In tough economic times, many people are faced with unemployment and unmanageable debt. Along with individuals, many Massachusetts corporations and businesses, large and small, face difficult financial circumstances each year. For most people, opting for bankruptcy is a difficult decision. If you think you may need the debt relief that comes from filing for Chapter 7, Chapter 11, or Chapter 13 bankruptcy, talk to the experienced bankruptcy lawyers at the Greater Boston law firm of Altman & Altman, LLP. We understand the mental, emotional, and even physical toll that challenging financial situations can have on you and your loved ones. Our attorneys are well-versed in recent developments in bankruptcy law, and are prepared to help you understand the often-complex process and your legal options.

A major purpose of bankruptcy proceedings is to afford debtors the opportunity for a “fresh start” in life. Note, however, that although bankruptcy filings may permit an individual to be discharged of his or her debts, discharge is not an absolute right and bankruptcy does not extinguish liens on property.

Chapter 7 Bankruptcy

Bankruptcy under Chapter 7 of the Bankruptcy Code is often termed “liquidation bankruptcy,” and provides for liquidation of a debtor’s assets that are not exempt from bankruptcy proceedings. With the aid of a trustee, creditors are able collect their debts from the individual or business according to their priority—meaning that secured creditors are paid first, followed by unsecured creditors, like preferred shareholders, if any cash remains.  Under Chapter 7, debts that cannot be repaid by the sale of assets may be forgiven.

Chapter 11 Bankruptcy

Chapter 11 Bankruptcy, often termed “rehabilitation bankruptcy” or “reorganization bankruptcy,” is more complex than Chapter 7 Bankruptcy. It involves reorganizing and restructuring debt in an attempt to permit an organization to recover and survive financial troubles. For example, a business or organization may work with creditors in order to change interest rates. Note, however, that an organization is not relieved of debt under Chapter 11; it still must pay back what it owes to creditors. Rather, Chapter 11 just changes the terms of debt payback. However, if a business is unsuccessful with Chapter 11 bankruptcy and cannot emerge as a healthier, operational organization, the business will often file under Chapter 7. 

Chapter 13 Bankruptcy

Individuals can file bankruptcy under Chapter 13, which is often termed a “repayment plan” or “debt adjustment.” Individuals who file under Chapter 13 have a source of income and may have non-dischargeable debts or be behind on their mortgage payments.  

Bankruptcy Representation at the MA firm of Altman & Altman, LLP

At the Massachusetts firm of Altman & Altman, LLP, we understand the panic and stress that financial hardship and bankruptcy considerations impose on individuals and their families. We also understand that filing for bankruptcy can be a complicated and length process, due to the intricacies of the Bankruptcy Code and the bankruptcy court system. If you, your business, or a loved one is considering filing for bankruptcy, Contact Us to schedule a free, confidential consultation with our experienced bankruptcy attorneys. The attorneys at the Boston and Cambridge law firm of Altman & Altman, LLP, pride themselves in their accessibility to clients. Our phones are answered 24 hours a day, 7 days a week, at (617) 492-3000 or (800) 481-6199 (toll-free). You may also Contact Us Online.