The type of bankruptcy most individuals in Mississippi are likely to be familiar with, even if they have never declared bankruptcy themselves, is Chapter 7. Under Chapter 7 bankruptcy, many of a person's assets are liquidated to repay creditors. As a result, this type of bankruptcy is very attractive to those who struggle to cope with burdensome personal debt. On the other hand, some debtors may be hesitant to file since they worry about the credit-related drawbacks of this type of debt relief.
There are many different pros and cons of declaring any type of bankruptcy, and Chapter 7 for individuals is no exception. One of the main downsides related to credit is that Chapter 7 harms a person's credit score for years, as this type of bankruptcy can stay on a person's credit report for up to a decade. Nonetheless, the actual Chapter 7 process lasts only about three to six months. So, the tradeoff is a damaged credit score, but a relatively quick way to get out from under overwhelming debt.