Mississippi Bankruptcy Facts

If you are struggling to pay off your debt, it may seem like you are never going to get everything taken eliminated. You may have old credit card bills that were never paid or medical expenses that keep being postponed. But no matter how much debt you are dealing with or why, the good news is that you have options. Our bankruptcy lawyers in Mississippi will help you get through your financial burdens and help you get rid of your debt as quickly as possible.

When working with our Mississippi bankruptcy attorneys, you can expect quick and professional legal counsel from an attorney you can trust. Your lawyer will review your financial history to determine if bankruptcy is right for you, and if you are a good candidate, they will sit down and discuss your options thoroughly so you will not have any questions or doubt.

With just one phone call to our local bankruptcy lawyers, you can be one step closer toward being debt free. But first, let’s take a look at some important facts every debtor should know before initiating the bankruptcy process in Mississippi.

What Exactly is Bankruptcy Protection?

Bankruptcy is a federal process in which debtors – both individuals and businesses – can reduce or possibly eliminate their financial obligations and get creditors off their backs. There are several different chapters that can be filed in Mississippi, but if you are approved for protection, you can expect to kiss your debt goodbye. Below are some details regarding the two most popular chapters in Mississippi, Chapters 7 and 13.

Mississippi Chapter 7 & Chapter 13 Bankruptcies

Chapter 7 is called liquidation bankruptcy because a debtor’s assets are liquidated to pay off creditors. Chapter 13 is known as reorganization bankruptcy because debtors are placed on a payment play to repay creditors what they owe. Each of these chapters is different in its own way and will lead to separate outcomes. Below are some further details regarding each petition so you can get an idea of what to expect if you qualify for either or both.

Mississippi Chapter 7 Bankruptcy:

Pros:

  • - Both individuals and businesses may qualify
  • - Usually all unsecured debt is eliminated
  • - Cases are short, typically lasting under six months
  • - There is no minimum amount of debt required to file
  • - Certain assets are exempt from liquidation, including the debtor’s residence, personal effects such as clothes or heirlooms, and pension plans  – to name a few

 

Cons:

  • - All non-exempt property is liquidated to pay off debts
  • - Income requirements are strict
  • - Debtors can only file once every six years

 

Mississippi Chapter 13 Bankruptcy:

 

Pros:

  • - No assets are liquidated; debtors get to keep all their property
  • - Debtors have up to five years to repay creditors
  • - Foreclosure is avoided as long as debtors follow their repayment plan
  • - Debtors can file at any time and repeatedly without restriction

 

Cons:

  • - Only individuals can file, not businesses
  • - Debtors are still responsible for paying creditors; debts cannot be wiped out completely
  • - Although given extra time to pay creditors, emerging from Chapter 13 bankruptcy protection takes a lot longer
  • - Filing fees are higher

How a Mississippi Bankruptcy Lawyer Can Help

It can be very confusing to determine which chapter is right for your particular needs, but that’s where bankruptcy lawyers step in to help. There are times when Mississippi debtors qualify for both Chapter 7 and 13 and may not know which option to choose or may be originally denied protection because of their income. Bankruptcy lawyers understand that this can sometimes happen, and will take on your case and make sure your debts are reduced as much as possible, speaking with your creditors to devise a way for everyone to be satisfied.

Contact one of our experienced Mississippi bankruptcy attorneys today and be on your way to swift and successful debt relief.