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Frequently Asked Questions

Everything a homeowner needs to know before filing for bankruptcy Everything a homeowner needs to know before filing for bankruptcy

I'm a homeowner. What do I need to know?

Jan 22 2017

Parts of the bankruptcy code are specific to property owners. The bankruptcy court is designed to have jurisdiction over a debtor's real property and assets. In preparation for bankruptcy a Massachusetts homeowner should know:

  • The status of any liens
  • The current market values
  • The status of declarations of homestead

Subtracting the liens from the value we can easily determine the equity, or lack of equity, in each property. This information will help us determine the best course of action for the future of the properties.

Bankruptcy Objectives

Your starting conditions impact your objectives in bankruptcy. Like a snowflake your bankruptcy is unique, constructed of your assets and liabilities and tailored to your goals and ambitions. When it comes to real estate debt relief comes by means of principal reduction, lower interest rates and long term repayment plans. Alongside our clients we've custom-made hundreds of bankruptcy cases each designed to maximize the financial returns.

Stopping Foreclosure

Bankruptcy stops foreclosure. Except in special conditions debtors receive the full and immediate protection of court terminating any adverse action such as:

  • Foreclosure
  • Eviction
  • Repossession
  • Collection Letters, Liens, Levies and Lawsuits.

Although bankruptcy is a powerful tool for restructuring your secured home loans, it is not the only one. We firmly negotiate directly with your bank's attorney to establish affordable mortgage terms. Many settlement agreements go beyond what is strictly available in bankruptcy. Some by their very nature are completely confidential. Strong negotiating tactics fill out our tool chest.

Massachusetts Declaration of Homestead

If your Massachusetts property is owner occupied we strongly recommend ensuring your Declaration of Homestead has been filed at your registry of deeds. This single document will entitle you to protect the State allowed maximum equity in your home. This equity is protected from liquidation in bankruptcy and other encumbrances. Visit your county's online registry of deeds to verify you have a homestead recorded.

  • Get a Massachusetts Declaration of Homestead here.
  • Search the Massachusetts Land Records here.

You may update your existing declaration of homestead or record a new one by bringing a signed and notarized declaration to your local registry of deeds.

Investment Properties

Bankruptcy can be favorable to debtors with multiple real estate holdings. Like other real estate, bankruptcy law applies to investment properties also. Owners of investment property commonly file for Chapter 13 bankruptcy and should be familiar with plan treatment types here.


It is especially important for property owners to set out their objectives and financial goals before filing for bankruptcy protection. If you are a homeowner considering filing for bankruptcy we want the opportunity to explore your options.

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Carmenelisa Perez-Kudzma

Practicing law is my passion. At age eight a presidential speech motivated me to pursue my dreams of becoming an attorney. My singular purpose is to effectively represent my clients in the court of law.

Website: www.pklaw.law
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