Massachusetts Debt: The Basics

Statute of Limitations in Massachusetts

The statute of limitations in Massachusetts sets forth the maximum period of time, after certain events have taken place, in which legal proceedings may be initiated. For debt, the statute of limitations refers to the maximum period of time after a debtor has become delinquent. This means that period of time starts on the day after you have become past due on a payment.

It is important to note that the statute of limitations on debt varies from state to state and also depends on what type of debt it is and where the original transaction took place. The statute of limitations for Massachusetts is as follows:

• Oral Agreements: 6 years
• Written Contracts: 6 years
• Promissory Notes: 6 years (20 years if signed before a witness)
• Open Accounts (credit cards): 6 years

Debt Settlement in Massachusetts

This type of debt management program in Massachusetts is when a debt relief agency negotiates with your creditors on your behalf to lower the principal amount of debts owed, and perhaps even lower the interest rate on those debts. Because this type of debt relief program in Massachusetts eliminates some of the debt you owe through debt forgiveness, this form of debt management can be very appealing. However, you may not qualify for this option. More often than not, a debtor will qualify for a Massachusetts debt consolidation program instead. By working with an agency that provides debt management in Massachusetts, you’ll be able to find out whether you qualify for debt settlement in Massachusetts or debt consolidation in Massachusetts.

Consumer Credit Counseling

Consumer credit counseling is when a debt relief agency provides with you classes or counseling on how to better manage your finances. The hope is that by going through credit counseling, you will not only be able to better manage any current debts, but that you will also help to keep you out of future debt.

Credit counseling is often paired in conjunction with one of the other options for debt relief in Massachusetts, such as debt consolidation in Massachusetts or debt settlement in Massachusetts.

Bankruptcy in Massachusetts

Filing for bankruptcy in Massachusetts should be considered your last resort for debt relief in Massachusetts. This is because the bankruptcy process can leave a long-lasting negative effect on your credit score. Before you begin the bankruptcy process, it is advisable that you contact an agency that provides debt management in Massachusetts first. This agency will help you to exhaust all other options first, such as debt consolidation loans in Massachusetts paired with consumer credit counseling.

Filing for bankruptcy in Massachusetts includes two popular options, bankruptcy chapter 7 and bankruptcy chapter 13. When filing for bankruptcy in Massachusetts, it is important to speak with a professional to understand your rights as a debtor, including what properties may be exempt from bankruptcy in Massachusetts.

Paying off mounting debts can be an extremely stressful situation. By working with a company that helps you with debt relief in Massachusetts such as Debt Quest, you will have the peace of mind knowing that a knowledgeable and trained professional will analyze your personal debt situation and recommend the best course of action for you, whether that is through debt consolidation in Massachusetts, debt settlement in Massachusetts, credit counseling or, as a last resort, bankruptcy in Massachusetts. It is possible to become debt free in Massachusetts.

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