Find Bankruptcy Lawyers Near You in Everett, MA

The typical cost for a Chapter 7 bankruptcy case in Massachusetts ranges from $1,200 to $2,500 in attorney fees, plus the $338 federal filing fee. For Chapter 13 cases, attorney fees generally fall between $3,000 and $5,000, with a $313 filing fee. Many bankruptcy lawyers in the Everett area offer flexible payment plans that allow clients to pay attorney fees in installments over several months before the case is filed. Some attorneys also include the cost of mandatory credit counseling and debtor education courses in their flat fee, while others charge these separately. Pro bono representation is available through legal aid organizations for individuals meeting low-income guidelines.

Please note that this information provides general cost estimates and is not legal advice. Bankruptcy laws and fee structures can change, and individual case complexity may affect actual costs. You should consult with a qualified bankruptcy lawyer to obtain specific fee information for your situation.

Bankruptcy law in Everett, Massachusetts provides individuals and businesses a legal pathway to address overwhelming debt through federal court proceedings. The three primary chapters available are Chapter 7, Chapter 13, and Chapter 11, each designed for different financial circumstances. Chapter 7, often called liquidation bankruptcy, allows individuals to discharge most unsecured debts such as credit card balances, medical bills, and personal loans in exchange for non-exempt assets being sold by a trustee to pay creditors. This chapter is typically appropriate for those with limited income and few assets who cannot realistically repay their debts over time. Chapter 13, known as reorganization bankruptcy, requires filers to propose a three-to-five-year repayment plan to catch up on secured debts like mortgage arrears or car loans while paying a portion of unsecured debts based on disposable income. This chapter suits individuals with regular income who want to protect assets like a home from foreclosure or a vehicle from repossession. Chapter 11 is generally reserved for businesses seeking to restructure their debts and operations, though high-income individuals may also qualify. For most Everett residents, the choice between Chapter 7 and Chapter 13 depends on income level, asset value, and the nature of the debts involved.

Massachusetts bankruptcy law incorporates specific state exemptions that filers may use instead of the federal exemption system. The Commonwealth allows debtors to choose between the Massachusetts state exemptions or the federal bankruptcy exemptions, but not both. The Massachusetts homestead exemption is particularly generous, protecting up to $500,000 of equity in a primary residence for most filers, with an increased exemption of $500,000 for those over age 62 or disabled. For individuals who do not own a home, the state offers a wildcard exemption of up to $1,000 in any property, plus an additional $500 for clothing and household goods. The vehicle exemption under Massachusetts law protects up to $7,500 of equity in one motor vehicle. Other state exemptions include up to $500 per week of earned but unpaid wages, $2,500 in jewelry, and $15,000 in farm or fishing equipment. Massachusetts General Laws Chapter 235, Section 34 governs these exemptions, and filers must carefully inventory all assets to determine which exemption system provides greater protection. A bankruptcy lawyer can help analyze whether the state or federal exemptions offer better asset protection based on the filer's specific property holdings.

The means test is a critical calculation that determines eligibility for Chapter 7 bankruptcy in Massachusetts. This test compares the filer's current monthly income over the six months preceding 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 $89,000, while a family of four has a median income of about $130,000. If the filer's income falls below the state median, they automatically qualify for Chapter 7. If income exceeds the median, the filer must complete a detailed calculation of allowable expenses under IRS standards to determine disposable income. If the resulting disposable income over five years is less than $8,175, the filer still qualifies for Chapter 7. If disposable income exceeds $13,650 over five years, the filer cannot use Chapter 7 and must file under Chapter 13 instead. The means test form requires documentation of all income sources, including wages, self-employment earnings, rental income, and government benefits. For Everett residents with irregular income or seasonal work, the six-month lookback period can sometimes create challenges that require careful planning with legal counsel.

Filing bankruptcy triggers an automatic stay, which is an immediate court order that stops most collection actions against the debtor. Creditors must cease phone calls, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits once the bankruptcy petition is filed. This protection begins the moment the case is electronically filed with the bankruptcy court in Boston, which serves Everett residents. The timeline from filing to discharge varies by chapter. For a Chapter 7 case, the discharge typically occurs about three to four months after filing, assuming no complications. The process includes a meeting of creditors, also called a 341 hearing, held approximately 30 to 45 days after filing, where the trustee reviews the petition and asks questions about assets and debts. For Chapter 13 cases, the discharge occurs after the debtor completes all payments under the three-to-five-year plan. Mandatory credit counseling from an approved agency must be completed within 180 days before filing the bankruptcy petition. Additionally, a debtor education course must be completed after filing but before receiving the discharge. Both courses are available online or by phone and typically cost between $10 and $50 each. Failure to complete either course can result in the case being dismissed without a discharge.

The costs associated with filing bankruptcy in Massachusetts include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as of 2024. These fees can sometimes be paid in installments with court approval, though the fee must be paid in full before the discharge is entered. Attorney fees for Chapter 7 cases in the Everett area typically range from $1,200 to $2,500 for a standard case, depending on complexity. Chapter 13 attorney fees are generally higher, ranging from $3,000 to $5,000, because these cases require more extensive court filings, plan development, and ongoing case management over several years. Many bankruptcy lawyers offer payment plans for their fees, allowing clients to pay in installments before the case is filed. For individuals with very limited income, pro bono legal services may be available through organizations such as the Volunteer Lawyers Project of the Boston Bar Association or the Massachusetts Legal Assistance Corporation. The bankruptcy court also provides a list of approved credit counseling and debtor education agencies, which charge nominal fees. It is important to note that attorney fees are separate from court costs and must be discussed openly during the initial consultation.

Life after bankruptcy requires strategic planning to rebuild financial health. A Chapter 7 discharge remains on a credit report for ten years from the filing date, while a Chapter 13 discharge stays for seven years. Despite this negative mark, many individuals find they can begin rebuilding credit immediately after discharge. Secured credit cards, which require a cash deposit as collateral, are often the first step toward reestablishing creditworthiness. After twelve to eighteen months of responsible use, many filers qualify for unsecured credit cards with modest limits. Timely payment of all post-bankruptcy obligations, including rent, utilities, and any reaffirmed debts, helps improve credit scores over time. Some debts survive bankruptcy and remain legally enforceable. Student loans are generally not dischargeable unless the debtor can prove undue hardship in an adversary proceeding, which is difficult to win. Most tax debts from recent years, particularly income taxes less than three years old, are not dischargeable. Child support and alimony obligations are never dischargeable, and debts for personal injury caused by drunk driving or for fraud also survive. Debts not listed in the bankruptcy schedules are not discharged. For Everett residents, understanding these exceptions is crucial to avoid surprises after the case concludes.