Kovacs Law Office
News letter
June 2011
Law Office of Robert W Kovacs, Jr.
172 Shrewsbury Street
Worcester, Massachusetts 01604
Greetings!

 

Welcome to our e-newsletter! The purpose of this newsletter is to keep you informed about bankruptcy and other areas of law. Please feel free to share this and future newsletters with your others. If you would prefer not to receive this e-newsletters in the future please click the link at the bottom of the page. I welcome any comments or suggestions for future newsletters.

Finally, thank you for taking the time to read our newsletter.

 

Sincerely,
Robert Kovacs
Law Office of Robert W Kovacs, Jr.

 

  

 

Your Massachusetts Fresh Start Bankruptcy

 

 

 

An individual's lifetime is filled with highs and lows. Take for example the life of auto maker Henry Ford. Ford worked for years as an engineer for Thomas Edison's company, where he experimented with gasoline engines. At age 36 he started his first car company, the Detroit Automobile Company, which went bankrupt two years later. A few years later he formed the Henry Ford Company, but clashed with his partners and was forced out. The Henry Ford Company was renamed Cadillac. Ford then formed a partnership, the "Ford & Malcomson" company, but again ran into financial trouble. Ford reincorporated this company as the Ford Motor Company and, well, you know the rest of the story. At the height of his wealth Henry Ford was worth almost $200 billion in today's dollars.

 

The federal bankruptcy law gives Americans like Henry Ford a second chance. In the 1918 U.S. Supreme Court case of Stellwagen v. Clum the Court stated:

 

"This purpose of the act has been again and again emphasized by the courts as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . a new opportunity in life and a clear

field for future effort, unhampere

An individual's lifetime is filled with highs and lows. Take for example the life of auto maker Henry Ford. Ford worked for years as an engineer for Thomas Edison's company, where he experimented with gasoline engines. At age 36 he started his first car company, the Detroit Automobile Company, which went bankrupt two years later. A few years later he formed the Henry Ford Company, but clashed with his partners and was forced out. The Henry Ford Company was renamed Cadillac. Ford then formed a partnership, the "Ford & Malcomson" company, but again ran into financial trouble. Ford reincorporated this company as the Ford Motor Company and, well, you know the rest of the story. At the height of his wealth Henry Ford was worth almost $200 billion in today's dollars.

 

The federal bankruptcy law gives Americans like Henry Ford a second chance. In the 1918 U.S. Supreme Court case of Stellwagen v. Clum the Court stated:

 

"This purpose of the act has been again and again emphasized by the courts as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . a new opportunity in life and a clear

d  by the pressure and discouragement of preexisting debt."

 

Bankruptcy attorneys refer to this second chance opportunity as a "fresh start." It is

a financial "do-over" and many Americans have taken advantage of the bankruptcy law to reorganize their finances and go on to a better future, including Mark Twain, Walt Disney, and Donald Trump. Financial distress can happen to anyone - just like Abraham Lincoln and Harry S. Truman who suffered devastating business failures before becoming our 16th and 33rd Presidents.

 

Bankruptcy in Massachusetts is a legal process that allows an individual time to repay or entirely discharge overwhelming debts. It is supervised by a federal bankruptcy judge, and overseen by a trustee appointed by the U.S. Department of Justice. If you have bills you cannot afford to pay, bankruptcy may be the legal remedy you need. Call the Law Office of Robert W. Kovacs, Jr. toll-free at (877) 315-2641 and discuss your fresh start options.

Your Massachusetts Fresh Start Bankruptcy

  

 

Pre-Bankruptcy Credit Counseling Requirement

 

 

Massachusetts bankruptcy filers are required receive credit counseling from an approved agency within 180 days before the bankruptcy filing date. This requirement was enacted in 2005 as part of the federal Bankruptcy Abuse Prevention and Consumer Protection Act.

 

In a few limited circumstances credit counseling is not required. These circumstances are identified by the federal law as:

 

(1)       incapacity where the person is so impaired by reason of mental illness or deficiency that the individual is incapable of making rational decisions;

(2)       disability where the person is so physically impaired that the individual is unable, after reasonable effort, to participate in an in person, telephone, or Internet briefing session; or

(3)       active military duty in a military combat zone (currently Arabian Peninsula Areas, Kosovo area, and Afghanistan).

 

The law allows individuals to receive credit counseling after the bankruptcy filing under the following conditions:

 

(1)       exigent circumstances exist that merit a waiver;

(2)       the individual requested credit counseling services from an approved nonprofit budget and credit counseling agency, but was unable to obtain the services during the 5-day period before filing bankruptcy; and

(3)       the request and explanation is satisfactory to the court.

 

Note that procrastination, inability to pay for the counseling, incarceration, etc. are not part of this list. The bankruptcy court is very reluctant to approve waivers except in the most extreme circumstances.  A pending lawsuit or foreclosure alone is not enough.

 

Only agencies approved by the Department of Justice's U.S. Trustee Program can issue pre-bankruptcy credit counseling certificated that are accepted by the bankruptcy court.  Each agency is required to provide the service free of charge if you cannot afford to pay the credit counseling fee. Otherwise, the agency will charge a fee (generally $50).  The session will last approximately 60 to 90 minutes and includes an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and may include a personal budget plan. This counseling session may take place in person, on the phone, or online.

 

Once your credit counseling session is completed, a certificate is issued which must be filed with the Massachusetts bankruptcy court. Failure to complete the credit counseling or file the certificate will result in the dismissal of your bankruptcy case.

 

If you have questions concerning bankruptcy or the credit counseling process, call the Law Office of Robert W. Kovacs, Jr. toll-free at (877) 315-2641. I recommend trusted credit counseling agencies for my Worcester bankruptcy clients. Do not overlook credit counseling or other requirements of the bankruptcy process. Get advice from an experienced Massachusetts bankruptcy attorney today!

About Our Law Firm

The Law Office of Robert W. Kovacs, Jr. is dedicated to helping individuals through overwhelming debt within the bankruptcy court.

If you have any questions please do not hesitate to contact us via e-mail or telephone.

You may also book an appointment on-line by clicking the here. 

 

Please visit our web site, www.RKovacsLaw.com, while there visit our bog were you can find these and many other articles.

  

Law Office of Robert W Kovacs, Jr.
172 Shrewsbury Street
Worcester, Massachusetts 01604
Telephone: 508-926-8833

E-mail: [email protected] 

Website: www.RKovacsLaw.com

 

The Law Office of Robert W. Kovacs, Jr. is a debt relief agency; helping people file for bankruptcy relief under the Bankruptcy Code. 

In This Issue
Your Massachusetts Fresh Start Bankruptcy
Pre-Bankruptcy Credit Counseling Requirement
Attorney Spotlight
me

Attorney Kovacs

accepts pro-bono and reduced fee referrals the Worcester County Bar Association.