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Southaven MS Bankruptcy Law Blog

Benefits of eliminating debt

Anyone who has struggled with debt knows the huge emotional toll that such a struggle can take. Debt, particularly overwhelming debt, can cause a person to feel understandably trapped, depressed and under extreme stress and pressure. However, eliminating debt and taking care of one's creditors can provide significant psychological benefits to counteract the accumulation of immense stress.

While spending money typically brings some form of happiness to spenders, the debt brought on by that spending can easily overshadow those pleasant feelings. Those who feel crushed under the weight of overwhelming debt can find a fresh financial start by filing for Chapter 7 bankruptcy. This form of personal bankruptcy is centered on liquidation of assets in order to satisfy creditors' demands.

What is the role of the personal bankruptcy trustee?

When a Mississippi resident attempts to resolve significant financial challenges, they may look to bankruptcy as a solution. Filing for personal bankruptcy can help a resident eliminate or re-structure debt in such a manner that a new financial beginning is truly possible. However, the bankruptcy process can be complicated whether a person is filing for Chapter 7 or Chapter 13, and an attorney's guidance is usually welcomed by those seeking to file.

One term that many who file will encounter is the bankruptcy trustee. A U.S. trustee is a person who is tasked with overseeing the administration of not only various bankruptcy cases but also trustees and estates. This individual serves under the Justice Department and also monitors plans, fee applications and creditors' committees. A U.S. trustee may also perform other duties dictated by statute.

How do I know if Chapter 7 is really right for me?

Chapter 7 bankruptcy, often known as liquidation or strait bankruptcy, is an appealing option to many faced with financial hardship in Mississippi. Under Chapter 7, many of a debtor's eligible debts are ultimately wiped out and the individual is able to start anew on different financial footing. However, there are many pros and cons to all forms of bankruptcy, and Chapter 7 is no exception. In order to truly understand if Chapter 7 is the right option for you, it may be wise to seek the guidance of a Southaven bankruptcy attorney.

Some individuals may be worried about the effect Chapter 7 will have on their credit score. While personal bankruptcy does not positively affect a person's credit score, both Chapter 7 and Chapter 13 have long-lasting financial benefits that may outweigh the credit score implication. Some debtors may have concerns about the types of property they will lose under Chapter 7. There may be exemptions for certain types of property, however, including vehicles. An experienced bankruptcy attorney can help clear up many of the misconceptions surrounding Chapter 7.

Information submitted to the court in a Chapter 13 case

Chapter 13 bankruptcy features several advantages for Mississippians pressured by debt. This type of bankruptcy offers debt relief via a three-to-five-year plan of manageable payments. Chapter 13 can also stop creditor harassment and foreclosure in addition to helping an individual get back on their feet financially. Finally, most individuals in Southaven are likely to be eligible for Chapter 13, as the main requirements are one's unsecured debts are less than $383,175. An additional requirement is that secured debts must be less than $1,149,525.

If one is eligible to file for Chapter 13 bankruptcy, what types of information will need to be provided to the court? A professional bankruptcy attorney can take care of the filing for a debtor, although the debtor will need to provide their lawyer with certain important pieces of financial information. This typically includes a comprehensive listing of all of one's creditors as well as the amounts of the claims each creditor has. Then, information about the debtor is provided: their income, including frequency and source, their expenses including taxes and a listing of all of their property.

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.

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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