Hines Law Offices

Filing for Bankruptcy, Do You Really Need a Lawyer? | MA Bankruptcy Firm Legally you do not need a lawyer to file for bankruptcy. Individuals can file for bankruptcy without a lawyer. This is called filing pro se. The forms you need to file can be obtained from your local court. While filing the paperwork may appear relatively easy to accomplish, making a mistake in filing could cost you thousands of dollars in assets, denial by the courts of the discharge of your debt, and can even place you in legal jeopardy for fraud. While it may be tempting to try to save money and navigate the bankruptcy process by yourself, most professionals that are knowledgeable on bankruptcy issues recommend against filing pro se. According to the U.S. Courts website, “seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences.”1 Understanding what a lawyer does for a client filing for bankruptcy helps clarify why seeking a lawyer’s assistance in bankruptcy proceedings is important. There are a lot of critical decisions to make that start even before you actually file for bankruptcy. Choosing the Right Debt Solution The first major decision is whether bankruptcy is the right solution for your particular situation. A bankruptcy attorney will help you examine your debts and assets and will counsel you on whether bankruptcy is the best approach or if other options may be available to you. If the bulk of your debts, for instance, are student loans, which are not eligible for bankruptcy protection, filing for bankruptcy would not be a good option.2 The next key decision, if bankruptcy is determined to be the best option in your case, is which type of bankruptcy to file. The bankruptcy process is governed by the federal court system. Chapter 7 and Chapter 13 are the most common options available to individuals. Each option has its own advantages and disadvantages. Liquidation A Chapter 7 bankruptcy is the fastest and can usually be accomplished in three to five months.3 It allows you to eliminate many types of unsecured debt, such as medical bills and credit card payments. In a Chapter 7 bankruptcy you will have to sell assets except for those covered by state or federal exemptions. A Chapter 7 bankruptcy filing doesn’t provide a way for you to catch up on missed mortgage payments to avoid foreclosure or repossession.4 Repayment A Chapter 13 bankruptcy makes it possible, if it is determined you have the means, for you to repay your debts following a court-approved payment plan which usually can be done over a three- to five-year period. You can keep most of your assets and even pay all or a portion of your attorney fees through the repayment plan. Basically, Chapter 7 is focused on liquidation to pay debts and Chapter 13 is focused on reorganization to pay debts.5 Issues like whether you file individually or jointly with a spouse, the impacts on co-signers of any loans you incurred, and other considerations are areas about which a qualified attorney can provide expert advice. Knowing What Not to Do Before you file for bankruptcy your attorney will help you avoid one of the common mistakes people make when filing for bankruptcy on their own. This is a requirement that you complete a pre-bankruptcy credit counseling class within the 180 days before your bankruptcy filing. If you file for bankruptcy without taking the class a judge has little option but to dismiss the case and the filer is out hundreds of dollars in court costs. An experienced bankruptcy attorney can also provide advice on timing filings so you can keep tax refunds and protect bank accounts and other assets. They will also provide advice on why it’s not a good idea to repay debts to family or try to hide assets by selling them to family or friends prior to filing for bankruptcy. Your attorney will file the necessary paperwork and will guide you through the entire bankruptcy process, filing any additional documents requested by the courts and responding to deadlines. Your attorney will attend and represent you at all mandatory hearings, including the 341 meeting of creditors. A creditor can object to your bankruptcy filing and an experienced attorney with an in-depth understanding of your circumstances, and knowledge of local courts, can prove invaluable if your filing is challenged. Filing for bankruptcy, or even thinking about filing for bankruptcy, is an emotionally charged experience. Having a bankruptcy attorney guide you through the process can go a long way in relieving some of the pressure and anxiety inherent in the process and in restoring your peace of mind. Hines Law Offices is full-service bankruptcy firm that handles all types of debt relief matters to the residents of Massachusetts. With 20 years’ experience and knowledge in personal bankruptcy cases, we are committed to safeguard your interests and help gain financial control of your future. Our bankruptcy attorneys specialize in Chapter 7 and Chapter 13 cases as well as help implement a financial rebuilding plan. Hines Law will provide the right solution to your case. Call today for a Free Consultation! ____________________________ 1 Bankruptcy, www.uscourts.gov Link: https://www.uscourts.gov/services-forms/bankruptcy The post Filing for Bankruptcy, Do You Really Need a Lawyer? | MA Bankruptcy Firm appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM Filing for Bankruptcy, Do You Really Need a Lawyer? | MA Bankruptcy Firm - Bankruptcy Lawyers Serving Framingham, MA and Beyond

What is Credit Counseling and Do I Need It for Bankruptcy? | MA We get a lot of counseling these days. There’s individual therapy, group therapy, organizations for like-minded people, couples’ counseling, you may be surprised to find out there is even counseling for your finances. Your relationship with your finances is important and can be just as linked to your overall mental and physical health as anything else in your life that causes you stress. Credit counseling exists as a way to tackle that stress like anything else: tackling the root of a problem. However, if you are filing for personal bankruptcy, credit counseling is a requirement. Part of the bankruptcy process includes credit counseling, however, anyone can benefit from being advised on the best ways to handle their money and ensure thy stay on budget. This isn’t counseling to make sure you invest right, it’s to make sure your day-to-day relationship with your finances remains healthy and manageable. Below are some facts about credit counseling and how it can assist you to have a more relaxed and stress-free lifestyle. What Is Credit Counseling? Credit counseling is a way to help you understand your money and your debts. It can assist in budgeting and management therein as well as offer workshops on how to best manage your money without a budget. Typically, credit counselors are certified in consumer credit, money management, and budgeting and offer a variety of tools to make money management and adhering to a budget as simple and easy as possible for you. How Do I Find a Credit Counselor? Plenty of organizations exist to help you with your credit and budget needs. One place to start looking is the Financial Counseling Association of America or the National Foundation of Credit Counseling, both of which can point you in the direction of certified credit counselors. If you are filing for bankruptcy your bankruptcy attorney will have recommendations. You can also speak to your current financial advisor to see if there are any referrals you can get for a credit counselor. What Questions Should I Ask My Credit Counselor? First, you’ll want to make sure your counselor is certified if you haven’t gone through an officially recognized agency. Make sure to find out what services they offer and exactly what type of counseling they do. Ask about educational materials or workshops and ask about past stories of success they may have had with previous clients. Related Questions What will credit counseling cost me? You’ll need to talk with your counselor about the exact fee and how they process payments, what you’ll need up front, and what the fee schedule is. Most credit counseling service are nonprofit and will be able to assist you with payment needs. Will this hurt my credit? Credit counseling will not hurt your credit score. It is possible for the score to take a hit as a result of some of the actions your counselor asks you to take, overall it will be a benefit. If you are overwhelmed in credit and personal debt, personal bankruptcy is an option you may want to consider. The Bankruptcy Attorneys at Hines Law Offices can help. We specialize in Chapter 7 and Chapter 13 Filings as well as aid our clients with supportive and compassionate advice when it is required most. Our Full-Service Legal Firm handles all types of personal debt relief matters and we have several locations throughout Massachusetts. Call us today for a Free Consult! The post What is Credit Counseling and Do I Need It for Bankruptcy? | MA appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM What is Credit Counseling and Do I Need It for Bankruptcy? | MA - Bankruptcy Lawyers Serving Framingham, MA and Beyond

Act Now if You Might Be Facing Foreclosure – MA Bankruptcy Act Now if You Might Be Facing Foreclosure and Bankruptcy in the Future The possibility of losing a home is traumatic, especially in the midst of all the turmoil of a pandemic. Often people facing foreclosure don’t seek help or they delay getting help, limiting their options for resolving the situation. This is especially true right now as the Federal Housing Finance Agency (FHFA) has extended its ban on foreclosures and evictions until at least August 31.1 The FHFA oversees the provision of more than $6.4 trillion in aggregate funding for U.S. mortgage markets and financial institutions including Fannie Mae and Freddie Mac loans. When the federally-backed mortgage foreclosure ban is eventually lifted, there will likely be a surge in foreclosure activity, so now is the best time to get expert advice on your individual options if you are facing foreclosure in the future. A bankruptcy lawyer can provide you with options based on your situation. The lawyer can help you navigate the foreclosure process and may even be able to devise a plan that may make foreclosure unnecessary. A consultation with a lawyer not only helps you understand what to do and how foreclosure works, but the lawyer can also explain your legal rights and responsibilities. Lending institutions typically begin foreclosure proceedings after a homeowner has missed three to four payments.2 Then they must follow state foreclosure laws before selling a home at auction. This process can take from six months to more than a year depending on state laws and other factors, including whether the borrower and lender are in negotiations to stop the foreclosure.3 Those negotiations can result in forbearance, a temporary postponement of mortgage payments. Other options that a homeowner has include a short sale and a deed in lieu of foreclosure. A short sale occurs when the lender agrees to a sale of a home and will accept less than the amount owed on the debt. A deed in lieu of foreclosure is an option in which the homeowner conveys all interest in a property to the lender through a special deed instrument. A deed in lieu of foreclosure results in less harm to the borrower’s credit than an actual foreclosure action. A bankruptcy lawyer can also advise you on whether you should file for bankruptcy before or after your foreclosure. Filing for Chapter 7 bankruptcy has different implications for a homeowner than filing for Chapter 13 bankruptcy protection and it is important to understand each type of bankruptcy and how they affect foreclosures. Once you file for either bankruptcy protection an order for relief is issued by the court which gives you an “automatic stay” directing your creditors to cease their collection activities immediately.4 This will legally postpone a foreclosure sale for about three to four months if you file for Chapter 7 protection. Chapter 13 protection can help you keep your home, as it lets you repay late unpaid payments over the length of a Chapter 13 repayment plan, which is about five years long in most cases. Second and third mortgages may not have to be paid back at all under Chapter 13 bankruptcy protection depending on whether they are deemed as unsecured debt. The foreclosure and bankruptcy processes are difficult to navigate and a mistake, such as moving out of your home when you can stay there for free during the foreclosure, can cost you money, the ability to qualify for assistance, and undue harm to your future borrowing ability. Help is available, but it does take action on the homeowner’s part. The sooner you contact a bankruptcy professional for help, the more options you will have. Hines Law is a full-service bankruptcy firm that has been helping residents throughout Massachusetts with debt relief for 20 years. If you are facing foreclosure, bankruptcy may be the best way to save your home. We specialize in Chapter 7 and Chapter 13 bankruptcy and help you restructure your financial future. Our experienced bankruptcy attorneys can help you navigate through this overwhelming and difficult time. Call Hines Law today for a Free Case Evaluation! The post Act Now if You Might Be Facing Foreclosure – MA Bankruptcy appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM Act Now if You Might Be Facing Foreclosure - MA Bankruptcy - Bankruptcy Lawyers Serving Framingham, MA and Beyond

The CARES Act, Your Retirement Savings and Bankruptcy – MA The CARES Act, Your Retirement Savings and Bankruptcy: What You Need to Know Early in July, estimates of the number of unemployed Americans, ranged from 18 million to 33 million depending on what figures were examined.1 Regardless of which number you choose, it’s clear that a lot of American families are suffering economically due to the pandemic. Even more concerning is that the financial situation of many Americans is projected to worsen at the end of July as the $600 extra per week in unemployment payments authorized as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act will end. There is little hope that that $600 will be renewed if another round of stimulus aid is approved. If you are struggling to pay bills and have retirement savings the CARES Act also had provisions to ease the burden of early withdrawals and loans, but it is important to fully understand the drawbacks in terms of your future financial security, including implications if you ultimately have to file for bankruptcy protection. Retirement savings have been hard to access in the past in order to make it difficult for savers to get money that was intended to be used in the later years of their lives. The CARES Act removed many of the barriers to accessing retirement savings. Prior to the Act, if you were under 59.5 years of age and wanted to withdraw funds from your 401(k) or 403(b) workplace retirement plan the government would automatically withhold, as income tax, 20 percent of the money you withdrew. They would also impose a 10 percent penalty for early withdrawal. The CARES Act eliminated the 10 percent early withdrawal penalty and the automatic 20 percent withholding. You will still have to claim the withdrawal as income but instead of paying the taxes on the whole amount in the year it is withdrawn, the tax burden can be spread over three years.2 To take advantage of the CARES Act provisions you must be impacted by COVID-19 in one of several ways. For example, if you, your spouse or a dependent has been diagnosed with the coronavirus; if you’ve experienced adverse financial consequences because of being quarantined, furloughed, laid off or because you’ve had your work hours reduced; you can’t work because of lack of child care; or you had to close or reduce the hours of your business as a result of the virus. The qualifications list, and any updates, are available on the Internal Revenue Service (IRS) website.3 The CARES Act also makes it possible, if your retirement plan permits it, to withdraw or get a loan from your retirement savings of as much as $100,000. In the past you could only borrow or withdraw up to 50 percent of your vested account balance or $50,000, whichever was less. If you have a current loan on your retirement savings, repayment of the loan may be delayed under the CARES Act if your employer’s plan allows it for up to one year, however, payments will later be adjusted to reflect the delay and any interest accrued during the delay. Before you take a withdrawal or loan from your retirement savings to pay off your creditors or buy needed items, it’s important to have a general understanding of what will happen in the event that you have to file for bankruptcy protection. Retirement accounts that are qualified under the Employee Retirement Income Security Act (ERISA) are generally protected from your creditors during bankruptcy, but items you bought with retirement plan loans or withdrawals, prior to filing for bankruptcy protection, are not protected.4 The bottom line is that bankruptcy is a complicated situation based on an individual’s situation. It’s a wise move to consult with a bankruptcy attorney prior to taking a loan or distribution from a retirement account when you believe that your financial situation is such that you may have to file for bankruptcy at some point in the near future. If you file for bankruptcy your qualified ERISA retirement money can be protected for your use in retirement. If you are overwhelmed with debt and losing control of your finances, personal bankruptcy may be an option for you. Hines Law is a full-service bankruptcy firm specializing in Chapter 7 and Chapter 13 filings. With 20 years’ experience and knowledge, the bankruptcy lawyers at our firm will guide you every step of the way no matter what specific issues you may be facing. Call us today for a Free Case Evaluation! 1 Jobless Claims Tell Us 33 Million People Are Unemployed, but Many Doubt it’s That Bad, by Jeffry Bartash, 7/9/2020 Link: https://www.marketwatch.com/story/jobless-claims-tell-us-30-million-people-are-unemployed-but-many-doubt-its-that-bad-2020-07-08 2 CARES Act Liberalizes 401(k) Withdrawals, www.forbes.com, by Frank Armstrong III, 4/20/2020 Link: https://www.forbes.com/sites/frankarmstrong/2020/04/20/cares-act-liberalizes-401k-withdrawals/#275c9eb3691c 3 Coronavirus-related relief for retirement plans and IRAs questions and answers Link: https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers 4 Is My 401k Account Exempt or at Risk in Bankruptcy? www.alllaw.com, by Cara O’Neill Link: https://www.alllaw.com/articles/nolo/bankruptcy/401k-account-exempt.html The post The CARES Act, Your Retirement Savings and Bankruptcy – MA appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM The CARES Act, Your Retirement Savings and Bankruptcy - MA - Bankruptcy Lawyers Serving Framingham, MA and Beyond

Collections 101: What Debt Collectors Can and Can’t Do – MA Bankruptcy Due to unemployment, medical bills, small business closures and other factors, many Americans aren’t able to pay their bills on time during this pandemic, perhaps for the first time in their lives. Within weeks or months, those bills may be turned over to either in-house or outside collection agencies and it is important for consumers to understand their rights when it comes to collections. Because debt collectors have had a history of harassing debtors, the Fair Debt Collection Practices Act (FDCPA), was passed in September of 1977.1 This act regulates the actions and behaviors of third-party debt collectors, outlining specific practices that are not allowed by debt collectors.2 It is important to understand that not all debt collectors are covered by this act. There are two types of debt collectors. The first is an in-house collector. Many companies will first try to collect a debt that is only a few weeks or months delinquent using their own personnel. These in-house debt collectors are not subject to the FDCPA.3 If they can’t collect on the debt in-house, companies often hire collection agencies to collect debts on their behalf. These collection agencies ARE subject to the FDCPA. Most in-house debt collectors will begin with a reminder by mail or through a phone call. It is best to work with the creditor early on to establish a payment plan if you are able to pay a portion of the amount due. If a debt is 30 to 60 days past due, your lack of payment can be reported to any or all of the three major credit bureaus and this can harm your ability to secure a loan, open a credit card, rent a home or apartment, or even secure employment for up to seven years.4 Once a debt is turned over to a collection agency, employees of that agency must abide by the rules of the FDCPA. If you are contacted by a collection agency, never provide personal or financial information. Always contact the company where you incurred the debt and verify that they have turned your account over to a collection agency and have them disclose the name of the agency. Scams are common in debt collections so you should never pay a collection agency until you have verified that they legitimately are authorized to collect on the debt. The FDCPA regulations are extensive but the following are answers to some of the most common questions regarding what debt collectors are and are not allowed to do. • Debt collectors can only call between 8:00 a.m. and 9:00 p.m. They can’t call you in rapid succession. If you tell the collector not to call you again and follow up with a written letter stating such, they are legally not allowed to call you, but they can continue using other means, such as the mail, to collect the debt. They are not allowed to threaten you or use obscene language. • Debt collectors can’t contact your employer or family and friends about your debt or in any way publicly shame you about the debt. They can only talk with you, your spouse or your attorney about your debt. • Debt collectors can’t threaten that you will be put in jail or that they will make your debt situation public. They also can’t garnish your wages or take your personal property in lieu of the debt unless they sue you and obtain a court judgement to do so. • Debt collectors must be honest about who employs them. They can’t, for example, say they work for the police or a government agency if they are not employed in that manner. • Debt collectors can’t charge you additional fees, penalties or interest that was not in the original contract you entered into with the creditor. If a debt collector breaks any of the FDCPA rules, you can report them to your state Attorney General and the Federal Trade Commission. Be sure to keep evidence of each incident so you have a record to provide to the authorities. In response to the hardships of the COVID-19 pandemic additional consumer protections have been put in place. More information on these protections can be found online at the National Consumers Law Center website.5 If you are faced with harassment due to ongoing, overwhelming debt, personal bankruptcy may be an option. The bankruptcy attorneys at Hines Law have been helping residents throughout Massachusetts with debt relief options and protection so that they can find the right solution to their financial situation. We specialize in Chapter 7 and Chapter 13 filings and can help you get control of your finances and secure a bright financial future. Call us today for a Free case evaluation! ____________________________ 1 Fair Debt Collection Practices Act Link: https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text 2 What Debt Collectors Can and Cannot Do by Angie Mohr, www.investopedia.com, 3/15/2012 Link: https://www.investopedia.com/financial-edge/0312/what-debt-collectors-can-and-cannot-do.aspx 3 5 Things Debt Collectors Are Forbidden to Do by Amy Fontinelle, www.investopedia.com, 2/8/2020 Link: https://www.investopedia.com/articles/personal-finance/121614/5-things-debt-collectors-are-forbidden-do.asp 4 Debt Collection: Know Your Rights by Jean Folger, www.investopedia.com, 5/26/2020 Link: https://www.investopedia.com/financial-edge/0210/debt-collection-know-your-rights.aspx 5 Major Consumer Protections Announced in Response to COVID-19, National Consumer Law Center, 5/20/2020 The post Collections 101: What Debt Collectors Can and Can’t Do – MA Bankruptcy appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM Collections 101: What Debt Collectors Can and Can't Do - MA Bankruptcy - Bankruptcy Lawyers Serving Framingham, MA and Beyond

Bankruptcy Questions Answered – MA Bankruptcy is a scary word for a lot of people. It can mean the end of financial security or the loss of possessions. It can feel like a lack of control or a failure. But bankruptcy is a way to save your financials and get on the right path to restarting with a blank canvas and a much less stressful financial situation. Knowing that doesn’t make it completely un-scary, but it can help you understand that bankruptcy is there to help you. Many people have the same questions when they first talk to a bankruptcy attorney. What does bankruptcy actually mean? Which Chapter can you file for? What process can you expect to go through? What information is required of you? A personal bankruptcy attorney can answer all these questions but you can also go in with an expectation. Below are some common questions about bankruptcy, answered for you in general terms ahead of your meetings to start the process. What is Bankruptcy? Bankruptcy may, in your mind, be synonymous with “broke” but that’s not what it means at all. It is a federally mandated process to help you pay off debts and creditors when your assets are running lower than the money you owe. You need to be certain financial straits to qualify, but it doesn’t mean you have no money, but it means you quickly will have no assets as you owe more than you have available. What Chapters Can I File For? Different bankruptcy chapters are designed for different entities and situations. Chapter 7 bankruptcy is the Chapter designated for individuals (as well as some corporations) to file for. This process wipes out debt through a designated repayment plan through liquidation, overseen by a bankruptcy lawyer. You will entrust your property and assets to the court as a form of liquidation towards paying off your debt. Chapter 13 bankruptcy is when your debt is reorganized making it possible to keep your assets while paying back the debt you owe on a repayment plan. This works well for people with a consistent income. What Documents/Information Do I Need to Provide? There’s a number of things you need to have ready to share when you first meet with your lawyer. Have an exhaustive list of creditors to whom you owe funds, a copy of your most up-to-date pay stub as well as information on your yearly gross earnings for the past two years, any financing information you have on your cars, information on wages being garnished, information on student loans and tax obligations, and your marriage status and potential spouse’s financial information. Related Questions Does filing for bankruptcy stop creditor calls? When you file for bankruptcy, you’re awarded an automatic stay. This prevents creditors from contacting you for funds unless the court instructs them otherwise. And, once you have an attorney any creditor calls will go to them rather than you. This goes into effect almost immediately. Will this affect my job? Legally your employer cannot fire you for filing for bankruptcy. While bankruptcy petitions are public documents, your employer will not be informed unless they are one of your creditors. You also will not be punished with any jail time for not paying back your debts unless they are owed to the IRS depending on the nature of the debt. If debt is making it difficult to pay your bills, talk to a bankruptcy lawyer to learn more and prepare to file for bankruptcy. Hines Law Offices is full-service bankruptcy firm that handles all types of debt relief matters to the residents of Massachusetts. With over 20 years’ experience and knowledge in personal bankruptcy cases, we are committed to safeguard your interests and help gain financial control of your future. Our bankruptcy attorneys specialize in Chapter 7 and Chapter 13 cases and will provide the right solution to your case. Call today for a Free Consultation! The post Bankruptcy Questions Answered – MA appeared first on Bankruptcy Lawyers Serving Framingham, MA and Beyond. MASSBANKRUPTCYPROTECTION.COM Bankruptcy Questions Answered - MA - Bankruptcy Lawyers Serving Framingham, MA and Beyond