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Southaven MS Bankruptcy Law Blog

Can I get a hardship discharge under Chapter 13?

People in Mississippi can get into debt for a variety of reasons. While they might initially resist the idea of filing for Chapter 13 bankruptcy, it is a sound and perfectly legal method of overcoming untenable financial challenges and getting a fresh financial start. There are also subsets of Chapter 13 bankruptcy that can be beneficial if the situation warrants it. One is the Chapter 13 hardship discharge. Knowing who is eligible for this option can help with taking the steps toward using it and making it a reality.

Once the Chapter 13 bankruptcy plan has been confirmed, it is possible that a situation could come up that stops the debtor from completing it as it was organized. When this is the case, the debtor has the right to ask for a hardship discharge. There are criteria that must be met for the hardship discharge to be granted and those that are considering it must be aware of them.

Report warns of 'debt traps' in struggling economy

As long as there has been credit extended to consumers, it seems, there have also been predators and scammers waiting to take advantage of the system. Nowadays, there are countless scams and predatory lending practices waiting to con Mississippi residents out of their hard-earned money. Unfortunately, in today's struggling economy, many of the people affected by them don't understand their options until it's too late.

Many Southaven residents have probably seen the numerous ads for payday lenders and auto title loan companies. These usually promise "fast cash" to people who are in dire financial straits and often need a small loan to tide them over until payday. However, the marketing practices for these types of loans often leave out the important details, such as the extremely high interest rates and stiff penalties for non-timely repayment.

Find out what personal bankruptcy can do for you

When it comes to fixing problems in one's life, making a drastic change is often needed to effect real change. For example, many local Mississippi residents likely want to drop a few pounds, but losing weight is notoriously difficult. Many try, it seems, but few succeed. The ones who do are usually the people who make a dramatic change and are held accountable to stick with it.

The same is true when it comes to financial challenges. As with losing weight, many in Southaven probably want to get out of severe debt or eliminate debt altogether. This is easier said than done, of course, but it can be accomplished with a significant change in personal financial management. This change can come about via personal bankruptcy, which is a very powerful tool for the comprehensive resolution of overwhelming debt.

Time is of the essence in order to stop foreclosure

The thought of losing one's home is a horrible prospect for homeowners in northern Mississippi and surrounding areas. In today's age of seemingly-constant economic fluctuation, the family home is often a piece of stability that may be lacking elsewhere. In addition, a home is often the biggest investment a family or individual makes, and as a result it is vitally important. Finally, the family home usually contains countless cherished memories and personal meaning that can be devastating to let go of.

As a result of this importance of homes, foreclosure is a frightening outcome for financial challenges. What can begin as too much consumer debt can, unfortunately, snowball into overwhelming obligations that culminate in the threat of foreclosure. A bankruptcy attorney can explain how Chapter 13 is a tool that can be wielded to stop foreclosure in its tracks.

What are some of the common reasons for filing Chapter 7?

Just as every person has their own distinct life story, so does each person have a unique set of financial circumstances. When a Mississippi resident's personal monetary situation involves significant financial challenges, moving forward can be difficult. However, one solution that may be appropriate for some is to file for bankruptcy.

People choose to file personal bankruptcy for many different reasons. If a person is considering filing, they need to determine if they are better off filing for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is sometimes known as "strait bankruptcy," and it can be very beneficial to qualifying individuals who cannot find a way out of overwhelming debt. Chapter 7 can not only discharge certain eligible debts but it can also stop wage garnishment as well as harassment from creditors.

Beware of credit card debt repair offering a 'new identity'

At one point or another, many people seek a fresh start in life. This could be for any number of reasons, but for many in Southaven and the surrounding areas, the reason has its roots in one's personal finances. When a person is in the midst of severe financial struggle, such as overwhelming debt, it can be tempting to believe that eliminating debt is fast and easy. Unfortunately, there are all too many credit repair scams waiting for people who may be better off filing for bankruptcy or otherwise seeking legitimate, professional financial help.

When a person is having problems with credit card debt in particular, finding real solutions to a very real problem can seem daunting. According to the Federal Trade Commission, there is no fast nor effortless solution to damaged credit. In fact, the FTC notes that only time and a feasible debt repayment plan can effectively tackle damaged credit.

Preventing and resolving asset forfeiture

Almost everyone in Southaven suffers from financial worry at some point, but most of the time the situation is not dire or extreme. Sometimes, though, money problems can be so all-consuming that a person is overcome with frustration or even hopelessness. This is especially true if the person is facing the threat of asset forfeiture, as getting one's personal property taken away can be particularly demoralizing.

Why is asset forfeiture so worrisome for so many? It may involve the taking-away of an extremely valuable possession, such as the car one needs to get to work or the family home that holds precious memories and stability for loved ones. In the cases of homes and cars, these things also tend to involve financial stability in and of themselves. For instance, a car provides transportation to earn a living, while a home is an investment that may be the most valuable thing a family owns. In any event, asset forfeiture can also be deeply unsettling because it involves persistent debt collectors, potential harassment and a debtor may also feel embarrassment having to explain the situation to family, friends or employers if they experience wage garnishment.

Chapter 7, Chapter 13 and the impact on future creditors

One of the main concerns of people considering filing for bankruptcy is how it will affect their credit score. While it's true that all forms of personal bankruptcy, including Chapter 7 and Chapter 13 bankruptcy, will temporarily tarnish a filer's credit score, both allow the filer to obtain significant debt relief. A Mississippi bankruptcy attorney can aid a person looking to understand how best to proceed during and after bankruptcy.

Both forms of personal bankruptcy will stay on a person's credit record for at least seven years. For those whose primary concern is obtaining a loan, such as a mortgage, as soon as possible after bankruptcy, Chapter 13 might be one option to consider. Chapter 13 allows the filer to restructure his or her debt and repay creditors in an organized manner that typically concludes within three to five years. Following the end of this period, the debtor's remaining eligible debts can often be discharged.

What are some examples of exempt Chapter 7 property?

Those who find themselves struggling with debt for more than just a short period of time may have considered personal bankruptcy. Chapter 13 or Chapter 7 bankruptcy can be powerful tools for individuals who have severe financial struggles that can't be solved via a simple budget adjustment. However, personal bankruptcy is an involved process laden with many legal terms and processes that are rarely easy to understand. A local Chapter 7 bankruptcy attorney can offer answers to those in financial distress.

Chapter 7 bankruptcy is often known as liquidation bankruptcy. This is because when a person files for Chapter 7, that individual typically has to turn over a certain amount of personal assets to the bankruptcy estate. The estate, in turn, manages the sale of such assets in order to repay the debtor's creditors. Not all assets must go to the bankruptcy estate, however. Speaking with one's bankruptcy attorney can clarify this important aspect of Chapter 7.

The extreme financial challenges of medical expenses

What is the leading cause of bankruptcy in the United States? For some in Mississippi, the answer may be surprising. It is not credit cards or student loans but actually medical debt that has become the number one cause of personal bankruptcy in the United States.

This particular type of consumer debt is often very difficult to deal with because while a person is trying to pay it back, they may also be recovering from an illness, injury or sudden disability. An experienced personal bankruptcy attorney can help a person who is beset with mountains of medical bills and no feasible way to tackle the growing debt. A bankruptcy attorney can also counsel on the available legal options when too much credit card debt and other types of consumer debt become an overwhelming problem.

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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