Phone: (617) 438-1358
Email: james@jamesomaralaw.com
339 Dorchester St, South Boston, MA 02127, United States of America
James M. O'Mara
Chapter 7 bankruptcy offers a legal pathway for individuals overwhelmed by debt to eliminate most unsecured debts, including credit cards, medical bills, and personal loans. It's designed for those who find themselves unable to manage the accumulating financial burden and seek a fresh start. To qualify for Chapter 7, a means test will assess your financial situation to ensure you have little to no disposable income after covering essential monthly expenses. For instance, if your income after essential expenses like housing and food is still sufficient to pay off debts, you might have to consider Chapter 13 bankruptcy, which arranges a repayment plan over several years.
After you file a Chapter 7, the Court will appoint a trustee to oversee your case. The trustee’s job is to review your bankruptcy petition and supporting documents and liquidate any non-exempt assets and use those funds to pay your creditors. Typically, all your assets are protected by exemptions, but some assets can be exposed in the bankruptcy. For example, if you own a car with no lien on it and the car has a Kelley Blue Book value of $10,000 and we use the Massachusetts automobile exemption of $7,500, $2,500 may be exposed in the bankruptcy. In this case, the trustee can sell your car and use up to $2,500 to pay some or all your creditors. Conversely, if you have no non-exempt assets, your creditors receive nothing. Consequently, it is very important to evaluate your assets to determine whether or not they are covered by an exemption before filing for bankruptcy.
Deciding to file for bankruptcy is a significant step that requires careful consideration and professional advice. If you're overwhelmed by financial obligations and unsure how to proceed, it might be time to explore how bankruptcy can offer a pathway to relief. For instance, if you're facing relentless calls from creditors due to unpaid credit card debts, or if medical bills from an unexpected illness have become insurmountable, Chapter 7 bankruptcy could provide a fresh start. Similarly, if you're at risk of losing your home to foreclosure or your wages are being garnished, taking action through bankruptcy can halt these proceedings and give you the space to regroup. If you find yourself in such situations and believe bankruptcy could be your path to financial recovery, contact the Law Office of James O’Mara. We are committed to helping you understand your options and guiding you towards the best solution for regaining your financial stability.
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