bankruptcy in Boston, MA

Filing for Chapter 13 bankruptcy in Boston, Massachusetts, involves specific costs and fees that individuals should be aware of when considering this debt reorganization option. Chapter 13 is designed for individuals with a regular income who want to create a structured repayment plan to address their debts over a period of time. Here’s a breakdown of the primary costs associated with filing Chapter 13 bankruptcy in Boston:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is $368. This fee is set by the federal courts and may be subject to change. It is typically paid when you submit your bankruptcy petition to the court.
2. Attorney Fees: Hiring an experienced bankruptcy attorney is highly recommended when filing for Chapter 13 bankruptcy. Attorney fees can vary depending on factors such as your location, the complexity of your case, and the attorney’s experience. In Boston, you can expect to pay anywhere from $2,820 to $5,630 or more for legal representation in a Chapter 13 case. Some attorneys may offer payment plans to help individuals manage these costs.
3. Credit Counseling and Financial Management Courses: Before filing for bankruptcy, you are required to complete credit counseling from an approved agency. The cost for this counseling typically ranges from $32 to $72. Additionally, you must complete a financial management course after filing.
4. Trustee Fees: In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to oversee your case and administer your repayment plan. The trustee is entitled to a fee, which is typically a percentage of the payments made through your plan. This fee is included in your monthly plan payments, so you don’t pay it directly out of pocket.
5. Credit Report Fees: Obtaining your credit reports to ensure all creditors are included in your bankruptcy filing may require additional fees. You are entitled to one free credit report from each of the three major credit reporting agencies annually through AnnualCreditReport.com.
6. Court-Approved Expenses: There may be various other court-approved expenses throughout the Chapter 13 process, including administrative costs necessary to facilitate the case’s progress.
7. Plan Payments: In a Chapter 13 bankruptcy, you’ll be required to make monthly plan payments to the bankruptcy trustee. The amount of these payments is determined by your disposable income, debts, and the length of your repayment plan. The plan typically lasts three to five years, and you’ll need to budget for these payments as part of your overall financial plan.

It’s important to note that individuals filing for Chapter 13 bankruptcy do so with the goal of repaying a portion of their debts over time while protecting their assets. The costs associated with Chapter 13 bankruptcy are structured to allow for this gradual repayment and debt relief.

Reliable Bankruptcy Attorneys in Boston, MA

Below is a list of reputable bankruptcy attorneys in Boston, MA. They can help you with both personal and business bankruptcy information.

Law Offices of James O’Mara
339 Dorchester St, Boston, MA 02127, United States

The Law Offices of Joseph P Foley
92 State St Floor 7, Boston, MA 02109, United States

Boston Bankruptcy Attorney
185 Devonshire St STE 302, Boston, MA 02110, United States

Grolman LLP
29 Stanhope St, Boston, MA 02116, United States

Ravosa Law Offices, P.C.
300 Commercial Street, Boston, MA 02109, United States

Boston, MA Zip Codes We Proudly Serve:

02108, 02109, 02110, 02111, 02113, 02114, 02115, 02116, 02118, 02119, 02120, 02121, 02122, 02124, 02125, 02126, 02127, 02128, 02129, 02130

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