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Southaven MS Bankruptcy Law Blog

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.

Drastically reduce debt via Chapter 13

As many people in northern Mississippi probably already know, there is no limit to the types of financial challenges a person can have. Frequently, after a person has experienced several different types of money woes, the root of their overall problem is too much debt. Contrary to what some advertisements may promise, emerging from debt is neither easy nor quick. It takes hard work, dedication, and a willingness to do what it takes for a fresh financial start.

How is a fresh financial start possible when a person is entrenched in debt? Personal bankruptcy is a tool that individuals may use if it is appropriate for their situation - by choosing either Chapter 7 or Chapter 13, a person in debt can start resolving a problem that once seemed too big to tackle. For many, Chapter 13 is a fitting option that can provide debt relief, reduce debt, reduce interest payments and stop creditor harassment.

Drastically reduce debt via Chapter 13

As many people in northern Mississippi probably already know, there is no limit to the types of financial challenges a person can have. Frequently, after a person has experienced several different types of money woes, the root of their overall problem is too much debt. Contrary to what some advertisements may promise, emerging from debt is neither easy nor quick. It takes hard work, dedication, and a willingness to do what it takes for a fresh financial start.

How is a fresh financial start possible when a person is entrenched in debt? Personal bankruptcy is a tool that individuals may use if it is appropriate for their situation - by choosing either Chapter 7 or Chapter 13, a person in debt can start resolving a problem that once seemed too big to tackle. For many, Chapter 13 is a fitting option that can provide debt relief, reduce debt, reduce interest payments and stop creditor harassment.

Media mogul may soon declare personal bankruptcy

In the past, it was sometimes assumed that people filed for bankruptcy due to overspending, such as accumulating too much credit card. While this type of situation was not uncommon when the economy was flourishing, today's financial environment means that Mississippi residents file bankruptcy for all sorts of reasons.

Moreover, many of these reasons don't even involve past overspending on the filer's part. A person may need to file Chapter 7 or Chapter 13, for instance, due to unmanageable medical bills, overwhelming student loan debt combined with other consumer debt, credit card debt due to emergency reliance upon such cards during unemployment, and various other unexpected life changes. In addition, a person may need to file for personal bankruptcy if they have become the target of a lawsuit.

Can a debtor be fired over wage garnishment?

It's not unusual for people to be struggling with finances nowadays, as many in Southaven struggle to confront shifting employment trends, an unpredictable economy and a cost of living that never seems to level off. When people fall behind on their bills, a situation can very quickly and easily go from bad to worse; a few missed payments can become the threat of garnishment, for instance. An experienced personal bankruptcy attorney can explain asset forfeiture and how to combat the threat.

Wage garnishment in particular is very unsettling to debtors, and often for good reason. A wage garnishment typically occurs when a court order is obtained to withhold a certain amount of money from a debtor's paycheck. The money that is withheld is used to pay back the debt. Usually, creditors or debt collectors attempt to contact the debtor many times before resorting to garnishment. In many instances it is possible to prevent garnishment - this can even be done through personal bankruptcy.

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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