Chapter 7 is typically used to close a business and liquidate assets to pay creditors — it's best for businesses that don't plan to continue operating. Chapter 11 is a reorganization option that allows a business to restructure debt and stay open, but it can be lengthy, complex and costly. Subchapter V is a newer, more streamlined version of Chapter 11 designed specifically for small businesses. It makes reorganization faster, less expensive, and more accessible, often without the need for creditor approval. I will help you figure out which option fits your business goals and financial reality.

Chapter 7 is often called a 'fresh start' bankruptcy — it helps wipe out most unsecured debts like credit cards and medical bills, and it's usually completed in a few months. Chapter 13 is a good option if you have steady income and want to catch up on missed mortgage, car, or tax payments over time while keeping your property. Chapter 11 is more commonly used by businesses, but some individuals with higher debt amounts may use it to reorganize their finances in a flexible way. Each option has different benefits, and I will help you choose what's best for your situation — with no pressure and no judgment.

Most clients facing the prospect of bankruptcy have credit scores that are low because of large unpaid balances and/or past due payments. Bankruptcy may stay on your credit report for 7-10 years. However, filing for bankruptcy is often the first step to rehabilitating your credit score. Filing for bankruptcy does not mean you will never have credit again but you may need a co-signed and credit may be more expensive. Many people start receiving credit card offers within months of filing bankruptcy. These may require a deposit (ie. a secured credit card), or start with higher interest rates or lower limits, but give you a chance to start showing responsible use. Over time, with on-time payments and smart financial habits, your credit can improve — sometimes even faster than if you continued to struggle with unpaid debt. Many people qualify for auto loans within a year, and even mortgage eligibility may return within 2–3 years with good financial behavior and a steady paying job.

Most debtors are able to keep all of their property because it is protected from creditors by exemptions. For most debtors, the most generous exemptions are those provided by Massachusetts law which protect clothing, furniture, household goods, retirement accounts and pensions, tools of your trade or business, your home and a personal car. My job as your lawyer is to help you select the exemptions that will best protect the property that you own. We'll go over exactly what you own and help you understand what's protected under state and federal exemptions.

Generally, credit card debts, personal loans, medical debts, business debts, unpaid rent, and other unsecured debts are forgiven in bankruptcy. Secured debts, such as mortgages and car loans, can also be wiped out but must continue to be paid if you want to keep the property to which the secured debt relates — if you want to keep your house, you must continue to be able to pay your mortgage. Also, some types of debts are not forgiven in bankruptcy. Common examples include student loan debts, most types of tax debts (although income taxes that are more than 3 years old may be dischargeable), debts for alimony, maintenance and support, and debts incurred in a fraudulent manner.

Many companies advertise plans to get out of debt. While there are legitimate credit counseling companies, many companies are simply unable to provide debt relief because much of the money paid in the programs is used first to pay the fees and expenses of the debt settlement company. In most cases, bankruptcy is the only source of complete relief from creditors.

The answer is yes. Bankruptcy stops lawsuits, collection, wage garnishments, repossessions and foreclosures and if the creditors do not stop, you can sue them!

The timeline depends on the type of bankruptcy you file. For individuals, Chapter 7 cases are usually completed in about 3 to 4 months after filing, while Chapter 13 cases involve a repayment plan and typically last 3 to 5 years. For small businesses, the length of a case can vary. Chapter 7 business cases may move quickly if there are few assets, but if liquidation is involved, it may take many months or years to complete. Chapter 11 and Subchapter V cases — which allow businesses to restructure and keep operating — generally take longer and can range from a few months to a couple of years, depending on the complexity of the business and the reorganization plan. Whatever your situation, I will guide you through each step and keep the process as clear and manageable as possible.

The cost of filing for bankruptcy depends on the type of case and how complex your situation is. For most individuals, Chapter 7 bankruptcy is the most affordable option, with court fees around $338 and attorney fees typically ranging from $2,500 - $5,000.00, depending on the case. Chapter 13 bankruptcy involves a longer repayment plan and tends to cost more overall, in the range of $5,000 - $7,500.00. The good news is that the attorney fee in Chapter 13 may be paid monthly as part of the Chapter 13 plan, making it easier to manage. Chapter 11 bankruptcy, usually used by businesses or individuals with higher debts, is more complex and can cost significantly more — often starting at $10,000 or more. We'll always explain your costs clearly up front, and we offer flexible payment options to help you get started without added stress.