Weighing the Pros and Cons of Bankruptcy

Bankruptcy can provide many benefits for those unable to pay their debts, but there also potential drawbacks that must be considered before proceeding. It’s important for people to understand the difference between chapter 7 or chapter 13 and the relative merits of each. Stopping Collection Activity An important advantage is regardless of which chapter you file under, your creditors must immediately cease all collection activities once you file your petition with the court. This “automatic stay” stops any foreclosure proceedings, … Continued

How Can Bankruptcy Affect Your Retirement Benefits?

If you must file for Chapter 7 or 13 then you can breathe easy because you will be allowed to keep your retirement plan funds and your pension. However, there are limitations. Exempt Retirement Accounts Please remember if you must file bankruptcy, you will not lose everything. There are bankruptcy exemptions that help protect you and some assets. In 2005, Congress redid the bankruptcy laws. Almost all ERISA-qualified retirement accounts along with pension funds are now exempt so creditors cannot … Continued

A Letter of Foreclosure: What Does it Mean?

Are you facing foreclosure?  Have you received a certified foreclosure letter sent from a lender or attorney?  The letter typically means that you have fallen behind on your payments and the lender plans on pursuing foreclosure proceedings to sell off the property to gain back the late payments and the balance owed on the mortgage. However, there are a series of legal milestones that must take place. Within the Notice of Default, you will find solutions that cover your past-due … Continued

Dangers and Risks of Taking Personal Online Loans

Personal online loans are viewed by lenders as higher risk because a personal loan is another way of describing unsecured debt; as in a loan that isn’t backed by collateral such as a home or car. From the borrower’s perspective, a personal online loan carries potential dangers that aren’t typical of traditional bank loans. These heightened risks to borrowers fall into 3 categories: safety, ease-of-access and predatory lending practices. Are Online Loans Safe? Many online lending sites are backed by … Continued

6 Foreclosure Defenses for MA Homeowners

Homeowners and foreclosure defense lawyers have been increasingly successful in stopping foreclosures and establishing equitable solutions for keeping people in their homes under reasonable terms. From Truth In Lending enforcements to mortgage transparency rulings, the trend is clear: homeowners who fight a wrongful foreclosure can win. We stay on top of all foreclosure defense strategies at our Massachusetts bankruptcy and foreclosure defense firm. We’re happy to provide the following information in hopes it may be useful to you. Just One … Continued

How a Reaffirmation Agreement Works in a Chapter 7

A reaffirmation agreement between the debtor and a creditor works by waiving the discharge of a particular debt that would otherwise be discharged in the pending Chapter 7 bankruptcy. This means the debtor will be contractually obligated to the creditor and personally liable for the debt even after the bankruptcy case is closed. Reaffirmation agreements can have serious drawbacks that a debtor should be made aware of. To that end, here are answers to common questions about how a reaffirmation … Continued

How Bankruptcy Law Affects Your Inheritance When Filing Chapter 7

When you file for bankruptcy a bankruptcy estate is created. In a Chapter 7 bankruptcy, any assets you had as of the date of your filing that are not exempt will be brought into the estate and sold (liquidated) in order to pay your creditors. Estate assets that can be liquidated in Chapter 7 include inheritances. But there is a special rule under bankruptcy law for inheritances that you should be aware of. The rule allows the trustee to take … Continued