If you have fallen three or more payments behind on your mortgage, you may have begun receiving foreclosure notices from your mortgage company. If you’re behind on payments and have been unable to work out a payment plan with the bank, your property could be sold at foreclosure to satisfy the mortgage. In Massachusetts, foreclosures…
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Earlier this year, President Biden signed the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”) updating certain statutory thresholds for eligibility to be a debtor in Chapter 13 and Subchapter V of Chapter 11. The changes significantly increased the ceiling for eligibility for Chapter 13 relief. Previously, to be a debtor in Chapter 13,…
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This month, Governor Charlie Baker signed into law An Act to Clarify Homestead Estates which provides important updates to the Massachusetts Homestead Act, which was last substantially updated in 2010. In general, a Massachusetts homeowner who resides in the home as their principal residence may exempt up to $500,000 in equity from judgment and execution…
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One of the many benefits of personal bankruptcy is the ability to avoid a judgment lien on your residence. Judgment liens are liens imposed by a court order after a legal judgment has been entered against you. A judgment lien can remain on the property’s title for up to 26 years, carrying interest at a…
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Personal bankruptcy filings, particularly Chapter 13 bankruptcy have been rising steadily this year, according a recent article in the Wall Street Journal. October 2021 saw 10,764 personal Chapter 13 bankruptcy filings nationally, the highest level this year and the fifth monthly increase since May, although that is still far below the average filings in 2019.…
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When an individual files for bankruptcy, they are required to file schedules disclosing their household income and household expenses. Depending on your circumstances and which bankruptcy chapter you file under, your household income can affect your eligibility to obtain a discharge of your debts and how much you may be required to pay your creditors.…
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Following the onset of the Covid-19 pandemic in Massachusetts 2020, hundreds of thousands of Massachusetts residents filed to collect unemployment insurance benefits. In 2020 alone Massachusetts paid out more than $6 billion in unemployment benefits. Now, it turns out, the Commonwealth has determined that tens of thousands of those residents were ineligible to receive some…
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AS MORTGAGE FORBEARANCE PROGRAMS END, FORECLOSURES MAY BEGIN TO RISE. In response to the COVID-19 pandemic, Congress passes the CARES Act in April 2020 which included, among other things a foreclosure moratorium for all federally-back residential mortgages- that is, all mortgages backed by Fannie Mae, Freddie Mac or the FHA- approximately two thirds of all…
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Bipartisan Bill Proposes to Make Student Loans Dischargeable in Bankruptcy Student loans are the second largest category of consumer debt in America, after home mortgages. According to the Federal Reserve, over 45 million Americans owed more than 1.7 trillion in student loans. Approximately 15% of all outstanding student loans are in default at…
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In general, filing for bankruptcy can eliminate most types of debts. One major exception to this rule is for student loans which are usually excepted from discharge unless the borrower can demonstrate an “undue hardship”. The exception to discharge for student loans has generally been interpreted to apply to both public and private student loans. …
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