Frequently Asked Questions
If I file bankruptcy and I live in Rhode Island or Massachusetts will I lose my home?
In most cases people can file bankruptcy and keep all of their property. In fact, Rhode Island and Massachusetts has a $500,000 Homestead law whereby if your home has $500,000 or less of net equity (current value of the home - mortgage balances) it is protected from being lost in the bankruptcy.
If I live in Rhode Island or Massachusetts and I file bankruptcy will I lose any of my assets?
In most cases, people file bankruptcy and keep all of their property including vehicles, real estate, household goods and furniture, jewelry and other assets.
If I am behind on my mortgage and facing foreclosure will a bankruptcy help me to keep my home?
Yes, a Chapter 13 will allow you to pay what you are behind on your mortgage, and also take care of your unsecured debt, for a monthly payment that you can afford over a 3 to 5 year period.
Can a business file for bankruptcy protection?
Yes, under Chapter 11 and now under the new Subchapter V of Chapter 11 businesses can stop collection procedures and court enforcement of debt collection orders.
If I wipe out my debt in bankruptcy is that taxable at the end of the year?
No, there is a specific provision in the Internal Revenue Code and the Bankruptcy Code that says that that is not a taxable transaction.
If I file bankruptcy will I have to go to court?
No, currently due to the pandemic our bankruptcy hearings are being conducted remotely. You may currently file for bankruptcy without the need to attend an in-court meeting.