Jump to Navigation

Southaven MS Bankruptcy Law Blog

Mississippi multi-millionaire files for Chapter 7

Some Southaven residents might assume that only those with relatively low incomes struggle with overwhelming debt. What is actually the case with personal debt, though, is that sometimes even a high income can't compete with staggering amounts of debt. Recently, a multi-millionaire from Columbus became involved in a Chapter 7 bankruptcy case in an ongoing dispute with his creditors.

Most individuals filing for Chapter 7 do so voluntarily - that is, they choose to file for bankruptcy for any number of valid reasons. However, it is also possible for creditors to file a petition for involuntary bankruptcy of a debtor in certain situations. A skilled bankruptcy attorney can help individuals and business owners learn more about voluntary and involuntary bankruptcy petitions. In this case, the entrepreneur's four creditors filed the petition last September, and the businessman must appear in federal court June 3.

What types of asset forfeiture can be stopped by bankruptcy?

After experiencing various types of financial obstacles, a Northern Mississippi resident can start to feel threatened. After all, the individual may be receiving calls and letters from creditors or may even be experiencing creditor harassment. In addition, the person might be facing the threat of garnishment, repossession or foreclosure. The possibility of asset forfeiture is understandably a frightening one, but there are legal solutions to these financial problems.

Those struggling with the threat of asset forfeiture will likely be relieved to know that bankruptcy can stop repossession, wage garnishment and even foreclosure. In Mississippi, relief comes rapidly since as soon as a person files for Chapter 7 or Chapter 13 bankruptcy, both repossession and garnishment actions must stop. In addition, collectors are no longer able to harass the filer. An attorney skilled in individual bankruptcy can assist a person with choosing between Chapter 7 or Chapter 13, getting the proper documentation required and starting the actual filing.

Graduation season may inadvertently invite financial challenges

In Mississippi and across the nation, during the month of May the minds of many are on school - in particular, graduation. By mid-May, many college seniors have already graduated and countless high school seniors are likely eagerly anticipating their own upcoming graduations. While the time is typically a hopeful one, there may be accompanying financial challenges that can cause families to review their money situation and take serious stock of their financial future.

For parents of soon-to-be high school grads, the prospect of college tuition may be a daunting one. Financial aid can only go so far, and many families are left with the prospect of both staggering student loans and sizable parental loans. The idea of taking on more debt can be overwhelming for families already in need of debt relief. Consequently, the prospect of personal bankruptcy may arise for parents wondering how they can get a handle on the debt they already have. Both Chapter 7 and Chapter 13 bankruptcy can allow a filer to better prepare for the future by securing a fresh financial start.

The link between credit cards and depression

Those who are struggling with debt in Southaven know that there can be many negative effects of that struggle: stress, worry, anxiety and potentially even depression. According to a recently reported study, even small amounts of debt can cause depression. Due to the severe effects of unmanageable debt, local residents may wish to learn more about filing for bankruptcy and how it can eliminate or consolidate debt.

Researchers from the University of Wisconsin-Madison observed that short-term household debt, such as credit card debt, increased symptoms of depression. The same was true of overdue bills, which can coincide with heavy use of credit cards to meet one's everyday expenses. Interestingly, the researchers found that the tendency of debt to cause depressive symptoms was higher for those who were unmarried.

The Chapter 7 means test for Mississippians

Mississippians in need of debt relief have several legal options at their disposal. By taking the facts of their financial situation to a bankruptcy attorney, individuals can learn more about which route may be best for them. If personal bankruptcy is appropriate, debtors may be interested in learning more about Chapter 7 bankruptcy.

Sometimes known as strait bankruptcy, this type of solution typically involves liquidation of certain assets and discharges of many debts. Since Chapter 7 for individuals can offer significant debt relief, many Southaven residents will want to know if they qualify.

What happens at the end of a Chapter 13 repayment plan?

Those who find themselves in need of debt relief may consider filing for Chapter 13 bankruptcy. Unlike Chapter 7, which provides a discharge of eligible debts via liquidation, Chapter 13 entails a repayment plan for eligible debts. Southaven residents may have questions about the benefits of Chapter 13, as well as about the actual bankruptcy process itself. One common question regarding Chapter 13 is: what happens at the end of the repayment plan?

At the conclusion of a Chapter 13 repayment plan, the debtor is generally able to receive a discharge of their eligible debts. The debtor will typically be required to complete a financial education class and are not eligible for Chapter 13 if they have discharged their debts in a previous case filed within a certain amount of time. For prior Chapter 13 bankruptcy cases, the time limit is two years; for prior Chapter 7, Chapter 11 and Chapter 12 cases, the debtor must not have had a prior discharge within the past four years.

Student loan data points to intense need for debt relief

Many Southaven residents have likely heard of the negative impact student loans have had on Americans' existing financial challenges. Countless college graduates, and even those who haven't finished their degrees, struggle with the need for debt relief. While student loans have financed public and private college educations for years, today they represent an increasingly sizable share of government-issued debt.

Information out of the Federal Reserve Bank shows that over 11 percent of student loans were classified as delinquent during the fourth quarter of 2014. According to the Education Department, 13.7 percent of borrowers who would have started repayment in 2011 have defaulted on their loans. Additional data points to a troubling mix of factors that could cause even more Americans to become buried in debt. For instance, it is estimated that another $1 trillion in student loan debt will accumulate in the next ten years. This is partly due to the soaring costs of attending college; tuition has increased by over 1,000 percent since the late 1970s.

Efficient bankruptcy filing key to stopping garnishment

Many northern Mississippi residents depend on their weekly or monthly paycheck to pay bills and meet various legal obligations. Still, in a struggling economy, expenses can quickly get out of hand, debts may spiral out of control -- and at some point, that paycheck may be put in jeopardy. The threat of garnishment is very real to many local residents, but the threat can be eradicated with legal help.

Stopping garnishment is possible; however, many debtors may not know where to begin or how to ask for help. The legal experience of Heidi S. Milam, Attorney at Law P.L.L.C. can help local individuals and families struggling with the possibility of asset forfeiture. Wage garnishment can be halted via filing for bankruptcy - in fact, as soon as one files, wage garnishing actions must come to a stop. Filing for bankruptcy also puts an immediate end to repossession action as well, making bankruptcy an option for those who cannot afford to live without their full paycheck, vehicle and other vital personal property.

Credit cards feature various types of annual percentage rates

Credit card interest rates are commonly encountered by residents of Southaven, but not everyone understands the different types of rates and their financial implications. As some local residents may know, credit card debt has a way of quickly getting out of hand; at that point, it may be necessary to take decisive steps, such as filing for bankruptcy, in order to take care of the debt. Still, it’s helpful to understand credit card interest in order to avoid or resolve issues with credit card debt.

In its most basic form, credit card interest rates are the price a person pays for a credit card’s borrowing capability. With most credit cards, the interest rate is a yearly rate known as an APR, or annual percentage rate. However, one credit card account can sometimes feature more than a single APR. In such cases it is often different types of transactions, such as purchases versus balance transfers, that have different APRs. Moreover, one APR may vary over time, such as a promotional rate that later changes to a higher rate after a set period of time.

What types of debts cannot be discharged via Chapter 7?

Commonly known as "straight bankruptcy" or liquidation bankruptcy, Chapter 7 bankruptcy is an option for many struggling with debt in Mississippi. Since many debts can be discharged under Chapter 7, many debtors will gravitate towards this option since repayment is not feasible. Still, it's important to know that not every type of debt can be discharged via Chapter 7 bankruptcy. As a result, those considering filing for this type of bankruptcy may wish to learn more.

Under Chapter 7, many common sources of overwhelming debt can be discharged; these include credit card debt and many types of medical debt. However, there are certain other forms of debt for which a debtor remains legally responsible. These include student loans, taxes and debts stemming from fraud or drunk driving. In addition, many types of debt related to family law are also non-dischargeable; these include child support obligations, alimony or spousal support and property settlements stemming from divorces.

FindLaw Network

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Subscribe to this blog's feed Visit Our Bankruptcy Law Website Heidi S. Milam

Attorney at Law, P.L.L.C.
7160 Tchulahoma Road, Suite A5
Southaven, MS 38671

Phone: 662-655-1605
Toll Free: 888-341-8136

Fax: 866-267-5360