There are several types of Debt Relief services. For example, filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy will stop any home foreclosure action by your lender under the automatic stay provision of the U.S. Bankruptcy Code. However, you will still have to catch up on your house payments if you want to keep your property. Your lender may ask permission from the bankruptcy court to proceed with home foreclosure if it can show that you are so far behind on your payments that you will be unable to bring your payments current.

Because Chapter 7 bankruptcy provides relief for other types of debt such as credit card bills, this bankruptcy option may enable you to catch up on your mortgage payments and keep your house. However, if you are far behind on your payments, filing Chapter 13 bankruptcy may be the best choice for you. Under a Chapter 13 debt repayment plan, you will have up to five years to bring your mortgage payments up to date.

If you have house payments automatically deducted from your checking account, those payments may stop as a result of your filing bankruptcy. Therefore, it’s important to keep an eye on your checking account. If you get behind on house payments after filing bankruptcy, your lender will have the right to make a motion to vacate the automatic stay and foreclose on your house.

Our lawyers recommend that you make house mortgage payments by money order or bank check for at least six months after your bankruptcy case, as these forms of payment can’t bounce. We also recommend that you send payments by certified or registered mail, return-receipt requested, so that you have proof of when the lender received it.

Like other forms of debt, back taxes can create a significant financial burden. Filing bankruptcy can be an effective way to obtain tax debt relief.  Attorney John Elloian can offer a free initial consultation to explain whether your Internal Revenue Service (IRS) or Massachusetts state tax debts can be discharged by filing bankruptcy.

Some tax debts can be discharged by filing bankruptcy, which means that you will not have to pay the taxes. If the taxes cannot be completely discharged, our lawyers may be able to provide relief by creating a debt payment plan that will allow you to repay the taxes at a lower interest rate than the IRS would otherwise charge. Filing bankruptcy can also stop a foreclosure action by the IRS to collect back taxes.

Worcester Massachusetts Bankruptcy Lawyers
One of the most common reasons for filing bankruptcy is to get rid of credit card debt.  Attorney John Elloian is a bankruptcy lawyer who offers a free initial consultation to explain how you can reduce or eliminate your credit card debt by filing bankruptcy.

There is a lot of misinformation being spread about the new bankruptcy laws. Many credit card companies will tell debtors that credit card bills can no longer be discharged. This is simply not true. Most people with significant credit card debt can still obtain relief by filing bankruptcy.

Filing Chapter 7 bankruptcy will allow you to discharge credit card debt. In other words, your credit card bills will be completely wiped out and you will not have to pay one cent to the credit card companies.

In a Chapter 13 bankruptcy, credit card debt is treated as unsecured debt, which means that you will have to pay a percentage of it. This percentage will be determined by how much you can afford to pay. Chapter 13 bankruptcy is a debt repayment plan that enables you to consolidate your unsecured debt and reduce your payments.

Filing bankruptcy also puts an immediate stop to home foreclosure, eviction, wage garnishment, repossessions and harassment by your creditors.

Attorney John Elloian is a bankruptcy attorney in Worcester Massachusetts, and can provide bankruptcy and debt relief services such as Chapter 7 and Chapter 13 bankruptcies, throughout Central Massachusetts, Worcester County, and Middlesex County including Shrewsbury, Auburn, Grafton, Westborough, Marlborough, Northborough, Southborough, Boylston, West Boylston, Holden, Leominster, Paxton, Sutton, Millbury, Upton, Oxford, Fitchburg and Northbridge.