Evans & Evans, P.C.

There Was a Murder In My House - Do I need to Tell the Buyer?

andrew@evansevanslaw.com (Andrew Evans) — Sun, 07 Aug 2022 23:00:58 GMT

And what about the Ghost in the Basement? The Bottom Line is Just Don't Lie.

What happens if you become aware that a murder was committed in your home 30 years before you bought it? You have been made aware of this unpleasant fact not by the nice couple who sold you the house 5 years ago, but by a helpful neighbor down the street who wanted to be sure you were aware of it just as you are pounding the "For Sale" sign into the ground.

Your first call is to your real estate lawyer. Your first question is if you can sue your Seller. Your second question is whether you, who are now selling, have an affirmative duty to disclose this fact to your Buyer or prospective Buyers. Under Massachusetts law, with some caveats, the answer to both questions is generally "No."

Under Massachusetts law, neither a seller nor a broker is liable for failing to affirmatively disclose that the property being sold has been "psychologically impacted" (I am not sure how an inanimate object can be "psychologically impacted", but leave it to you to call your representative to complain about the tortured grammar).

Massachusetts General Laws Chapter 93, Section 114, provides in part as follows:

"The fact or suspicion that real property may be or is psychologically impacted shall not be deemed to be a material fact required to be disclosed in a real estate transaction. ''Psychologically impacted'' shall mean an impact being the result of facts or suspicions including, but not limited to, the following:

(a) that an occupant of real property is now or has been suspected to be infected with the Human Immunodeficiency Virus or with Acquired Immune Deficiency Syndrome or any other disease which reasonable medical evidence suggests to be highly unlikely to be transmitted through the occupying of a dwelling;

(b) that the real property was the site of a felony, suicide or homicide; and

No cause of action shall arise or be maintained against a seller or lessor of real property or a real estate broker or salesman, by statute or at common law, for failure to disclose to a buyer or tenant that the real property is or was psychologically impacted.

Notwithstanding the foregoing, the provisions of this section shall not authorize a seller, lessor or real estate broker or salesman to make a misrepresentation of fact or false statement. "

So while a Massachusetts Seller may not be required to affirmatively disclose a past home invasion, suicide or homicide, the statute does not shield a Seller who misrepresents facts to a Buyer in response to an inquiry on those topics by the Buyer.

You will note that the statute applies not only to mundane crimes, but also to hauntings and other paranormal activity.

If you are a Buyer and are concerned about these occurrences in your future home, you would be well served to ask the question - and attempt obtain a representation in the Purchase and Sale Agreement from the Seller that survives the delivery of the deed.

New Law increases Debt Limits For Chapter 13 and Subchapter 5 Bankruptcy

Sun, 07 Aug 2022 13:58:02 GMT

More small businesses and consumers can benefit from reorganizations

As the result of a new law passed by Congress in June of 2022, more small businesses and consumers will be able to consider the benefits of reorganizing under Chapter 13 or Subchapter V of Chapter 11 ("Subchapter 5").

The most important provisions of the new law are increases in the debt limits for debtors under chapter 13 and Subchapter 5 - increases that will continue for at least two years.

The new law provides that the debt limit for debtors to qualify under Subchapter 5 is once again $7,500,000. (When Subchapter 5 was first enacted, the debt limit was set at $2,725,625; this new law reinstates the higher limit established under the CARES Act) . The Act "sunsets" in two years on June 21, 2024.

Second, the Act increases the debt limit for filing chapter 13 bankruptcy cases. Previously, a debtor needed to have under $465,275 in noncontingent, liquidated unsecured debt and under $1,395,875 in noncontingent, liquidated secured debt to file under chapter 13. The Act combines and increases the unsecured and secured limits into one figure. Now, the aggregate debt limit for noncontingent, liquidated debt (both secured and unsecured) is $2,750,000. This increased debt limit also sunsets on June 21, 2024, at which time the original debt limits are set to be reimposed.

If you have questions about reorganizing your small business or consumer debts under either Subchapter 5 or Chapter 13, please call the Bankruptcy attorneys at Evans & Evans, P.C. at (978) 548-5174, or text us at (978) 471-4178.

The Time Is Now To Protect Your Assets

Tue, 21 Sep 2021 13:46:51 GMT

IT’S NEVER TOO EARLY TO PROTECT YOUR ASSETS

Lawsuits happen.

Whether it’s a business dispute, divorce, car accident , or creditor collection claim, lawsuits can arise unexpectedly from a variety of sources.

Or you or a close family member might be facing the prospect of devastating nursing home costs .

And once these situations arise, it can be too late to adopt an effective asset protection plan.

Unfortunately, many individuals and married couples give little thought to adopting an asset protection plan when “the coast is clear” from these threats, which is exactly when such a plan is most effective.

These plans are designed to protect the property and savings you have worked your entire lifetime to accumulate from claims which may arise years from now.

What is Asset Protection Planning?

In short, asset protection planning involves minimizing the risk that your assets will be vulnerable to the future claims of creditors, spouses, nursing homes and others. The goal of such planning is to discourage and minimize the damage from lawsuits, divorce and the cost of long term care (nursing homes), and to preserve those assets during your lifetime and for your family or other intended beneficiaries after your death. It is important to remember, however, that such planning cannot be used to engage in fraud or conceal assets from creditors.

Why are my Assets at Risk?

Here are some examples of circumstances that can put your assets at risk:

· Lawsuits resulting from business or investment failures and activities, or from injuries to guests at your home, business, rental or vacation property;

· Lawsuits relating to automobile accidents caused by you resulting in serious injury or death;

· Future creditor claims including unanticipated medical bills due to illness or injury;

· Failing to consider the possibility and effect of divorce ;

· Improper tax planning;

· Failure to plan for long term care (nursing home) costs; and

· Inadequate insurance coverage.

Are my Assets at Risk after my Death?

Your assets and your financial legacy to your loved ones may remain at risk after your death, due to their own financial circumstances, including:

· Creditor lawsuits and credit card debt

· Divorce

· A surviving spouse remarrying and leaving your assets to a new spouse, rather than to your children

· Business failures

· Reckless spending

Who needs an Asset Protection Plan?

You should consider developing an asset protection plan if you are concerned about:

· Protecting, to the extent ethically and legally possible, your assets (including your home, retirement savings and investments) from your own future creditors and those of your family;

· Protecting your business or investment properties;

· Protecting your personal assets if your business or professional practice gets sued;

· Avoiding devastating Nursing Home Costs in the future;

· Protect your assets in the event your surviving spouse remarries.

Get an Asset Protection Check-Up Now.

Here are a few of the topics you should discuss with your Asset Protection Attorney:

1. Adequate Insurance.

Although it won’t cover every potential risk, Insurance is often your first line of defense. You should review your existing insurance coverage with your agent, including, as applicable, homeowners, auto, “umbrella” coverage, business risk, professional malpractice, directors and officers’ liability, health, disability, life and long term care. Because insurance coverage is limited to the amount of the policy and often excludes many risks, it is usually not advisable to rely on insurance exclusively in lieu of a comprehensive asset protection plan. Asset protection planning should not be a substitute for liability and professional insurance, but rather should supplement insurance.

2. Review the Structure and Operation of your Business and Real Estate Investments.

The use of business entities such as corporations, LLCs (limited liability companies), limited partnerships and limited liability partnerships is a common asset protection planning technique. The business entity should be structured (1) to avoid exposing the business owner personally to the creditors of the business, and (2) to avoid exposing the assets of the business to the claims of an owner’s personal creditors which are unrelated to the business.

These business entities should be a vehicle for the operation of your business activities, and not used as a personal savings account. Their effectiveness in providing asset protection can be compromised by mixing business transactions with personal transactions. It is also important to observe certain “formalities”, such as keeping separate books and records, having a separate business bank account, and signing legal documents in the proper manner.

3. Consider the Use of Trusts for Certain Personal Assets.

Part of your asset protection planning strategy may involve the creation and funding of trusts, including irrevocable and/or revocable trusts. In certain circumstances, it may also be appropriate to consider a Domestic Asset Protection Trust established in a jurisdiction other than Massachusetts or an Offshore Trust. These considerations must obviously be made on a case by case basis and only as part of a comprehensive asset protection plan.

An irrevocable trust is one you cannot amend or revoke after you create it. The primary benefit of this kind of trust is that it may, if properly drafted and funded for a certain period of time in advance of any claim arising, help protect your assets from creditors. If you want to protect your assets from the costs of a nursing home, you will have to create an irrevocable trust.

A so-called living (revocable) trust is a common estate planning tool for transferring assets at death to children and other loved ones. One of the primary reasons trusts are used is to avoid the necessity of having assets tied up in Probate Court (a common misconception is that a Will avoids probate – it does not). Another reason might be to minimize the amount of estate taxes owed upon death, although under current tax laws, estate tax is reserved for the very wealthy.

It is important to note that a revocable living trust typically does not protect your assets from your own creditors; a properly drafted and funded revocable living trust can, however, protect your assets from creditors (including spouses) of your children or other beneficiaries.

4. Start Planning Before a Claim Arises

Many things you can do will effectively provide asset protection before a claim or liability arises, but few things will afterwards. That’s because what you do after a claim arises could be undone by “fraudulent transfer” law. Moreover, the point at which a claim arises is earlier than you might think—it is, for example, usually much earlier than when a demand letter or a process server shows up at the door.

5. Coordinate your Asset Protection Planning with your Tax & Estate Planning

Often asset protection planning and estate planning work together, but sometimes they are at odds and what might be a good idea for estate planning might not help in terms of asset protection. For example, the making of gifts (to children and other prospective heirs) is common in estate planning but can result in a fraudulent transfer claim from an asset planning perspective.

6. Bankruptcy Planning – Even if You Never Need It

Even if you never have to file bankruptcy , it’s smart to plan now, in conjunction with your estate, tax and business planning, before any potential claims against you arise. Here especially advance planning is necessary if you plan to preserve your assets. Bankruptcy is a complex process, full of potential minefields. Without advance planning and execution of an asset protection plan, long before bankruptcy is even a consideration, state homestead exemptions can be substantially limited, and other new provisions in the bankruptcy code and new bankruptcy case law can make parts of asset protection plans very difficult to justify in bankruptcy. Most importantly, you can’t consider filing bankruptcy without making a full and complete disclosure about assets and transfers. The failure to make a full disclosure will usually lead to a denial of discharge, and the failure to make a truthful disclosure can amount to charges of perjury and bankruptcy fraud.

7. Start Simple and Take Advantage of Applicable Law

An Asset Protection Review will focus first on the protections afforded you by the Commonwealth of Massachusetts or federal law. These would include a Declaration of Homestea d for your primary residence and a review of any retirement plans to ensure they are exempt from the claims of creditors under Massachusetts law. You and your Asset Protection Attorney should then review your personal property to ensure it is held in a manner which takes full advantage of the Massachusetts exemption statutes.

No matter what your needs are, each protection plan is modified to fit according to protect your assets. Our comprehensive plans are developed by experienced attorneys specifically to preserve and protect your assets.

Contact Evans & Evans, P.C. at (978) 548-5174 for a free, no-obligation review of your assets and existing estate plan.

Massachusetts Bankruptcy Attorney

Sat, 18 Apr 2020 14:18:00 GMT

IF YOU FIND YOURSELF IN A FINANCIAL HOLE, THE FIRST THING TO DO IS STOP DIGGING – AND THEN CALL AN EXPERIENCED MASSACHUSETTS BANKRUPTCY ATTORNEY

If you are a Massachusetts Bankruptcy filer, or just thinking about filing bankruptcy to deal with your mortgage, credit card, tax, student loan or other debts. The first and most important thing to do is to speak with a qualified Massachusetts Bankruptcy Attorney to avoid making common (and not so common) mistakes before filing.

Bankruptcy has its own set of rules, and they can be unforgiving. If you make these mistakes – and many others – before you file, you can jeopardize the considerable benefits bankruptcy can provide.

There are some cases where other factors come into play. You may believe you need, for example, to use a credit card to buy groceries or want pay a specific creditor prior to filing. In all cases where you are considering filing bankruptcy in Massachusetts it is important to speak to a Massachusetts bankruptcy attorney so you can understand the consequences of those actions, discuss alternatives, and make an informed decision.

With that said, let’s take a look at a few of the more common mistakes debtors make and “traps for the unwary” when it comes to filing bankruptcy. There are lots more, which is why it is important to always speak to a qualified Massachusetts bankruptcy attorney before you alter your financial picture. Learn more about our firm here .

Giving away Money or Property prior to Bankruptcy.

Some debtors are afraid they will lose their hard-earned assets (such as a house, car or savings account) if they file bankruptcy. In fact, in many instances these assets are exempt (protected) in your Massachusetts bankruptcy case (as with all exemptions, states other than Massachusetts will have different exemption laws; debtors in other states should check with a bankruptcy attorney in that state).

For example, if a debtor transfers her house to her children before filing bankruptcy in an attempt to “protect” it from a bankruptcy trustee, the debtor will likely instead lose her Massachusetts homestead exemption and forfeit the house. The Debtor may also lose the ability to discharge debts to all of her creditors. Before you think about transferring any property into someone else’s name, or into a trust, speak to a qualified Massachusetts bankruptcy attorney.

Using your 401(k), IRA or other Retirement Savings to pay off Debts.

You should speak with a Massachusetts bankruptcy attorney before using retirement savings to pay off debts. These assets are often partially or fully exempt in Massachusetts bankruptcy cases. Using retirement savings to pay your debts can drastically affect your financial future and have significant tax consequences. It is better to speak with an attorney who can evaluate your entire financial picture before you deplete your retirement savings.

Paying Debts to Relatives or Preferred Creditors.

Bankruptcy is designed to provide a level playing field for all creditors who have the same types of claims. For example, let’s say that two years ago your parents loaned you $10,000.00 and you also have a Visa debt for $5,000.00 and a debt to your local Mechanic for $5,000.00. Neither your parents nor Visa nor the mechanic have a lien on any of your property. In this case, they are all considered “unsecured” creditors. If you run into financial problems and are forced to file bankruptcy, you should resist any impulse to pay off mom and dad, or the mechanic, until you speak to a Massachusetts bankruptcy attorney.

This is because certain payments may be subject to “clawback” by a bankruptcy trustee. They may also jeopardize or delay your discharge. In the example above, if you repay your parents within one year before filing, a bankruptcy trustee may look to recover (and possibly sue) your parents to recover that payment. If the Bankruptcy Trustee recovered the money from mom and dad, it would go into a pot to be equally distributed among all creditors (including Visa). Likewise, if you pay the mechanic (who is not a relative or close business associate) within 90 days prior to filing, the Bankruptcy Trustee could look to recover amounts paid to the mechanic.

Using Your Credit Cards.

If you are preparing to file bankruptcy you should not be incurring any further charges on your credit cards (including cash advances). However, you can continue to use a debit card linked to your bank account to pay for your normal household expenses such as gas, groceries, etc.

CONTACT US TO DISCUSS YOUR OPTIONS BEFORE MAKING ONE OF THESE MISTAKES.

These are just three examples of literally dozens of traps for the unwary in the world of Bankruptcy. They exist in even “simple” bankruptcy cases (there is no such thing).

The Bottom Line: Before you take any action to change your financial picture, call or text us at (978) 548-5174. The initial consultation is free and we would be happy to discuss your options, including bankruptcy, protections available under the CARES Act in response to the Covid-19 pandemic, and asset protection .

Our office is conveniently located behind the North Shore Mall and we also meet Middlesex County clients in Woburn. Call or Text for details or visit our website at www.massdebtlaw.com.

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Can’t pay your mortgage or rent? Coronavirus help

Wed, 01 Apr 2020 16:00:00 GMT

Can’t pay your mortgage or rent? What Now?

You can’t pay your mortgage or rent. What now?

Coronavirus is right here in Peabody and the rest of the North Shore, now and for the forseeable future.

Many individuals and families are understandably worried about paying the rent or mortgage.

IF YOU ARE UNABLE TO PAY YOUR MORTGAGE OR RENT DUE TO CORONAVIRUS HARDSHIP

The global public health crisis is unprecedented. If you don’t already know someone who has been directly impacted by this outbreak, you almost certainly will in the coming weeks and months.

And the economic impact is just beginning to be felt by families and small businesses throughout the North Shore, Massachusetts and the country.

Many people and businesses affected by this catastrophe will ultimately be forced to file bankruptcy .

Many Peabody and North Shore individuals have lost their jobs, or seen their hours reduced.

Many are, or soon will be, forced to prioritize between paying for food, rent, mortgage, and medical expenses. But (some) help is on the way.

The CARES act, enacted into law on March 27, 2020, is a start, and offers some (but not nearly enough) protections to consumers.

FORECLOSURE SUSPENSIONS AND FORBEARANCE IF YOU CAN’T PAY YOUR MORTGAGE

The CARES act allows many homeowners with “federally backed mortgage loans” to request mortgage forbearance for up to 6 months. It also prohibits foreclosures for 60 days beginning on March 27, 2020.

HOW TO TELL IF MY LOAN IS COVERED BY THE CARES ACT

Your loan is covered by the CARES Act if it is “Federally Backed” by certain investors including Fannie Mae, Freddie Mac, the FHA, VA and RHS.

You can look up your mortgage by selecting the following links to see if either Fannie Mae or Freddie Mac own your mortgage:

https://ww3.freddiemac.com/loanlookup/

https://www.knowyouroptions.com/loanlookup#

To see if your mortgage is “backed” by another “covered” investor, and for additional links and information, see the National Consumer Law Center’s excellent resource on major consumer protections in response to Covid-19, here .

CAN I BE EVICTED IF I CAN’T PAY MY RENT?

The CARES Act and state of Massachusetts are also enacting protections for Tenants struggling to make their rent payments in light of the Coronavirus pandemic.

Landlords whose properties are considered “covered dwellings” may not file a court action for eviction or charge additional fees for nonpayment of rent for 120 days from March 27, 2020.

Your apartment is in a “covered dwelling” if the building is secured by a federally backed mortgage loan, or your landlord or participates in most federal housing programs.

In addition, the Massachusetts Housing Court (where almost all Essex County evictions are filed) has suspended all non-emergency proceedings through at least April 21, 2020. It is expected that date will be extended.

WHAT ABOUT MY CREDIT?

The CARES Act only partially (and unsatisfactorily) addressed the issue of credit reporting in the event you are late on your mortgage or rent payments.

The act provides some protections if you are eligible for and obtain forbearance on your mortgage as provided under the Act.

It is anticipated that Congress will address the issue of credit reporting in future legislation.

WHAT ABOUT MY ASSETS? SHOULD I TAKE A WITHDRAWAL FROM MY 401(k)?

Widespread declines in the stock market due to the fallout from Coronavirus has impacted many people’s savings and retirement accounts.

Asset protection planning is more important now than at any time in recent memory. Please call us at (978) 548-5174 if you have any questions about the preservation of your assets from potential claims of creditors.

Before you take a distribution from a qualified plan or IRA, it is a good idea to speak with a qualified financial advisor such as a CPA or financial planner.

CALL US FOR A FREE TELEPHONE CONSULTATION

If you have questions about your options in managing your debt, dealing with a crisis such as lawsuits or foreclosures, or are interested in learning more about whether bankruptcy is right for you, call us for a free telephone consultation at (978) 548-5174.

The post Can’t pay your mortgage or rent? Coronavirus help appeared first on Evans & Evans, P.C. .

Congress acts to help struggling families and businesses filing Bankruptcy

Fri, 27 Mar 2020 12:59:00 GMT

Congress has acted to help struggling North Shore and Greater Boston families and businesses filing – or thinking about – bankruptcy.

There are some important changes to the Bankruptcy Code contained in the Coronavirus relief package recently passed by the Senate. The bill is expected to passed by the House and signed into law shortly.

These changes will impact current and future debtors in Bankruptcy cases, including Peabody and North Shore families, individuals and businesses.

Changes for Individuals filing for Bankruptcy or involved in a current Bankruptcy Case:

Probably the most important and sensible change in the bill is to exclude Coronavirus relief from the definition of “income” in the Bankruptcy Code.

The amount of “disposable income” is important in determining eligibility for Chapter 7 bankruptcy.

The amount of disposable income also determines how much a debtor may have to pay to creditors in a Chapter 13 Bankruptcy.

This change should ensure that Peabody and North Shore individuals and families will not be penalized by receiving relief payments.

2. Ability to modify some Chapter 13 Plans:

The current maximum length of Chapter 13 Plans is 5 years.

However, the Coronavirus Relief bill allows for some current Chapter 13 plans to extend up to 7 years. This will allow debtors extra time to complete their plans. It may also allow Debtors to lower their Chapter 13 Plan payments.

Changes to Chapter 11 Bankruptcy For Small Businesses:

The bill also makes it easier for small businesses who are otherwise eligible for the new Subchapter 5 of Chapter 11.

Chapter 11 has often been the sole option for a business to reorganize under the Bankruptcy Code. However, Chapter 11 is often seen as expensive, time and labor intensive, and intrusive to small businesses.

Effective as of February 2020, small businesses can now file under Subchapter 5, which is designed to make it easier and less costly to access Chapter 11.

The Debt limit for Subchapter 5 was originally $2,725,625.00 However, under the new bill, that debt limit has increased to $7,500.000.00 for one year.

If you or your small business is struggling due to Coronavirus or for other reasons, please contact us by email, through our website, or by phone at (978) 548-5174.

Our office serves the entire North Shore, Middlesex County, and Greater Boston.

Our initial phone/virtual consultation is free.

The post Congress acts to help struggling families and businesses filing Bankruptcy appeared first on Evans & Evans, P.C. .

Coronavirus and Bankruptcy – Massdebtlaw

Wed, 25 Mar 2020 16:10:00 GMT

Is the Coronavirus Pandemic going to force me or my business to file Bankruptcy?

Coronavirus and Your Debt:

Unfortunately, many Peabody and North Shore families and businesses are wrestling with that question right now.

Hopefully you and your loved ones and friends are all (and will remain) healthy.

By now, you (or your employer or business) have adopted practices recommended by public health officials to protect you, your employees, customers and family.

On top of the public health catastrophe, Coronavirus is or will adversely impact your finances.

Millions of Americans already have, or are forecast to, lose their jobs.

Businesses of all sizes on the North Shore and throughout the country are being devastated by the economic fallout from the Coronavirus.

As the world seems to have come to a virtual standstill, it is a good time to plan for the impact of the Coronavirus on your pocketbook.

Here’s What You Can Do Now:

Call or email the Bankruptcy and Debt Relief Attorneys at Massdebtlaw for a free virtual/telephone consultation. We can help you begin to put together a debt management plan that’s right for your situation. This can include:

Government Help and Resources for Debt problems during Covid-19:

Thankfully, HUD has suspended foreclosures and evictions for many (but not all) single family homeowners with FHA-insured mortgages for the next 60 days amid the COVID-19 pandemic.

The Federal government is also rolling out a stimulus package which may provide some relief (including expanded unemployment compensation benefits).

For more information on Covid-19 Resources click here

Coronavirus and Long-Term Financial Effects on You or Your Business.

Government Stimulus plans may provide short term solutions designed to keep homeowners and wage-earners temporarily afloat. However, they may not provide a long term solution in all (or even most) cases.

We are still awaiting regulation or legislation about how delinquent payments due to Coronavirus are going to reported on your credit report.

We Can Help You Start Planning Now.

Like everything else, the key to minimizing the financial damage brought about by Coronavirus is planning.

Our Peabody and Greater Boston Debt Relief and Bankruptcy Attorneys offer a Free Phone Consultation and virtual meetings for clients. Call us now at (978) 548-5174.

We help families and businesses all over eastern Massachusetts, including the North Shore, Greater Boston and Middlesex County.

To begin your own debt management planning process, call or email us now to to arrange a free virtual or telephone consultation.

We look forward to working with you.

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Credit Card Debt On the Rise

Thu, 09 Jun 2016 12:31:00 GMT

More Americans will soon be looking for Credit Card Debt help.

Credit card debt held by the average American consumer is growing to unsustainable levels, leading some to speculate that consumer bankruptcy filings will soon be on the rise.

According to a recent report issued by CardHub, outstanding Credit Card Debt held by U.S. consumers is on the rise and is estimated to top a record $1 Trillion by the end of the year.

The report says that the traditional consumer paydown expected in the first quarter of this year was much weaker than expected, while consumer spending escalated rapidly. The report suggested that the levels of outstanding household credit card debt, reminiscent of 2007 levels, are unsustainable and could be a factor in leading to a recession in the overall U.S. economy.

This comes on top of an accumulation of some $71 Billion in credit card debt in 2015, a number CardHub called “astounding”.

Credit card debt problems affect families, individuals, senior citizens and, at an alarming rate, recent college graduates who may also be contending with massive student loan debt.

If you are concerned about your own financial situation, or have questions about debt relief, bankruptcy , responding to lawsuits, harassing bill collectors, foreclosure, tax debt, medical debt, student loan debt, or other issues, contact the attorneys at massdebtlaw.com for a free case evaluation.

According to the Massachusetts Secretary of State, the dangers of being overextended on credit card debt include the following among students:

Debt problems can lead to depression, which affects study habits, academic performance and retention rates.

People stressed about debt (particularly credit card debt) are more prone to heart attacks, insomnia and explosive emotions. Some studies suggest that those students with credit card balances in excess of $1000 drink more, smoke more, use more prescriptions for depression and have lower grade point averages than those who don’t carry credit card debt.

Debt can stick with students long after graduation. Debt ridden students interested in advanced degrees may not be able to secure graduate loans. Potential landlords, and some employers, routinely review credit histories.

Colleges and universities are the one group that makes money out of the credit card industry without bearing any responsibility for educating the students about the possible pitfalls and the devastating effect bad credit can have on their financial future. In return for lucrative fees, many colleges allow the banks and credit card companies to hawk their cards right on campus.

Many young adults have been forced by long-term financial problems to file for bankruptcy. In the years 1991-1999, there was a 50% increase in bankruptcy filings for people under 25.

Companies offer student “teaser” interest rates of 5 to 7 percent and quickly increase them sometimes as high as 20% or even more for those who miss payments or receive cash advances.

For the full article go to http://www.cardhub.com/edu/credit-card-debt-study/

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Chapter 13 bankruptcy saves client’s home in Andover, MA

Tue, 19 Apr 2016 17:57:00 GMT

Client’s Andover, MA home had been auctioned at foreclosure sale while clients were in the process of attempting to obtain a loan modification from their mortgage company. Client also had substantial credit card debt, tax debt and medical bills. We immediately filed a Chapter 13 bankruptcy case on behalf of the client and filed a lawsuit against the bank in the Bankruptcy Court, obtaining a temporary restraining order and injunction preventing the bank from selling the client’s home to a third party. We were then able to negotiate a repayment plan which permitted the client to retain the home while making manageable payments on the mortgage.

RESULT : Client regained ownership of home which had been auctioned at a foreclosure sale, entered into a plan which provided for manageable payments of client’s tax and mortgage debt, and eliminated thousands of dollars in credit card debt and medical bills.

The post Chapter 13 bankruptcy saves client’s home in Andover, MA appeared first on Evans & Evans, P.C. .

Chapter 13 to Chapter 7 Bankruptcy Provides Fresh Start

Tue, 19 Apr 2016 17:56:00 GMT

Client came to us two days before foreclosure auction on his home in Newburyport, MA. Client had fallen behind on mortgage and credit card payments after having been laid off 18 months earlier. Client had been unsuccessful in obtaining loan modification due to lack of income. We filed a chapter 13 bankruptcy on behalf of the client, which stopped the foreclosure sale and gave the client time to reorganize. The client was able to find new employment which permitted us to successfully obtain a loan modification on behalf of the client. We then converted the case to a Chapter 7 case , and eliminated thousands of dollars in credit card debt and unpaid medical bills.

RESULT : Client avoided imminent foreclosure, obtained loan modification resulting in extremely reasonable mortgage payments, eliminated thousands of dollars in credit card debt , and emerged from bankruptcy with a fresh financial start.

The post Chapter 13 to Chapter 7 Bankruptcy Provides Fresh Start appeared first on Evans & Evans, P.C. .

Business Debt Personal Liability Eliminated

Tue, 19 Apr 2016 17:56:00 GMT

Our client, a small business owner in Salem, MA, was the sole shareholder of a corporation. The corporation owed substantial trade debt as well as tax liabilities to the Massachusetts Department of Revenue for unpaid taxes for which the client had been determined to be individually responsible. The business, a restaurant, had only one significant remaining asset, a liquor license, which was about to be revoked by the City in which the restaurant was located. We filed a Chapter 7 Bankruptcy for the Corporation in order to allow the liquor license to be auctioned by the corporation’s Chapter 7 Trustee. This in turn generated funds which, by operation of the priority scheme of the Bankruptcy Code, were paid by the Trustee to the Massachusetts Department of Revenue ahead of the corporation’s other creditors. This payment in turn reduced the Client’s personal liability for these “trustee” taxes, which he was then able to manage in a subsequent personal Chapter 13 case filed by our office on his behalf.

RESULT : The Client was able to obtain a fresh start by eliminating all business debt personal liability, credit card debt and tax liabilities to the Massachusetts Department of Revenue by a combination of a Chapter 7 bankruptcy for his small business and an individual Chapter 13 bankruptcy filing.

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Protect Rights Under a Separation Agreement and Divorce Judgment

Tue, 19 Apr 2016 17:55:00 GMT

A divorced client came to us after her ex-spouse had filed bankruptcy to ensure that her rights under a Separation Agreement and Divorce Judgment were protected. The client’s spouse had filed bankruptcy seeking to discharge his obligations to his ex-wife. On behalf of our client, we objected to the ex-husband’s Chapter 13 Plan and filed a lawsuit against the husband in the Bankruptcy Court to ensure that the husband was required to comply with his obligations under the Divorce Judgment and Separation Agreement.

RESULT : We were able to obtain dismissal of the husband’s bankruptcy case and then assisted our client in enforcing the terms of her divorce judgment in the Probate and Family Court and filed a lawsuit against the husband in the Bankruptc

The post Protect Rights Under a Separation Agreement and Divorce Judgment appeared first on Evans & Evans, P.C. .

Preserve Retirement Funds and Remove Liens

Tue, 19 Apr 2016 17:55:00 GMT

Client came to us three months behind on first mortgage, with substantial credit card debt, and second and third mortgages (home equity lines of credit) which client was unable to pay. The client had also been sued by a credit card company and its debt collectors, resulting in a judgment lien on the client’s home. The second and third mortgages were completely “unsecured” in that the value of the client’s home was less than even the balance due on the first mortgage. The client had been considering withdrawing funds from the client’s 401(k) plan to pay off the credit card debt and catch up on the mortgages. After retaining us, we instead filed a Chapter 13 bankruptcy on behalf of the client, preserving the client’s retirement funds, and prepared a plan which allowed the client to catch up on the first mortgage with manageable payments over time, “stripped off” or removed the second and third mortgages, and eliminated a large proportion of credit card debt. We also filed a motion with the Court to remove the judgment lien.

RESULT : When the client has completed the Chapter 13 Plan, client will have made up all past due first mortgage payments, removed mortgages and liens other than first mortgage and discharged almost all credit card debt, obtaining a fresh start and greatly improving the client’s financial situation.

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Obtained Dismissal of the Debtor’s Bankruptcy Proceeding

Tue, 19 Apr 2016 17:54:00 GMT

Our client, a community bank, had been thwarted on numerous occasions by a commercial customer’s multiple abusive Chapter 11 bankruptcy filings which were designed to thwart the bank’s legitimate efforts to regain its collateral. On behalf of our client, we successfully objected to a continuation of the automatic stay and, after an evidentiary hearing, obtained a dismissal of the Debtor’s bankruptcy proceeding.

RESULT : Our client was permitted to proceed with the liquidation of its collateral in order to collect its debt against a commercial customer.

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Retiring Couple Obtains Discharge Through Chapter 7 Bankruptcy

Tue, 19 Apr 2016 17:53:00 GMT

Husband and Wife clients nearing retirement (with husband facing a chronic illness) came to us with $40,000.00 in credit card debt, personal loans and medical bills. The Client was struggling to maintain minimum payments on these bills but not making any progress in reducing principal. The Client was extremely concerned about retirement and hopeless about ever getting out from under his debt. After exploring non-bankruptcy debt settlement and consolidation options, we determined that in light to the Clients’ age and other factors including health issues, a Chapter 7 bankruptcy was the preferred solution.

RESULT : We filed a Chapter 7 bankruptcy on behalf of the client, and the client obtained a discharge, eliminating all of the client’s credit card and other debt while preserving all of the client’s assets and greatly reducing the stress that went along with what seemed to be a hopeless situation to the client.

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