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Southaven MS Bankruptcy Law Blog

Debt collectors may not threaten criminal charges in MS

For most residents in Mississippi, their experience with the court system is limited. Some may only need to go through the courts to obtain a marriage license, get divorced or pay a traffic ticket. For others, though, obtaining legal help for a financial issue may be their first thorough introduction to the local courts. Those struggling with out-of-control credit card debt may be threatened with a lawsuit or garnishment at some point. This is usually when a debtor could really benefit from knowing more about their legal options and how the courts work in these types of situations.

One of the basic facts about the court system in Mississippi and other states is that there is a criminal justice system as well as a civil court system. Sometimes a single incident, such as a car accident, will be addressed in the two different courts - a driver could face criminal charges if he or she breaks the law, while the same driver could be sued in civil court for damages they caused to another party. When it comes to personal finances, though, most local residents will be dealing only with the civil side of the legal system.

Chapter 13 and the Trustee's Pledge of Excellence

Many people in Northern Mississippi are familiar with the codes, rules, regulations and standards of their own profession. Most locals are probably somewhat familiar with certain famous standards of other professions, such as the Hippocratic Oath taken by physicians. For other professions, one is able to learn much about the role of the professional from their codes, pledges and the like, especially if an individual is going to rely on the expertise of that professional to help him or her.

For people consumed by debt, Chapter 13 bankruptcy is a powerful tool in the fight against that debt. Those who decide that filing for Chapter 13 is best for them usually commit to a debt repayment plan spanning three to five years. At the conclusion of their repayment period, remaining eligible debts may be discharged and the debtor achieves a fresh financial start. Chapter 13 often involves many details, processes and deadlines, which is why consulting with a professional can be vitally important.

Personal bankruptcy when life doesn't go as planned

It has often been said that life is what happens when you are busy making other plans. Countless times in life, people are blindsided by the unexpected. With regard to financial matters, unexpected life changes are nearly limitless in their ability to create an uncertain future. Whether it is the death of a family member, the loss of a job, the reality of paying for a college education or even just surviving in a world of inflation and unemployment, the unexpected always seems just around the corner. When it happens, it may be time to consider initiating a major financial decision, filing for personal bankruptcy.

Most people in Southaven don't plan on ever filing for bankruptcy - still, unanticipated events like a layoff or an accident with resulting medical expenses can quickly form a lot of overwhelming debt. In some cases, it may be possible to pay down the debt caused by life events and get it under control, but in other cases, this may not be feasible. Filing for bankruptcy can be a solution that comprehensively tackles the problems caused by indebtedness: financial uncertainty, creditor harassment, repossession, foreclosure and more.

Data point to potential financial challenges for car drivers

Ever since the economic crisis of several years ago, outlooks on the economy have been mixed. At times there seems to be good news, while at other times all predictions seem dire and even frightening. It's difficult to gauge the national outlook, although one's own financial future may be just as uncertain. Many Mississippi residents are still struggling with student loans, medical bills, mortgages, consumer debt and auto loans. Those who have financed their vehicle may wonder if they'll ever be able to pay it off or make up for missed payments; some might even be facing repossession.

According to the chief executive officer of JPMorgan Chase, auto lending may be in a precarious state in America. At a recent conference, he told listeners that the automotive category is "stretched." Information from Experian echoes this, showing that both the average size of car loans and the average size of car loan payments are both on the rise. In addition, last month the overall amount of auto loans surpassed $1 trillion. The average amount of a vehicle loan is now around $30,000, a record high. Finally, the average auto loan payment now tops $500 per month.

Chapter 13: A potent weapon against creditor harassment

Most Southaven residents have been there at one point or another: coming home to multiple messages on an answering machine, or seeing one's cellphone absorb countless voicemails from the same source. That source is a debt collector, and dealing with these entities is often something that is dreaded by those who owe more than they can pay. Creditor harassment is a serious problem in the United States; fortunately, there are ways to put an end to this damaging practice.

One way to stop creditor harassment in its tracks to file for Chapter 13 bankruptcy. This type of bankruptcy is a valuable tool that can help a person realign their finances in a productive and efficient manner. One of the major benefits of Chapter 13 is that it stops creditor harassment as well. What is creditor harassment, and why does it need to be halted in order for the debtor to start rebuilding?

Proof of Claim in Chapter 7 Bankruptcy

Filing for personal bankruptcy is a process involving many different steps and numerous forms and timelines. For those in Mississippi who can no longer cope with tremendous personal debt, Chapter 7 bankruptcy may be a fitting option if one qualifies. A local bankruptcy attorney can help a person determine if Chapter 7 bankruptcy is appropriate for them.

During the Chapter 7 bankruptcy process, a filer will likely encounter new terms with which they are unfamiliar. One such term is the phrase "proof of claim," which is an important element in the personal bankruptcy setup. Essentially, a proof of claim is a form used to indicate the amount of money owed to a creditor -- specifically, the amount owed on the debt of the bankruptcy filing. This important form must be filed in the same district where the bankruptcy case is pending.

Which types of debt may be subject to garnishment?

These days, many local Mississippi residents may consider themselves fortunate enough to just have a job. Employment is difficult to come by for many, and finding a job is a challenge for countless people. Still, even having a full-time job is no guarantee of immunity from financial challenges. For people who are behind on their bills and suffering from too much debt, they may face the threat of having their wages garnished.

A wage garnishment typically occurs when a creditor has secured a court order regarding unpaid debts owed to the creditor by the income-earner. The court order allows certain amounts of money to be withheld from the debtor’s paycheck in order to begin paying back the creditor. This process does not occur immediately and does take some time, but nevertheless it’s helpful for those facing garnishment to obtain help. Personal bankruptcy may put a stop to the wage garnishment process and help a person finally get out of debt.

Finally putting a stop to returning credit card debt

If a person in Mississippi is in serious trouble with credit cards and can't repay their creditors, he or she is likely to be in need of a plan for getting out of this untenable debt. Getting out of debt, though, is kind of like weight loss for some: it's manageable for a while but then the problem rears its head over and over again. Solving one's debt problems once and for all can be a difficult task for some, but it is not impossible.

Fortunately, massive credit card debt can be addressed via personal bankruptcy. Both Chapter 13 and Chapter 7 bankruptcy allow debtors to finally get rid of their credit card debt. A bankruptcy attorney can inform a filer of his or her legal options as well as the ways in which bankruptcy tackles debt. Personal bankruptcy is a particularly effective solution for debtors who need to stop garnishment, put a halt on foreclosure proceedings or need to stop harassment from persistent creditors.

Chapter 13 offers comprehensive debt solutions

Solving personal financial problems is rarely easy - after all, there are usually an array of solutions available but it can be difficult to determine which is the best for you and which offers the most thorough benefits. For individuals who have a serious need to reduce debt, Chapter 13 bankruptcy is a tool that can be used to fix a variety of problems associated with excessive debt.

Many people who are suffering from overwhelming debt, such as too much credit card debt or medical bills that have piled-up over the months and years, also have related issues such as creditor harassment, the threat of foreclosure and high interest rates on existing debt that make it impossible to catch up. These problems, and many more, can be tackled by filing for Chapter 13 with the help of an experienced Southaven bankruptcy attorney.

Coping with Credit Card Debt: Easier With Professional Help

Being burdened by debt is always difficult, but facing financial challenges along with creditor harassment can be particularly painful. Residents of Mississippi who have found that their consumer debt has grown out of control can consider several options for obtaining debt relief; a qualified attorney can offer legal advice regarding these options as well as strategic guidance for conquering credit card debt once and for all.

According to the Federal Trade Commission, knowing which debt relief tool is right for you depends on several different factors. These include your overall level of debt, your future objectives and your level of financial management skills. Some people might look into debt relief services, although the FTC recommends doing one's homework as to the legitimacy of such organizations before signing up with them. Unfortunately, there is no shortage of scammers looking to profit from someone else's misfortune, and the debt relief industry is no exception.

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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