Law Office of Vlad von Timroth

(Updated July 2010)

Additional bankruptcy information can be found on the U.S. Courts website on Bankruptcy Basics.

Question 1.

What is Bankruptcy?

Bankruptcy is intended to give people a fresh start free of debt. In bankruptcy a person either gets released from their dischargeable debts (Chapter 7) or is allowed to reduce their debts to a manageable level and maintain a payment plan (Chapter 13). Although bankruptcy certainly helps some people out of bad situations, the bankruptcy laws are not simply charity. They are meant to encourage entrepreneurial risk taking and the freedom that the U.S. economy depends on for growth.

Why do people file bankruptcy in Massachusetts? In my experience as a bankruptcy lawyer, these are some common scenarios:

• You are trying to keep debts current but are borrowing money from one card to pay other (robbing Peter to pay Paul). This situation cannot last forever.
• You are trying to keep debts current by using your savings but can see the day when your savings will run out. Don’t wait until it does.
• You are trying to keep debts current but you are going without the essentials of life to do so. You do not need to do this.
• You have defaulted on credit card debt and are dealing with debt collectors who are not willing to help you and are rude and harassing
• You have defaulted on credit card debt and are being sued or already have civil judgments against you.
• You have looked into credit counseling and found that they demanded a payment you could not afford or, worse, you have been essentially scammed out of money.
• You have lost a job or had a reduction in income.
• You have incurred substantial medical debt because of illness or an accident.
• You have fallen behind on house or car payments and are facing foreclosure or car repossession.
• You had a business that failed or is failing.

People often feel embarrassed and feel like there is no hope when they find themselves in situations like these. They may know that bankruptcy exists but are scared by it. Bankruptcy is not something to take lightly, but it is not as scary as you might think. You owe it to yourself to at least know your options. Bankruptcy sometimes is the best way out of a bad situation and on to a better future.

Filing for bankruptcy requires a prior analysis of your income and assets. Massachusetts residents interested in more Chapter 7 and Chapter 13 bankruptcy information can reach Attorney Von Timroth at 508-753-2006.

The Law Office of Vladimir von Timroth offers a free, one-time consultation to clients. A small consultation fee is charged for complex business issues.

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