Bankruptcy Law Firm | Nashawaty & Rand | (781) 514-5450
The Call Is Free To Talk To A Lawyer Serving Boston & South Shore. 25+ Years Experience. Free Consultation. Ready To Serve You When and Where You Need the Most Help. Consumer Services. Timely & Cost-Effective. Services: Chapter 7, Chapter 13, Debt Settlement. And more!
Call Now for a Free Consultation
We offer free initial consultations. To schedule yours, call our office at 781-848-8545. You may also contact us online. We can arrange evening and weekend appointments to accommodate your schedule.
You may not get that, but in some cases, bankruptcy can mean Freedom ! Credit card companies and collection agencies can hound you for cash, but they already have enough cash. In the process, they also cause you stress and can damage your credit for life.
If you’re trying to pay your bills or have to decide between paying a bill and paying your mortgage, call Nashawaty & Rand. We’re dedicated to serving the citizens of Braintree MA, Boston MA, Quincy MA, Weymouth MA, Milton MA, Brookline MA, Dedham MA, Norwood MA, Newton MA, Cambridge MA, Somerville MA, Medford MA, Brockton MA, Franklin MA, Norfolk County MA and we are all set to listen to you and prepare a plan of action for you debt free. Do not wait. Pick the phone up today!
Our Hardworking Attorneys Have Been Helping Businesses and Families Through Bankruptcy for Over 25 Years
READY TO GET STARTED?
If you are seeking help with a financial crisis or disabling injury, we are here to listen. We want to provide you with the support and guidance that will maximize your rights under the law. Contact us now, and we promise to listen carefully to your story and give you the best legal service possible.
Why Choose Nashawaty & Rand?
Nashawaty & Rand serves residents from the South Shore (Braintree, Weymouth, Milton, Quincy, Randolph, etc.), Greater Boston (Boston, South Boston, Dorchester, Mattapan, etc.), and many other towns and cities across Massachusetts making it convenient for individuals in many areas to utilize our professional legal services. We understand that you have many options available when choosing a bankruptcy attorney; however, selecting the right one will only help to increase your chances of success.
Bankruptcy is not the end of the world. It’s a beginning!
You aren’t alone in your financial distress!
A number of our customers feel about filing a bankruptcy case angry or afraid. Please note that there is no reason to feel it means you are a failure or to have feelings of submitting. Very likely you’ve got friends, neighbors and coworkers have registered, and you just don’t know about it. Additionally, many people and companies have gone bankrupt including:
Misconceptions About Bankruptcy
Learn How Bankruptcy May Benefit You
For consumers to be informed about bankruptcy, they ought to obtain an attorney’s advice. As a consequence of misconceptions and myths about bankruptcy, a lot of people don’t consider filing for bankruptcy as a remedy. This is unfortunate since bankruptcy may provide a person’s fiscal predicament with the practical and most viable remedy.
It has always amazed us to see the number of clients that, after having bankruptcy explained, said such things as “Is this legal?” Or”I wish I knew about that a year ago,” or”I feel like a heavy burden was lifted from my shoulders.” They realize that they now have a means of tackling their devastating financial troubles.
Too often people in debt attempt to resolve their situation by borrowing more money (e.g., refinancing their home, taking cash advances on their credit cards, or even asking relatives for a loan). What they are currently doing is devoting themselves further and further in debt and just delaying the inevitable — the time when they will no longer have the ability to pay their invoices. People should be aware that bankruptcy is a fiscal alternative, and they can evaluate its advantages, by knowing the truth. We will focus on three common ones, although there are numerous myths and misconceptions regarding bankruptcy.
Misconception #1 — You Have To Be Broke
You do not need to be destitute to apply for bankruptcy. So if you are employed, or you own a house, a vehicle, or other assets (e.g., jewelry, furniture, a television, or have retirement funds such as a 401(k), IRA, or retirement ) and believed you weren’t qualified to apply for bankruptcy, you’ll be surprised to know that not only can you declare bankruptcy, but you also will probably have the ability to keep most, if not all, of your resources.
Don’t forget to remember that bankruptcies are filed by every segment of the public (i.e., people from all different backgrounds, occupations( and incomes). Because there are different types of bankruptcies, targets and an individual’s condition will determine which sort of bankruptcy is greatest.
Misconception #2 — No Credit For Seven Years
A frequent misconception is that an individual cannot get credit for seven years after filing bankruptcy. There is no law concerning when credit can be obtained by an individual. Theoretically, a person can get credit back at any time. Realistically you will not get credit until you take action to make yourself worthy of the charge. So it’s important to work toward reestablishing your credit once you have filed for bankruptcy. Some suggestions for doing so include getting a passbook loan using a co-signer or applying for a secured credit card loan.
Misconception #3 — The Stigma
Many men and women feel there will be a stigma attached to their filing for bankruptcy. There’s no question that lots of years ago there was a stigma associated with bankruptcy. This view has altered because bankruptcy is a lot more prevalent. In 2012, over 1,300,000 bankruptcies were filed over 16,000 cases in Massachusetts, and the USA were filed.
Usually, the stigma of bankruptcy is in a person’s mind. People do not understand that many individuals they connect or who are friends have filed for bankruptcy. Unless they told you, however, you wouldn’t know about their bankruptcies. That you don’t walk around with a large sign saying you are in 19 after you file for bankruptcy. Therefore, the people that are going to understand about your filing will be anyone and your creditors you decide to tell.
THINKING ABOUT WHAT BANKRUPTCY COULD DO TO HELP YOU GET FINANCIALLY FREE?
Turbulent times involve a reasoned approach and a calm voice. We help companies and people file for bankruptcy protection as provided under the United States Bankruptcy Code. Our aim for our consumer bankruptcy clients is to help them acquire a financial start that is purposeful. Our goal for our business clients is to help them get the breathing room to reorganize to a leaner, workable concern.
People: Fresh Financial Start
We understand how daunting the possibility of filing bankruptcy can be. You may be concerned about the stigma attached to bankruptcy or exactly what it means for the credit future. We can assist. If you’re facing creditor calls, harassing, or are just overwhelmed with debt, then we know what you’re currently going through. You may be eligible to apply for protection of the Bankruptcy laws. We can advise you regarding the options available to you, your rights and each stage of the bankruptcy process.
Our first consultation is free. We all know how the law works, what it can (and can’t ) do, and what alternatives exist for people experiencing financial distress. During our first meeting, we will talk about options available for your situation and will explain the basics such as the differences between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy, in addition to other measures for debt. We give each client individualized attention during the bankruptcy procedure.
Firms: Liquidation or Reorganization
Every company contends including the chance that its cash flow might become insufficient to satisfy its obligations, with doubt. While this happens or seems imminent, reorganization provides a means to achieve the best business result that circumstances permit. Chapter 11 of the Bankruptcy Code gives employers and distressed people an opportunity to reorganize their financial affairs. Whether via an out-of-court workout or bankruptcy, these things involve a complex interplay between the interests of various constituencies. Bankruptcy attorneys need to understand a client’s business objectives and how the goals of the limitations and other parties imposed by the circumstances are most likely to affect the resolution of the subject. In a Chapter 11 case, the debtor has the right to suggest a strategy for dealing with the creditors and bankruptcy courtroom. We represent debtors in Chapter 11 reorganizations and so are experienced in all stages of Chapter 11 proceedings. We work with financial advisors and clients to put the very best reorganization for your client, and also negotiate with lenders and creditors’ committees to reach consensus on strategy problems.
When reorganization is not feasible or advisable liquidation through Chapter 7 bankruptcy is an effective method to lessen the dangers and burdens related to a company. There may also be other options, for example, liquidation or receivership under state legislation, for companies. We represent clients in a wide selection of situations where companies are no more profitable, help business owners select the best financial choices for their circumstances, and direct them through every stage of the procedure.
Bankruptcy Litigation/Adversary Proceedings
Our attorneys strive to solve issues without needing to resort to litigation and are proficient at creating effective reorganization and liquidation strategies, but we develop and execute legal strategies constantly aware of and ready for the possibility of litigation. We represent clients in contested confirmation hearings, lenders’ rights claims (such as commercial groups and mechanics’ lien authorities ), asserts disputes, challenges into the automatic stay, preference actions, fraudulent transfers and other litigation in the Bankruptcy Court. We know that litigation isn’t the end itself in the bankruptcy context, but that it is occasionally a necessary means to resolving disputes that are inherent given the legal and economic constraints involved.
Learn About Rebuilding Your Credit, so Life Becomes Smooth Sailing
NO NEED TO FEAR
Rebuilding Your Credit After Bankruptcy Fiscal conditions’ pneumonia, bankruptcy, is without a doubt a serious setback, and you will feel its effects on your finances for a while. However, bankruptcy is not unusual (over 500,000 Americans file annually), and it does not have to be deadly. Your financial life isn’t getting buried; by discharging and/or reorganizing your debt, you are seizing the chance for rebuilding your credit in a way you can be pleased with.
In fact, by adhering to a small number of techniques that are recognized, you can start to repair your credit almost immediately. Even though bankruptcy can linger on your own credit report as long as 10 years, if you stay with the program, you might be back in the market for a car loan or a home mortgage in as few as two years.
Your Credit Score after Bankruptcy
Think hard about any decision involving insolvency, because if you commit to it, your credit score is going to take a whack. Before you commit, know you’ve done everything you can to climb out of your debt gap: demanding, tight budgeting; carrying a second job or performing freelance/gig job; selling off assets; consulting with a nonprofit debt counselor.
Been there and done that? OK. Brace yourself.
Just how much of a whack you’ll suffer depends on numerous factors, some of which are nearly impossible to predict. This much is sure: Depending on which kind of bankruptcy you file — Chapter 7 (discharge debts) or Chapter 13 (reorganize debts; buy on a payment plan) — you are likely to see your score gap involving 160 and 240 points.
Ironically often lose points. An eight-year-old FICO study showed an individual using a 680 credit rating and a person with a 780 losing 240 points. Both bankrupts are put by the plunge at exactly the neighborhood of 530-540. In short, customers with credit histories tend to lose; those with credit scores already have a lot of their financial problems baked into their histories.
Create a New Budget
Except for those driven to bankruptcy catastrophes or by unforeseen events, the most likely offender in fiscal disaster stories is that the petitioner’s failure to adhere with a realistic budget.
This is nothing new. The excellent British author, Charles Dickens, described the razor’s edge between joy and distress as overspending one’s earnings by mere pennies.
So, create a fresh budget. Arrange your expenditures that are post-bankruptcy in fixed three columns, variable, and irregular. Fixed expenses include, by way of instance, your housing payment, car payment (if any), and, in case you’ve selected Chapter 13, any normal payment to satisfy your reorganization.
VARIABLE COSTS ARE THOSE WHICH ARISE EVERY MONTH BUT HAVE A TENDENCY TO CHANGE: FOOD, CLOTHES, ENTERTAINMENT, GAS , UTILITIES. THAT CAN BE AN AREA.
Examine at 3-to-6 months of bank and credit card bills.
List down to the penny where your money has been moving.
Identify areas of overspending. Do you really require premium cable and/or unlimited data that is cellular? Is that new dress/suit necessary? Are you buying premium gas as it might run happily on mid-grade?
Irregular expenses are not part of every month’s paying, but do appear sometimes — sometimes . Is insurance paid by you quarterly? Medical expenses often aren’t scheduled. Take a look at everything you spend on presents for others. Again, review your bank and credit card bills with an eye to future trimmings.
Get a handle on your own savings. With bankruptcy having cleaned your slate, or at least made it more manageable, you are at the unfamiliar situation of being in command of your finances. That is the purpose of insolvency, says Judge McEwen, if you seize the opportunity and it is in everybody’s best interest.
Without bankruptcy protections, she notes, we’d have much fewer risk-taking entrepreneurs whose successes generate jobs, build stable areas surrounding better schools turning out bright graduates eager to become the risk-taking entrepreneurs of the future. “Without bankruptcy, we’d have fewer dreamers,” the judge says. “There could be no chances. Going broke could be a dead end. … Bankruptcy gives everybody a right to attempt to fail, then get another chance.”
A number of well-tested budget plans exist, a lot of these based on a simple all-cash envelope-or-wallet method: Turn your spending money into currency, split it into envelopes or wallets for designated purposes, and invest only what you have allocated on each individual expense. For the digitally savvy, there are online budgets or smartphone programs that accomplish the same job.
Make your savings inconvenient and automatic to receive your hands on. Set up at a bank or establish a relationship with a credit union. Take a portion of your check. Maintaining your savings account in a separate institution from the checking account is likely to make transfers harder, and that’s a good thing.
Beware Credit Card Fees; Use New Credit Wisely
Because you’re a bad risk, some businesses attempt to charge dangerously substantial fees for secured cards, occasionally as high as $200 for a $500 card. Talk about adding insult to injury.
But we say”attempt,” since you’ve got choices. Shop for a low- or zero-fee card, make you the choice, and research the fine print. For interest rates on accounts carried over, keep a sharp eye out. Make certain your new card provider reports to all three credit monitoring agencies. Some do not, and you’ll want the entire world to see how well post-bankruptcy you’re doing.
When you’ve procured a secured credit card, then you will demonstrate that outstanding performance by using the card wisely, never going above 30% of the balance limitation, and paying off the balance every month. Whenever you are comfortable paying off the secured credit card, then you might be ready to try to get an unsecured card. Yet expect high fees, rejection, or interest rates.
But given adequate time (typically 1 year) and diligence using your secured card — balances kept low and paid off every month — you need to be able to acquire a regular, unsecured credit card — one with rewards or money back. However, the rules do not change: When you do get an unsecured credit cardkeep the balances paid and low off — time — yearly.
Building Credit using a Auto Loan
In rebuilding your credit rating the next step will be to acquire some kind of loan. Car loans are a good starting point, particularly a one with payments. Handling the dual responsibility of automobile and credit card payments will boost your credit score.
You could be place by handling your credit back above 700 — the good-risk range — in as few as four years. Again, this means being secured, paying balances off, and minimizing your credit card balance utilization.
Buying a Home after Bankruptcy
A bankruptcy will linger in your credit report for as many as 10 decades, as noted above. This, however, does not necessarily mean that you cannot qualify for a mortgage for 10 decades.
Mortgage lenders benefit from a piece of collateral: the housing inventory behind the loan. Furthermore, in the event the borrower is able to put down a significant down payment — 20 percent or more — underwriters could be confident they won’t be stuck using an unmovable bit of real estate in the event the home has to be repossessed.
Lenders want to be sure about the borrower’s capacity to repay. Besides all the investigation into job and income equilibrium, they’ll look at the applicant’s payment history.
After a bankruptcy you are going to need to temper your fever that is new-house for, likely. Meanwhile, you will differentiate yourself as somebody who makes timely payments.
Additionally, the more you can wait after bankruptcy, and the better you’re able to rebuild your credit, the more likely you are to hit on a better deal. A half-point difference on a 30-year fixed-rate loan could add up to nearly $100 per month, and tens of thousands of dollars over the life span of the loan.
Once you’re in the market , after approximately two years — be sure to include loans on your shopping. These tend to be forgiving of credit scores that are bad. Investigate FHA- or, in case you are looking in a rural neighborhood, USDA-backed loans. Veterans who have been two years with credit post-bankruptcy can get their VA benefits.
The Bottom Line
Bankruptcy will be thought of as a negative in your credit file, at least for 7 to 10 decades. There’s absolutely no way around that. Bankruptcy does not erase a bad credit history, but it does give you another opportunity. Do not waste it. Demonstrate you’ve learned a lesson regarding personal finances, and your credit score will begin to reflect that.
Remember, you have a right to neglect, and still come back strong. You can emerge from bankruptcy including all the financial rights and rights you want to be successful.