Massachusetts Bankruptcy Law: How to Stop Collection Calls

Massachusetts Bankruptcy Law: How to Stop Collection Calls

Massachusetts bankruptcy law offers individuals a legal path to protect themselves from overwhelming debt and relentless collection calls. When financial troubles arise, creditors often resort to aggressive tactics to recover funds, which can lead to stress and anxiety. However, understanding how to leverage the state’s bankruptcy laws can help you regain control of your financial situation.

One of the primary benefits of filing for bankruptcy in Massachusetts is the automatic stay, which immediately halts all collection efforts. This legal protection is triggered the moment you file for bankruptcy, making it illegal for creditors to contact you in any capacity, including collection calls, letters, or lawsuits.

In Massachusetts, there are two common types of bankruptcy that individuals may file under: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” This option is suitable for individuals with limited income who wish to eliminate most unsecured debts, such as credit card bills and medical expenses. Once a debtor files for Chapter 7, the automatic stay takes effect immediately, providing relief from collection calls and harassment.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as the “wage earner’s plan,” allows individuals with a regular income to create a structured repayment plan to pay back their debts over three to five years. Similar to Chapter 7, filing for Chapter 13 immediately stops collection calls, giving you time to reorganize your finances without the pressure of creditors.

How to File for Bankruptcy in Massachusetts

To file for bankruptcy in Massachusetts, it’s essential to follow specific steps:

  1. Credit Counseling: Before filing, you must complete a credit counseling session from an approved provider. This is a requirement under federal law.
  2. Gather Financial Documents: Compile detailed records of your debts, expenses, income, and assets to support your bankruptcy petition.
  3. File Your Petition: Submit your bankruptcy petition along with the necessary documentation to the U.S. Bankruptcy Court in your district.
  4. Attend the Meeting of Creditors: After filing, you will attend a meeting where creditors can question you about your financial situation.
  5. Complete Financial Management Course: You must complete a financial management course before your debts are discharged.

Once your bankruptcy case is filed, the automatic stay protects you from all collection activity, including incessant calls from creditors. If they continue to reach out after the stay is in effect, they may be held accountable for violating bankruptcy laws.

Consulting a Bankruptcy Attorney

While it is possible to file for bankruptcy on your own, consulting a qualified bankruptcy attorney is highly recommended. An attorney can help navigate the complexities of Massachusetts bankruptcy law, ensure all paperwork is filed correctly, and defend your rights against unlawful collection practices. With legal assistance, you can ensure that your case proceeds smoothly, maximizing your chances of obtaining the relief you need.

Ultimately, Massachusetts bankruptcy law can provide crucial protection for those facing unmanageable debt. By filing for bankruptcy, you can stop collection calls and gain a fresh start, allowing you to focus on rebuilding your financial future.