Find Bankruptcy Lawyers Near You in Attleboro, MA

The cost of hiring a bankruptcy lawyer in Massachusetts varies based on the complexity of your case and the chapter you file. For a straightforward Chapter 7 case in the Attleboro area, attorney fees generally fall between $1,200 and $2,500, with the court filing fee adding $338. Chapter 13 cases are more expensive, with attorney fees ranging from $3,000 to $5,000, plus the $313 filing fee. Many attorneys offer payment plans that allow you to pay the fee in installments over several months before filing. Some attorneys include the cost of mandatory credit counseling and debtor education courses in their flat fee, while others charge these separately, typically $20 to $50 per course.

It is important to understand that these are general estimates and actual costs may vary based on your specific circumstances, the attorney's experience, and the complexity of your financial situation. Some low-income filers may qualify for reduced fees or pro bono representation through legal aid organizations. Additionally, you may request to pay court filing fees in installments by filing a motion with the bankruptcy court. This information is provided for educational purposes only and does not constitute legal advice. You should consult with a qualified bankruptcy attorney in Massachusetts to obtain accurate cost information tailored to your case.

For residents and small business owners in Attleboro, Massachusetts, facing overwhelming debt can feel isolating and hopeless. Bankruptcy law provides a legal pathway to financial relief, governed by both federal statutes and Massachusetts-specific regulations. The two most common forms of consumer bankruptcy are Chapter 7 and Chapter 13, while Chapter 11 is typically reserved for businesses or individuals with debt exceeding statutory limits. Chapter 7, often called liquidation bankruptcy, allows individuals to discharge most unsecured debts in exchange for non-exempt assets being sold by a trustee. This option works best for those with limited income and few valuable assets. Chapter 13, by contrast, is a reorganization plan that allows debtors to keep all their property while repaying a portion of their debts over three to five years through a court-approved payment plan. This chapter is ideal for individuals with regular income who have fallen behind on secured debts like mortgages or car loans. Chapter 11, while commonly associated with large corporations, is also available to small businesses and individuals with high debt levels, offering more flexibility in restructuring obligations. Choosing the right chapter depends on your specific financial situation, income level, asset ownership, and long-term goals.

Massachusetts has its own set of bankruptcy exemption laws that determine what property you can keep when filing. Unlike some states that require debtors to use only federal exemptions, Massachusetts allows filers to choose between the state exemption system and the federal exemption system, but not both. This choice is critical because Massachusetts exemptions are generally more generous for homeowners. The Massachusetts homestead exemption protects up to $500,000 of equity in your primary residence if you file a declaration of homestead with the registry of deeds before filing bankruptcy. Without a recorded declaration, the automatic homestead exemption is $125,000. For vehicles, Massachusetts allows an exemption of up to $7,500 in equity for one motor vehicle. The state also provides a wildcard exemption of up to $1,000 for any personal property, plus an additional $500 for clothing and household goods. Other important Massachusetts exemptions include retirement accounts, which are fully protected under state law, and up to $500 per month in public assistance benefits. Specific state statutes governing these exemptions are found in Massachusetts General Laws Chapter 235, Section 34, and Chapter 188 for homestead protections. Consulting with a local attorney is essential to determine which exemption system provides the greatest protection for your specific assets.

The means test is a critical calculation that determines eligibility for Chapter 7 bankruptcy. This test compares your household income over the six months before filing to the median income for a household of the same size in Massachusetts. As of 2024, the median annual income for a single-person household in Massachusetts is approximately $82,000, for a two-person household about $105,000, for a three-person household around $125,000, and for a four-person household roughly $150,000. If your current monthly income falls below the median for your household size, you automatically pass the means test and qualify for Chapter 7. If your income exceeds the median, you must complete a more detailed calculation that subtracts allowed living expenses from your income. If the resulting disposable income is less than $100 per month, you still qualify for Chapter 7. If it is between $100 and $166 per month, you must compare it to 25 percent of your non-priority unsecured debt; if your disposable income is less than that percentage, you may still qualify. If your disposable income exceeds $166 per month, you are generally presumed to be abusing the system and must file under Chapter 13 instead. The means test is complex and requires careful documentation of all income sources and expenses, making professional guidance highly advisable.

One of the most immediate benefits of filing any chapter of bankruptcy is the automatic stay, a court order that goes into effect the moment your petition is filed. The automatic stay stops virtually all collection activities, including phone calls from creditors, wage garnishments, foreclosure proceedings, repossessions, utility shut-offs, and lawsuits. This protection gives you breathing room to work with your attorney and the court. For Chapter 7, the timeline from filing to discharge is typically three to six months. After filing, you must attend a meeting of creditors, also called a 341 meeting, about 30 to 45 days after filing. At this meeting, the bankruptcy trustee reviews your paperwork and asks questions about your finances. Creditors may also attend, though they rarely do in consumer cases. Approximately 60 to 90 days after the 341 meeting, the court issues a discharge order, eliminating your liability for most dischargeable debts. Before you can receive a discharge, you must complete two mandatory courses: a pre-filing credit counseling course from an approved agency, which must be taken within 180 days before filing, and a post-filing debtor education course, which must be completed before the discharge is entered. Certificates of completion for both courses must be filed with the court. Failure to complete either course can result in your case being dismissed.

The costs associated with filing bankruptcy in Massachusetts include court filing fees, attorney fees, and course fees. As of 2024, the federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees are set by the U.S. Bankruptcy Court and are non-negotiable, though you may request to pay them in installments if you cannot afford the full amount upfront. Attorney fees vary significantly based on the complexity of your case, your location, and the chapter you file. In Attleboro and the surrounding area, Chapter 7 attorney fees typically range from $1,200 to $2,500 for a straightforward case, while Chapter 13 fees are higher, often ranging from $3,000 to $5,000, because of the ongoing work required to administer the repayment plan. Many attorneys offer payment plans that allow you to pay fees over several months before filing. Some attorneys also include the cost of the credit counseling and debtor education courses in their flat fee. For those with very low income, pro bono resources are available through organizations such as the Volunteer Lawyers Project of the Boston Bar Association and local legal aid offices. Additionally, the U.S. Trustee Program maintains a list of approved credit counseling agencies, and some offer reduced fees for low-income filers. It is important to discuss all costs and payment arrangements during your initial consultation.

Life after bankruptcy involves both challenges and opportunities. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge stays for seven years. During this time, rebuilding your credit is possible through several strategies. First, obtain a secured credit card, which requires a cash deposit that becomes your credit limit. Use it for small purchases and pay the balance in full each month. Second, consider a credit-builder loan from a credit union or online lender. Third, ensure all your post-bankruptcy bills, such as rent and utilities, are paid on time, as payment history is the most significant factor in credit scores. Fourth, monitor your credit report for errors and ensure that discharged debts are correctly marked. Not all debts are dischargeable in bankruptcy. Debts that typically survive include most student loans, unless you can prove undue hardship in a separate adversary proceeding, which is very difficult to do. Recent tax debts for income taxes owed within the last three years may be dischargeable if certain conditions are met, but older tax debts and trust fund taxes are not. Child support and alimony obligations are never dischargeable. Debts arising from fraud, willful injury, or drunk driving are also generally non-dischargeable. Understanding what debts remain after bankruptcy is essential for planning your financial future.