Chapter 13 Bankruptcy in Massachusetts: A Complete Guide
While Chapter 7 bankruptcy can wipe out debts quickly, it’s not the right fit for everyone. For some Massachusetts residents, Chapter 13 bankruptcy provides a way to keep valuable property and repay debts over time in a structured, affordable plan.
As we head into the new year, Chapter 13 may be the better option if you want to get control of debt while protecting your home, car, or other assets.
What Is Chapter 13 Bankruptcy?
Chapter 13 is sometimes called a “wage earner’s plan.” Instead of eliminating debts immediately, you propose a repayment plan lasting 3–5 years. This lets you catch up on overdue mortgage payments, stop foreclosure, and reorganize debts into something manageable.
Chapter 7 vs. Chapter 13: What’s the Difference?
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Chapter 7: Eliminates most unsecured debts in a few months, but you must qualify by income and may risk some assets.
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Chapter 13: Involves a court-approved repayment plan. You keep your property while paying back part (or all) of your debts over time.
How the Repayment Plan Works
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Duration: 3–5 years
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Payments: Based on your disposable income, debts owed, and state-specific guidelines
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Trustee Oversight: Payments go to a bankruptcy trustee, who distributes them to creditors
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Missed Payments: Falling behind can cause dismissal or conversion to Chapter 7, so budgeting and guidance are critical.
Protections Chapter 13 offers include: automatic stay, which stops foreclosures, repossessions, wage garnishments, and creditor harassment; protection of your assets and debt relief.
Requirements & Considerations
To file Chapter 13, you need:
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Regular income to support the repayment plan
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Credit counseling before filing
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Commitment to stick with the plan for its duration
Disadvantages include the longer time frame, impact on credit, and the risk of dismissal if payments aren’t made.
Costs and Fees
Attorney fees and trustee fees are part of the repayment plan, making them easier to manage. Ravosa offers clear, upfront guidance so you understand the financial commitment before filing.
If you’re struggling with mortgage arrears, worried about losing your home, or simply need time to reorganize debt, Chapter 13 bankruptcy may be the right solution.