Bankruptcy Lawyer for Worcester, MA

How bankruptcy cases proceed under Massachusetts law

A Massachusetts bankruptcy is a federal matter, not a state one, and a Worcester resident filing consumer bankruptcy goes to the United States Bankruptcy Court for the District of Massachusetts, which holds sessions in Boston, Worcester and Springfield rather than at any Superior, District or Probate and Family Court. Consumer filers choose between two chapters that answer different questions rather than different tiers of the same answer. Chapter 7 is the liquidation chapter: a trustee reviews the schedules and sells whatever property is not covered by an exemption, and in most consumer cases there is nothing left to sell, so the case ends in a discharge roughly three to four months after filing. Chapter 13 is the repayment chapter, used to stop a foreclosure, cure mortgage arrears over time, or protect property that exceeds the exemptions, with a plan that runs three to five years under 11 U.S.C. sec. 1322(d) depending on the filer's income relative to the state median.

Eligibility for Chapter 7 turns on a means test that compares a Worcester filer's income to the Massachusetts median family income for their household size, a figure the U.S. Trustee Program revises periodically, and income above the median does not end the inquiry, it moves the case to a second stage where allowed expenses are deducted. What a Worcester County filer keeps depends on a choice most people have never heard of: the Commonwealth has not opted out of the federal exemption scheme, so under 11 U.S.C. sec. 522(b)(1) a filer picks either the state exemption list at M.G.L. c. 235, sec. 34 or the federal list, and the choice is all or nothing, the two lists cannot be combined. Homeowners with real equity in a Worcester residence usually do better on that side, because the homestead exemption under M.G.L. c. 188, sec. 1 protects $125,000 automatically and up to $1,000,000 with a recorded declaration, well above the federal homestead figure.

Filing itself does something immediate regardless of which chapter is chosen: the automatic stay under 11 U.S.C. sec. 362 takes effect the moment the petition is filed and stops most collection actions, wage garnishments, lawsuits and foreclosure sales without a hearing. A discharge does not reach every debt; most student loans, recent tax obligations, domestic-support arrears and debts from fraud generally survive it. Bankruptcy matters at Jim Glaser Law are evaluated on the same intake call as every other matter the firm takes: the attorney listens to the income, expense, asset and debt picture for a Worcester filer and either handles the matter or connects the client with a Massachusetts consumer-bankruptcy partner attorney, at no extra cost to the client.

Massachusetts statutes and case law

• 11 U.S.C. sec. 362. The automatic stay; takes effect the moment a petition is filed and stops most collection actions, garnishments, lawsuits and foreclosure sales without a hearing.
• 11 U.S.C. sec. 522(b)(1). Gives a filer in a state that has not opted out, including Massachusetts, the choice between the federal exemption list and the state's own list; the choice is all or nothing.
• 11 U.S.C. sec. 1322(d). Sets the Chapter 13 plan length at three years for a filer below the state median income and five years above it, with five years as the outer limit.
• 11 U.S.C. sec. 109(h). Requires credit counseling from an approved agency within the 180 days before a petition is filed, with narrow exceptions.
• M.G.L. c. 188, sec. 1. The Massachusetts homestead exemption: $125,000 automatically for an owner occupying the home, and up to $1,000,000 with a written declaration recorded at the Registry of Deeds.
• M.G.L. c. 235, sec. 34. The Massachusetts exemption list, covering household goods, a vehicle, tools of trade, wages and a wildcard amount, chosen as an alternative to the federal list.

Common case patterns in Worcester

1. A Worcester filer with unsecured debt and no assets beyond the exemptions, headed toward a Chapter 7 discharge roughly three to four months after filing.
2. A Worcester homeowner behind on a mortgage who needs Chapter 13 to cure the arrears over time and keep the house.
3. A Worcester County filer whose income sits above the Massachusetts median, requiring the second stage of the means test before Chapter 7 eligibility is clear.
4. A Worcester homeowner with real equity comparing the Massachusetts homestead exemption against the federal exemption list before choosing which one to use.
5. A Worcester filer who also has a pending or potential injury claim, which must be disclosed as an asset of the estate regardless of which chapter is filed.

Typical timeline

1. Your free case review for a Worcester bankruptcy matter captures income, expenses, the asset and debt picture, and any pending creditor pressure such as a threatened foreclosure or a garnishment, because those facts decide which chapter fits and which exemption list protects the most. Before a petition can be filed, 11 U.S.C. sec. 109(h) requires credit counseling from an approved agency within the prior 180 days, with narrow exceptions.
2. Filing the petition triggers the automatic stay under 11 U.S.C. sec. 362 immediately, stopping most collection calls, lawsuits, wage garnishments and foreclosure sales without a hearing. Within roughly three to seven weeks afterward, the trustee holds a meeting of creditors, where the Worcester filer answers questions under oath; a bankruptcy judge is not present and creditors rarely attend. Throughout this period the firm either handles the Worcester County matter directly or connects the client with a Massachusetts consumer-bankruptcy partner attorney, at no extra cost to the client.
3. A straightforward Chapter 7 case typically reaches discharge roughly three to four months after filing. A Chapter 13 case runs the length of the court-approved plan, three years for a filer below the state median income and five years above it under 11 U.S.C. sec. 1322(d), with discharge entering once the plan is completed.

What a Massachusetts bankruptcy matter can achieve

• The automatic stay under 11 U.S.C. sec. 362, stopping most collection actions, garnishments and foreclosure sales.
• A Chapter 7 discharge of most unsecured debt, after a trustee reviews and administers any non-exempt property.
• A Chapter 13 plan that cures mortgage arrears and stops a foreclosure while the filer keeps the property.
• Protection of home equity under the Massachusetts homestead exemption, up to $1,000,000 with a recorded declaration.
• Protection of other property under either the Massachusetts exemption list or the federal exemption list, whichever the filer chooses.
• A determination of which chapter and which exemption list fits the filer's specific income, asset and debt picture.

Key terms

Chapter 7

The liquidation bankruptcy that discharges most unsecured debt after non-exempt assets, if any, are sold.

Chapter 13

The repayment-plan bankruptcy that reorganizes debt over three to five years while the filer keeps their property.

Means test

The state median-income comparison that determines Chapter 7 eligibility.

Automatic stay

The court order that stops most creditor collection actions the moment a bankruptcy case is filed.

Homestead exemption

State law protection for equity in a principal residence, automatic up to $125,000 and up to $1,000,000 with a recorded declaration.

Chapter 7 vs. Chapter 13

More questions from Worcester residents

• Do I file for bankruptcy in Massachusetts state court?

  No. Every consumer bankruptcy filed by a Massachusetts resident goes to the United States Bankruptcy Court for the District of Massachusetts, a federal court that holds sessions in Boston, Worcester and Springfield, not to the Superior Court, District Court or Probate and Family Court.

• Can I choose between Massachusetts and federal bankruptcy exemptions?

  Yes. Massachusetts has not opted out of the federal exemption scheme, so under 11 U.S.C. sec. 522(b)(1) a filer picks either the Massachusetts list at M.G.L. c. 235, sec. 34 or the federal list. The choice is all or nothing; the two lists cannot be combined.

• How much home equity does the Massachusetts homestead exemption protect?

  Under M.G.L. c. 188, sec. 1, $125,000 automatically for any owner occupying the home as a principal residence, and up to $1,000,000 if a written declaration has been recorded at the Registry of Deeds.

• What does Jim Glaser Law charge for a Worcester bankruptcy matter?

  Bankruptcy matters are billed on a fixed-fee or hourly basis, set out in the written fee agreement signed at intake. Bankruptcy matters are not handled on contingency. Your case review is free, and the attorney either handles the Worcester matter directly or connects the client with a Massachusetts consumer-bankruptcy partner attorney, at no extra cost to the client.

• Does bankruptcy erase every debt?

  No. Most student loans, recent tax obligations, domestic-support arrears and debts from fraud generally survive a discharge. A personal injury claim a filer already had when filing also is not erased; it becomes an asset of the estate and must be disclosed on the schedules.