Bankruptcy Services

Chapter 7 bankruptcy is often referred to as a , but that term can sound scarier than it really is. It’s a powerful legal option that allows individuals and small business owners to eliminate overwhelming debt and start over with a clean financial slate.I understand that the idea of filing for bankruptcy can feel intimidating or even shameful. But here’s the truth: bankruptcy is a way to move forward and get a fresh start.

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How Chapter 7 Works (for Individuals)

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If you’re dealing with credit card debt, medical bills, or personal loans, Chapter 7 can help. Most people who file Chapter 7 can keep all their property like their home, car, clothing, household goods, and retirement accounts, thanks to legal exemptions.

Here’s what to expect:

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• I will review your debts, assets, and income to see if Chapter 7 is right for you.
   

• I will file your case with the bankruptcy court in Massachusetts.
   

• An automatic stay goes into effect when your case is filed. This which means creditors must immediately stop calling, suing, or garnishing wages.
   

• A court-appointed Trustee reviews your case.
   

• You and I will attend a creditor meeting on Zoom about 45 days after your case is filed so that the Trustee and your creditors can ask you questions.  In almost every case, creditors do not bother to attend
   

• After about 3–4 months after your case is filed, your debts are discharged and your case is closed!
  Chapter 7 is especially helpful if you have limited income and no realistic way to repay your debt. It’s fast, effective, and gives you the freedom to move forward by eliminating the stress of constant financial pressure.
   

 

How Chapter 7 Works (for Small Businesses)

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If you own a small business that’s closing and has no path to recovery, Chapter 7 can help . A bankruptcy trustee handles the liquidation of business assets (if any) and distributes the assets fairly to creditors.

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Chapter 7 may be a good fit if:

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• Your business has no viable future or source of income.
   

• You need a clear legal way to end the business and move on.

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Business Chapter 7 doesn’t offer a discharge (debts are not “forgiven” in the same way as personal Chapter 7), but it protects the owner from navigating a stressful wind-down alone and may limit personal liability.

If you’re a business owner, we can also talk about ways to resolve any personal debt that may linger after the closing of the business, such as business debt you may have personally guaranteed. Bankruptcy can provide relief for all aspects of your financial life!

 

Who Qualifies for Chapter 7?

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To qualify as an individual, you’ll need to pass a "Means Test", which compares your income to the median income for your state and your expenses to those permitted by IRS guidelines. If your income is below the median or you don’t have enough disposable income to repay debts, you’ll likely qualify for Chapter 7.

For businesses, there’s no means test. However, Chapter 7 is only appropriate if you’re ready to close the business down.

Chapter 11 bankruptcy is a powerful tool that helps businesses reorganize their debt and keep operating while they get back on track.

 

If your business is struggling with cash flow, falling behind on payments, or facing creditor pressure, Chapter 11 gives you the chance to restructure what you owe, negotiate better terms, and create a plan to move forward with the approval of your creditors. You don’t have to shut your doors — in fact, the goal of Chapter 11 is to help your business survive and succeed.

Subchapter V bankruptcy is a simplified and more affordable version of Chapter 11, designed specifically for small businesses. It allows business owners to restructure their debt, catch up on missed payments, and keep their business running — all without the cost and complexity of a traditional Chapter 11 case. Subchapter V moves faster, requires less paperwork, is less expensive and gives you more control over your repayment plan.

 

You don’t need approval from creditors to confirm your plan, which can make the process smoother and less stressful. If your business is struggling but you believe it can recover, Subchapter V may be the tool that helps you get back on solid ground while protecting everything you’ve worked so hard to build.

Chapter 13 bankruptcy is a practical solution for individuals and sole proprietors who need time to catch up on debt without losing their property. It allows you to create a court-approved repayment plan — usually over 3 to 5 years — to pay back what you can afford while protecting your home, car, and other important assets. If you’re behind on mortgage payments, taxes, or business-related bills, Chapter 13 gives you the breathing room to reorganize without shutting everything down. It’s especially helpful for sole proprietors, since both personal and business debts can be included in the same case. With the right plan in place, you can stop collections, reduce stress, and move forward with confidence.  Another big plus – interest on unsecured claims  stops as soon as the case is filed.

 

What To Expect Once The Bankruptcy Case Is Filed

 

Once the bankruptcy petition is filed, all creditors listed on the bankruptcy petition receive notice of the case filing and all creditors must immediately stop their collection activity. The notice also advises creditors of the date set for the Meeting of Creditors, which is the date that you must appear with me via zoom and answer questions that the Trustee and your creditors may have. Once the date set for the first meeting of creditors has taken place, creditors typically will then have 30 days to object to any property that you have claimed as exempt, and 60 days to object to the debt forgiveness that you are seeking. In most cases, these dates will pass without objection.

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In Chapter 7 cases, absent creditor objection, the Bankruptcy Court will then issue an Order discharging you from the dischargeable debts listed on your bankruptcy petition and your case will then be closed.

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In Chapter 11 and 13, a repayment plan is presented to creditors in those Chapters have the additional option of objecting to, and/or voting for or against your repayment plan. In Chapter 13, if there is no objection to the plan, the Chapter 13 Trustee will submit an Order to the Bankruptcy Court seeking approval of the repayment plan and you will receive forgiveness of most types of debt that are not paid through your plan when your plan is completed. In Chapter 11, if there is no objection to the plan, the Court will typically hold a hearing to determine if the plan meets the requirements of the Bankruptcy Code and, if so, will enter an order confirming the plan. If objection to a plan filed in Chapter 11 or 13, the objection will be reviewed and resolved by the Bankruptcy Court. Corporations receive debt forgiveness when the plan is confirmed while individuals receive debt forgiveness when the plan is completed.