Chapter 7 bankruptcy : more on this

This is where a detail and thorough pre bankruptcy counseling session with counseling organizations help s in having a systematic evaluation of the personal financial situation. This is certainly the vital step prior filing for bankruptcy in Massachusetts. The session usually lasts for around 60 – 90 minutes and the counseling bankruptcy cost is around $50. However, if you are not in a position to bear the fee ask for a fee waiver. To be on the safer side, before filing for bankruptcy in Massachusetts review your options well. In Massachusetts, individuals can file for a chapter 7 or a chapter 13 petition. While the chapter 7 helps in liquidating all your debts, the chapter 13 ideally focuses on restructuring your debt.

In fact, the changes to ‘bankruptcy’ law have now made it pretty much harder for filing bankruptcy. As a matter of fact, a few filers with higher incomes will no longer allowed to use Chapter 7 Bankruptcy, rather will have to repay at least some of their debt under Chapter 13 bankruptcy.

Here are some of the most important changes Massachusetts bankruptcy laws: Restricted Eligibility for Chapter 7 Bankruptcy: As alluded above the Massachusetts bankruptcy law passed in 2005 prohibits some filers with higher incomes from using Chapter 7 bankruptcy.

Evaluate your income: Under the new bankruptcy law the first step in figuring out whether you can file for Chapter 7 bankruptcy is to measure your "current monthly income" against the median income. In fact, you must also pass "the means test" of the new law prior filing Chapter 7.

The Means Test: this test is done to figure out whether you have enough disposable income, to make payments on a Chapter 13 plan

As a matter of fact, both the Chapter 7 and Chapter 13 bankruptcy allows you to keep some assets safe from creditor demands. Remember bankruptcy can help you in restructuring your finance so is now the time to be proactive.

This content has been taken from: http://www.zimbio.com/Bankruptcy+Service/articles/UkEgrpCOk-c/Chapter+7+bankruptcy+Changes+know?add=True