Why File for Chapter 7 Fitchburg MA Bankruptcy Protection?

by | Jun 29, 2012 | Lawyer

Fitchburg, a city in the U.S. state of Massachusetts, is doing better than other cities in the U.S. when it comes to the economy, but this is not to say that the over 40,318 residents (2010 census results) are not feeling the pinch. File for Chapter 7 Fitchburg MA bankruptcy protection whenever you are struggling financially. You could do this as an individual, as a partnership, as a corporation, or as a sole proprietorship.

You should file for Chapter 7 bankruptcy to protect yourself from creditors. Creditors, individually or through their lawyers, can harass you to repay their debt and this could cause a lot of emotional distress. Filing for bankruptcy ensures that you are completely debt free. The only debts that you still have to pay are student loans, most state, federal and local tax deficiencies, government penalties and fines, criminal restitution, child support and alimony payments, and debt incurred by misrepresentation or fraud.

You can file for Chapter 7 Fitchburg MA bankruptcy protection for any amount of debt. This is unlike Chapter 13 bankruptcy. You will be legally protected from creditors when you do this and you can take action whenever there is harassment. You will not only be financially free, but also emotionally free. Worrying about a debt that you cannot repay could even lead to health problems.

Filing for Chapter 7 bankruptcy protection is important because you will be eligible for a new loan in a matter of months. You should, however, note that the loan will be expensive. Being eligible for a new loan means you are able to rebuild your credit since you can use it to make the most crucial debt repayments.

You could take the filing as a new beginning. You will have learnt from your mistakes and you can take the opportunity to make a fresh start. You are required to go through financial counseling to qualify for the bankruptcy. This will help you better manage your funds.

Filing for Chapter 7 bankruptcy protection will help you avoid being thrown out. Your creditors cannot go for your house once you file for this bankruptcy. You will also protect your car and other items as detailed in the exemptions list.

You will be able to keep future income. Most of the properties you acquire following the filing do not make it into the bankruptcy estate, but note that some items acquired within 180 days will be included in the estate. These include property from divorce decrees, property from settlement agreement, inherited property, death benefits and proceeds from life insurance policies.

There will be no court-approved repayment plan as with the other major personal bankruptcy, Chapter 13. You will be under no obligation to repay the debt when you file for Chapter 7 Fitchburg MA bankruptcy protection. The discharge of your debts will occur very first, mostly between 2 and 3 months after you file for bankruptcy.

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