Find a Bankruptcy Lawyer in Worcester, Massachusetts

Find the right Bankruptcy attorney in Worcester, MA

In Worcester, Massachusetts, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally excused, 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 truly 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 Worcester, 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 Worcester bankruptcy attorney cannot be substituted.

Types of Bankruptcy in Worcester, Massachusetts

In Worcester, Massachusetts, 3 types of bankruptcy procedures are in common use: Chapter 7, Chapter 11, and Chapter 13. Being governed by federal law, the procedures involved in filing for bankruptcy in Worcester, Massachusetts will be about the same as anywhere else in America. Chapter 7 bankruptcy, or "liquidation," requires the debtor to sell some of his or her property to the highest bidder, and using the proceeds from the sale to pay down as much debt as possible. Once the sale is complete, all dischargeable debt is deemed paid in full, whether or not the sale was able to raise the entire amount owed. You should note that some property (usually the types of property deemed essential) is fully or partially exempt from liquidation, meaning that the debtor gets to keep it. This includes houses, cars, and retirement accounts, among others. Some types of debts, however, cannot be discharged in bankruptcy, including taxes, child support, and student loans.

Under Chapter 13 bankruptcy in Worcester, most of the debtor's debt is not discharged. Instead, the bankruptcy court, working with the debtor and participating creditors, work out a payment plan that allows the debtor to pay off most of his or her debts over a longer period of time, thereby theoretically making the debt far more manageable. Once a payment plan is approved by the court, creditors are prohibited from attempting to collect payment under their original agreements that gave rise to the debt in the first place. Although it can be used by individuals, Chapter 11 bankruptcy is used almost exclusively by businesses. Not unlike Chapter 13, Chapter 11 focuses on restructuring of debt, rather than discharging it. Chapter 11 requires that the debtor come up with a reorganization plan designed to reduce debt and cut costs. Before being implemented, this plan must be approved by a majority vote of participating creditors.

One main advantage of Chapter 11 bankruptcy is that it allows businesses to continue their operations while the process plays out. Furthermore, their stock can still be bought and sold.

How Can a Worcester Bankruptcy Lawyer Help?

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

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Life in Worcester

The City of Worchester is the seat of Worchester County, Massachusetts and home to 190,000 residents. As the 2nd largest city in New England after Boston, Worchester is known as the "Heart of the Commonwealth." Consequently, the Worcester City Seal is emblazoned with a heart.

The Worchester City Seal is also appropriate because there are a wide range of health-related businesses and schools in town. UMass Memorial Health Care, University of Massachusetts Medical School, Saint Vincent Hospital, Hanover Insurance, and the Fallon Clinic round out 5 of the top 8 employers in Worchester.

Other businesses, like Polar Beverages who operates two bottling facilities in Worcester, make use of the local staff of lawyers. Worcester lawyers consult clients on a wide range of cases.

Worcester has an abundance of Victorian era mill architecture like at the Jesuit College of the Holy Cross. The college was founded in 1843 and is one of the oldest Roman Catholic colleges in the United States and the oldest in all of New England. Worcester has a number of other universities including Clark University, Worcester Polytechnic Institute, Becker College, Assumption College, and the Massachusetts College of Pharmacy and Heal Sciences that bring a lot of students and tourists to the town.

Additionally, the Worcester Art Museum has famous works by the likes of Rembrandt, Renoir, Gauguin, Kandinsky, and Jackson Pollock on display. The Higgins Armory Museum is an excellent example of Art Deco steel buildings and is the only museum in the Northern Hemisphere dedicated to arms and armor.

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