Legal Question in Bankruptcy in Massachusetts

First off, you should not consider bankruptcy without an attorney. It is a complex area of the law that, necessarily, involves every other area of law. Generally, there are two types of bankruptcy, Chapter 7, or "liquidation" bankruptcy, and Chapter 13, or "plan" bankruptcy.

In a Chapter 7, your possessions and accounts (with certain exceptions) will, very generally speaking, be liquidated to pay your creditors. To the extent amount due is greater than amount possessed, you will pay that much less to your creditors than you owe. You may or may not qualify for this type of bankruptcy depending upon your income.

In a Chapter 13, you, your attorney, and your creditors, agree to a plan where creditors will get paid a given amount over time. It is only in a Chapter 13 that you may truly "save" your house - by paying off any mortgage arrearage through the Chapter 13 Plan.

If you would like to learn more about bankruptcy, you may contact my office. Please note: this response does not create an attorney client relationship, and is for general advice purposes only. From the date of your question, I note that it may be possible that a bankruptcy would not help your situation. There is no way for me to know.

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