Find a Bankruptcy Lawyer in Leominster, Massachusetts

Find the right Bankruptcy attorney in Leominster, MA

In Leominster, Massachusetts, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally absolved, when they are unable to pay them. This hopefully allows them to start 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 honestly unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a severely damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Therefore, it is prudent to consult with an experienced Leominster, 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 Leominster bankruptcy attorney cannot be substituted.

Types of Bankruptcy in Leominster, Massachusetts

In Leominster, Massachusetts, there are three basic bankruptcy schemes that are most often used. They are recognized as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Leominster, Massachusetts will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is complete, and the proceeds handed over to the creditors, the debt is viewed as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other popular bankruptcy system in Leominster is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor will find manageable, given his or her income, and that will result in the creditors being paid in a reasonable amount of time. When a repayment plan is approved by a court, creditors are legally barred from attempting to collect under the original terms of their contract with the debtor. Though Chapter 11 bankruptcy can be used by individuals, it is almost exclusively 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 approved by a vote of participating creditors.

One advantage of Chapter 11 bankruptcy is that it allows a business going through it to continue operations, and to trade its stock.

How Can a Leominster Bankruptcy Lawyer Help?

The need to consider all the options and consider the costs and benefits of filing for bankruptcy in Leominster cannot be overstated. If you are considering filing for bankruptcy, it would be a good idea to speak with a Leominster bankruptcy attorney beforehand.

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Life in Leominster

Leominster, Massachusetts is a cityin Worcester County, and has a population of about 42,000 people.

Prior to settlement of the Leominster area by Europeans, the area had been inhabited by various Native American tribes for thousands of years, and like most cities in the New England region, it was settled by Europeans in the mid-1600s.

As Leominster began to experience industrial growth in the 19th and 20th centuries, it became a major center for the manufacture of plastics, and various plastic products. Interestingly, this has its origins in the 1700s, when Leominster was a major center for the comb industry, with fine combs originally being made of whale baleen. The industry quickly transitioned to using plastic as soon as it became available, and helped to develop many new formulations of plastic, some of which are still in use.

As with many cities which saw industrial development in the 19th century, Leominster's industrial character has begun to decline. However, Leominster is still home to many businesses and schools.

If you live in Leominster, Massachusetts and need an attorney,chances are good that you'll be able to find one. Leominster, Massachusetts lawyers are able to hand many different kinds of cases. If you need legal help, you should call a Leominster, Massachusetts lawyer as soon as possible.

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