Boston Consumer Bankruptcy Lawyer
Consumer Bankruptcy
When an individual person or a married couple becomes mired in debt that they simply cannot pay off, one option they can consider is filing for consumer bankruptcy. If you are in this difficult situation, we at the offices of Boston bankruptcy lawyer Joshua Spirn & Associates would like to provide some basic information that may help you decide what to do.
Types of Consumer Bankruptcy
Individuals often file for bankruptcy under two chapters of the Bankruptcy Code:
The difference between them relates to how you will pay back your creditors and how your debt will be resolved. For more information, contact a Boston bankruptcy attorney from the offices of Joshua Spirn & Associates.
Straight Bankruptcy
Straight bankruptcy, the most common form of consumer bankruptcy, is filed under Chapter 7. It allows you to wipe out most, if not all, of your unsecured debts with a very few statutory exceptions, such as back taxes or child support. If you choose to go this route, the law allows debtors to keep certain types of assets that are classified as “exempt,” such as pensions and 401(k)s, and are untouchable by creditors. Any non-exempt assets would be sold off, if the debtor chooses not to keep them by paying fair market value, and the money would be given to your creditors. It is very rare that a debtor actually has to lose assets in order to free themselves of their credit card debts under Chapter 7 bankruptcy.
Consumer Reorganization
Consumer reorganization is a type of bankruptcy petition filed under Chapter 13. It is not always an option, as people need a source of income and a certain level of disposable income in order to file for it. If you are able and choose to go this route, a federal bankruptcy court will develop a fiscal plan for you to follow. You will pay back your creditors over time and will not have to liquidate any assets.
Contact Us
If you need financial advisement and legal guidance, we have the knowledge and skills necessary to help you out of your current situation.
Contact the offices of
Boston consumer bankruptcy attorney Joshua Spirn & Associates at 800-975-5346.