What does filing for bankruptcy protect me from?

The moment you file for bankruptcy a “stay” on all collection activity goes into effect. The stay goes into effect automatically, accordingly, it is called the “automatic stay.”  The automatic stay acts as a temporary restraining order on collection activity such as creditor phone calls, collection letters, lawsuits, foreclosures, repossessions, wage garnishments, and enforcement of most judgments.  The stay is in place until the case is closed – either through operation of law after your discharge, or upon dismissal for cause. 

At the end of your case (typically in a matter of months in a Chapter 7 case) you receive a discharge.  A discharge is essentially a permanent injunction on collection of certain debts, in certain ways.  A discharge actually eliminates your legal responsibility for most unsecured debts, such as credit cards, medical bills, etc.  It actually eliminates your personal responsibility for secured debts as well (such as a home loan or a car loan), however, the discharge alone does not extinguish the secured lender’s rights to the collateral you pledged when you took out the loan (i.e., the house in the case of a mortgage or the vehicle in the case of a car loan).  The lender can still foreclose on your mortgage or repossess the vehicle if you do not make your required payments.  If there is a deficiency after the foreclosure or repossession, then the lender cannot recover the remaining balance due under the loan from you personally.

Certain other debts are non-dischargeable.  Typically priority debts (such most taxes), domestic support obligations and certain deposits are non-dischargeable.  In addition, education loan obligations (such as student loans and so-called parent loans) survive the bankruptcy.

If you are struggling with debt you should talk to an experienced bankruptcy attorney as soon as possible.  To schedule a free consultation call the Law Offices of James Wingfield today or visit the contact page on our website.

Can I file bankruptcy for shared debts during a divorce? – Answered by Lawyer James Wingfield in Worcester, MA on September 22, 2011 - LawQA.com

Can I file bankruptcy for shared debts during a divorce? – Answered by Lawyer James Wingfield in Worcester, MA on September 22, 2011 - LawQA.com

My husband and I are getting ready to file for divorce. We have 40,000 in credit card debt. Some in his name with me as an authorized user. Some in my name. He lost his job a year ago and is on unemployment. We now have $11,000 in hospital bills from him but the insurance is in my name. If we divorce can I file bankruptcy on all to get all debt wiped out, or does he have to file also?

You can file for Bankruptcy either before or after your divorce is finalized. I would not, however, recommend filing alone if you are in the process of a divorce. If you must file now, it is best for you and your husband to file together (it will leave you both with one less thing -- debt-- to fight over in the divorce). If you must file alone, you should wait to file until after the divorce is finalized just be certain your separation agreement / divorce judgment, specifies that you each are responsible for your own debts, and not for any of each others debts. Your bankruptcy will wipe out YOUR liability under the joint debts, but not your husbands debts. If you file separately, he will still be liable for the debts.

Even if you decide to wait, it is useful for you to have a bankruptcy attorney involved at an early date. I often like to review divorce agreements (particularly for the language surrounding division of assets, debts and payment from one party to the other) so that I can best protect my clients when we eventually file a bankruptcy case. To schedule a free consultation with an experienced bankruptcy attorney, call the Law Offices of James Wingfield today at 508-797-0200 or visit the contact page on our website.

How do I file for bankruptcy? – Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011 - LawQA.com

How do I file for bankruptcy?

Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011

How do I file for bankruptcy? – Answered by Lawyer James Wingfield in Worcester, MA on September 28, 2011 - LawQA.com

I'm losing my credit score because of late pays. My husband has been laid off for 2 years. There is no more savings left only a $50,000 a year income. Should I file for bankruptcy and if so, what are the first steps?

Based on your description it sounds like you should at least be considering bankruptcy. In Massachusetts, any household with an annual income of only $50,000.00 will qualify for a Chapter 7 case (based on the median income in Massachusetts as determined under the Means Test). Even so a Chapter 13 may be in your best interest if you have certain specific real estate situations. You should begin by finding a qualified bankruptcy attorney that you can trust. It is important to give your attorney all the necessary documents so that he or she may properly evaluate your situation. These documents include, but are not necessarily limited to, your credit reports, your federal tax returns (with all schedules, worksheets and supporting documents) for the past two tax years, your past six months of pay stubs, your past six months of bank statements, all collection letters, any statements regarding investment or retirement accounts, an appraisal or brokers price opinion for any real estate you have and a Kelly Blue Book report for any vehicles you own. Your attorney may want more information and other specific documents depending upon your situation. The sooner you pull these documents together the quicker you can get your case filed, so there is no time like the present to start pulling together the documents. To schedule a free consultation with a experienced bankruptcy attorney, call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website today.

What happens to my savings in Bankruptcy?

The question of what happens to your savings or other assets in a bankruptcy is dependent upon your individual circumstances.  If you are considering a Chapter 7 bankruptcy (liquidation), then there is a chance that some of your assets, including the money in your savings account will become property of the bankruptcy estate (“taken by the Chapter 7 trustee”) and distributed to creditors.  However, individuals filing for protection under the bankruptcy code are able to take advantage of certain legal “exemptions” which prevent certain property, up to a certain value, from becoming part of the bankruptcy estate. In Massachusetts, we are lucky enough to be allowed to choose from two different “menus” of exemptions: those provided under the Bankruptcy Code (the “Federal Exemptions”) and those provided under non-bankruptcy law (primarily state law, the “Massachusetts Exemptions”).  Your attorney can help  you to understand which set of exemptions will best protect your assets, but without knowing what the full picture of assets (all your money and your “stuff”) it is impossible to determine whether you are in danger of losing your savings in a bankruptcy. 

The best way to determine whether you run the risk of losing your savings or other possessions in a bankruptcy is to consult with a qualified bankruptcy attorney.  To schedule a no-cost, no-obligation consultation, call the Law Offices of James Wingfield at 508-797-0200, or visit the contact page of our website today.

Breaking News: DOMA and Bankruptcy Law

Last summer I examined some of the problems with Federal DOMA (the so-called "defense" of marriage act) on our firm's other blog.  At the time, I expressed my concern that couples that were legally married were unable to obtain equal treatment in the bankruptcy courts because, pursuant to the Federal DOMA law, legally married same-sex couples are denied the protections of marriage under Federal law.  Recently, a California bankruptcy court allowed a same-sex couple to proceed with a joint bankruptcy petition.  In the case (In re Ziviello-Howell, No 11-22706 (N.D. Cal)), Judge Michael S. McManus denied a motion by the United States Trustee to dismiss the case alleging that the joint petition was improper and unauthorized because DOMA limits the definition of the term "spouse" as defined to a person of the opposite sex.  The Court reasoned in part that “[w]hether or not the debtors are spouses under DOMA, because they are legally married, because their assets and liabilities belong to their community, and because it will not make any practical difference to anyone if this case proceeds as one or two cases, the court concludes that there is no cause for dismissal of this joint case.”  Whether this case is appealed is left to the Justice Department, but this one case does not change the law, or the lay of the land. 

If you are experiencing financial difficultly you should meet with a qualified bankruptcy attorney sooner rather than later to properly plan the best course of action to protect your assets from creditors. To schedule a free consultation with an experienced bankruptcy attorney, call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website.

The Truth About Loan Modifications

If you are facing foreclosure, load modification may be one avenue to explore. This article explains some of the pitfalls associated with loan modifications and recommends speaking with a qualified bankruptcy lawyer before beginning the process. To schedule a no-cost, no-obligation consultation call the Law Offices of James Wingfield at 508-797-0200, or visit the contact section of our website.

Tips for Avoiding Bankruptcy

The advice in this article can help you to avoid a bankruptcy or rebuild your credit and wealth after a bankruptcy filing.  If paying 20% of your income to reduce debt is not enough to help you climb out of a bad debt situation, however, you should consider consulting with a qualified bankruptcy attorney.  To schedule a no-cost, no-obligation consultation call the Law Offices of James Wingfield at 508-797-0200, or visit the contact section of our website.

Perspective from a Ch. 7 Trustee

Ch. 7 Trustees are often bankruptcy attorneys themselves who represent debtors, creditors or both in their non-trustee practice.  Here's an interview with a new Ch. 7 trustee on learning the ropes after only representing debtors:  http://tinyurl.com/47hsx2z.  It's important to find a qualified bankruptcy lawyer who understands the Trustee's perspective.  To schedule a no-cost, no-obligation consultation call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website.

Opposition on the Hill to Consumer Protection

NY Times Op-Ed regarding the GOP attack on Elizabeth Warren: http://nyti.ms/i0GA9k

It's important to recognize that creditors have lawyers and lobbyists.  Its important that for you to have a  qualified bankruptcy attorney  in your corner if you are experiencing trouble with debt.  To schedule a no-cost, no-obligation consultation call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website.

A Friendly Reminder That Banrkruptcy Relief is Intended for Honest Debtors

A Friendly Reminder That Banrkruptcy Relief is Intended for Honest Debtors.  The former Mayor of Corona California learned this lesson the hard way.  Before you attempt a bankruptcy talk to a qualified bankruptcy attorney and do not withhold facts.  To schedule a no-cost, no-obligation consultation call the Law Offices of James Wingfield at 508-797-0200 or visit the contact page on our website.