Find a Bankruptcy Lawyer in Gloucester, Massachusetts

Find the right Bankruptcy attorney in Gloucester, MA

In Gloucester, Massachusetts, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally cleared, when they are unable to pay them. This hopefully allows them to begin over with a clean slate and move on, after having learned to better manage their use of credit in the process. However, bankruptcy should not be treated as a way to avoid debt that one simply doesn't feel like paying. It is meant to be a safety net for people or businesses who are really unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a heavily damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Therefore, it is advisable to consult with an experienced Gloucester, Massachusetts bankruptcy attorney, who can advise you of the costs and benefits of bankruptcy. Because the decision to file for bankruptcy depends very heavily on the facts of each individual case, the advice of a Gloucester bankruptcy attorney cannot be replaced.

Types of Bankruptcy in Gloucester, Massachusetts

There are three basic bankruptcy schemes that are most commonly used in Gloucester: Chapters 7, 13, and 11. Bankruptcy is a creation of federal law, so the process for filing for bankruptcy in Gloucester, Massachusetts will be roughly the same as it would be anywhere else in the U.S. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her property, and use the funds to pay creditors. While this doesn't sound like much of a relief at first glance, the upshot is that once the appropriate property is sold, and the proceeds directed to the creditors, all of the debtor's eligible debts are deemed paid in full, regardless of how much the creditors actually ended up getting. Not all of the debtor's property has to be sold off - the debtor will typically be allowed to keep things like a house, at least one car, some types of personal property, retirement accounts, and insurance policies. It should be noted that some debts are not dischargeable, and will have to be paid in full even if the debtor files for bankruptcy. This includes student loans, taxes, and criminal fines.

The other typically used bankruptcy system in Gloucester is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is authorized by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the arrangements that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is typically a better option for people who have a steady income. Though Chapter 11 bankruptcy can be used by individuals, it is almost always used by businesses. Similar to Chapter 13, Chapter 11 involves restructuring of debts, rather than complete discharge. The debtor is required to come up with a restructuring plan that lays out how it plans to cut costs, streamline operations, and pay its debts. The plan must then be authorized by a vote of participating creditors.

While going through Chapter 11 bankruptcy, a business can continue operating, and its stock can continue to be traded.

How Can a Gloucester Bankruptcy Lawyer Help?

One should not make the decision to file for bankruptcy in Gloucester easily. Before making any such decision, it would be highly advisable to contact an efficient Gloucester bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Gloucester

Gloucester, Massachusetts is a city located on Cape Ann, in Essex County. According to a 2007 Census estimate, its population is approximately 30,000 people. The area now known as Gloucester was first reached by British settlers in the 1620s. The town of Gloucester was so named in the 1640s (or that's when the first known written reference to the name exists) from a town of the same name en England. The town, thanks to its once-abundant supply of lumber, and its proximity to the ocean, used to be an important shipbuilding center. Though this industry has largely moved elsewhere, it is still an important part of the town's history and culture. It was also once a very important center for commercial fishing, and fishing is still an important component of the local economy. The architecture of Gloucester is quite beautiful, with many sections of the town comprised almost entirely of 100+ year old buildings, giving it the idyllic look distinctive to New England. There are also plenty of lawyers in and around Gloucester, Massachusetts who can handle whatever legal problem you might find yourself facing. New England is home to several exceptional law schools, and, by extension, many exceptional lawyers. If you have a legal issue, a Gloucester, Massachusetts lawyer can help.

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