File for bankruptcy in Massachusetts: more on myths

For most of the Americans the decision to File for bankruptcy in Massachusetts is certainly the last resort. Between unemployment, pink slips, underemployment, death, divorce and uninsured medical costs, people are actually turning towards bankruptcy for getting the much needed relief.

As a matter of fact, with the Massachusetts bankruptcy filing the wide range of defaulted borrowers can now regain control over their fate and can save their property even in the face of a foreclosure. Well, once you are sure that “bankruptcy” can support you then you have to decide which bankruptcy chapter can suffice your need. You have to decide if Chapter 13 bankruptcy or filing Massachusetts Chapter 7 Bankruptcy is right for you. In fact, Massachusetts Bankruptcy attorney can offer more info on this however; in brief Chapter 13 bankruptcy is better suited to individuals who are able to make plans to repay all of their outstanding debts. Chapter 7 bankruptcy on the other hand is better for people who do not have the means to set up repayment plans. It stands as typically a form of bankruptcy help, which allows debtors to have debts discharged through liquidation of non-exempt assets.

However before anyone ventures down to File for bankruptcy in Massachusetts they will need to have common bankruptcy myths exposed.

Myth 1: I cannot file bankruptcy because I have a good job: This is a common myth and all filers are required to take the "means test." The means test will compare your income for the household of your size to the median income of your state. In fact, if your income is too high - you would be diverted to filing a Massachusetts Chapter 13 Bankruptcy as opposed to the Chapter 7.

Myth 2: I need to pay off the debt if I file a Chapter 13 bankruptcy: This is not always true. In fact, every Chapter 13 repayment plan is different and these can range from paying unsecured creditors virtually nothing to paying up to 100%. It all depends on a variety of factors.

Myth 3: I will practically lose all if I file bankruptcy: In fact many of the bankruptcies cases are ‘no asset’ where the debtor gets to keep everything they own. IN FACT, THE After bankruptcy in Massachusetts allows exemptions to the debtors to keep a significant amount of personal property including IRA's and pensions.

Myth 4: Alimony and child support can be included in bankruptcy: This is purely a myth and you simply cannot include spousal support/alimony, child support, student loans, court-ordered fines or victim restitution in bankruptcy.

The Massachusetts bankruptcy center with its various locations, dotted all across Massachusetts and with the team of expert bankruptcy attorneys and support staff, offers you customized solution to regain your financial stability.

This content has been taken from: http://www.zimbio.com/Bankruptcy+Service/articles/r1gFtclvhSR/File+bankruptcy+Massachusetts+Bankruptcy+myths?add=True