Padden & Joyce, LLC
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Practice Areas

Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Our Attorneys provide legal advice and counsel in the area of Bankruptcy to clients throughout Massachusetts and Rhode Island. Bankruptcy law is complex. It is to your benefit to have an experienced attorney guide you through the bankruptcy process. You may file a bankruptcy petition under one of four chapters of the United States Bankruptcy Code. In practice, however, most of our clients file under Chapter 7 or Chapter 13. The following is a brief description of these two chapters.

Chapter 7 is designed for debtors with financial difficulties who do not have the ability to pay their existing debts. A trustee assigned to the debtor's case "takes possession" of all the debtor's property, which they may decide to liquidate and use the proceeds to pay the debtor's creditors. In most cases, however, the debtor can keep all of his or her assets by using allowed exemptions provided for by the Bankruptcy Code. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. There are, however, some debts that can't be discharged under the current law such as taxes, student loans, alimony, support payments and debts arising from a drunk driving accident.

Chapter 13 is designed for individuals with a regular income but who are temporarily unable to pay their debts. Chapter 13 debtors will pay a portion of their debts in installment payments usually over the course of three to five years. To be eligible you must file a payment plan with the Bankruptcy Court in which you outline how you intend to repay you creditors all or part of the money owed to them using your future earnings. The Court must approve the plan before it can take effect. Under Chapter 13 you may keep all of your property, as long as you continue to make payments under the plan. After completion of the plan your remaining debts are discharged.

If you would like to learn more about bankruptcy or schedule a consultation please contact our office directly.