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Southaven MS Bankruptcy Law Blog

It is possible to stop the threat of repossession

For most people in northern Mississippi, getting the mail is an everyday chore that doesn't merit much thought. For those suffering from an inability to keep up with their bills, though, getting the mail can be a daily cause for anxiety. In particular, receiving notice that one's accounts are going into collections can be highly intimidating, especially if the threats eventually become ones of repossession, garnishment or other forms of asset forfeiture.

What can a person do if they are behind on their car payments? First, it never does any good to panic about the situation. Many local residents have been in the exact same situation and have found a way out. Of course, it's understandable to be extremely worried, as one's car is usually one's way to get to and from work, so keeping one's vehicle is almost always a primary concern. Fortunately, there are ways to stop repossession.

Obtain a fresh financial start with Chapter 13

Getting out of debt is rarely easy. Obtaining a fresh financial start can be even more difficult, as debt relief is often just one element in the larger picture of financial management. For Mississippi residents trying to cope with debt on their own, escaping from their financial circumstances may seem impossible. However, those who consider filing for Chapter 13 often find that a fresh start is indeed possible.

What is Chapter 13 bankruptcy? Under the terms of a Chapter 13 bankruptcy, a debtor often sees their qualifying debts reduced and agree to a repayment plan of three to five years. The repayment plan involves manageable payments which allow the debtor to demonstrate their ability to make timely and complete payments. In addition, at the conclusion of the repayment plan, the debtor's remaining qualifying debts are often discharged. Chapter 13 can also stop creditor harassment, allowing a filer to move on with their life in peace.

Mississippi ranked worst in nation for student debt

Many Southaven residents want their children to grow up, obtain a college education and earn a good income while working a fulfilling career. In today's economy, though, a college education can leave one with significant debt. When this debt is combined with other debt, such as credit card debt or medical expenses, a young adult may become completely overwhelmed. In cases where qualifying debts far outpace one's income, personal bankruptcy may be a solution.

In a recent study, Mississippi was ranked the worst state regarding student debt. According to the Financial Aid Director for the Mississippi Institutions of Higher Learning, half of Mississippi's graduating students leave their institution with some form of debt. While some may assume this is an issue affecting only students from four-year universities, the statistic is also true for those coming out of two-year schools. It is also true regardless of whether the institutions are public or private.

Can debt settlement companies really erase credit card debt?

With so many Americans struggling with bills associated with credit cards, it's no surprise that there are countless offers to erase one's consumer debt. Some Southaven residents may have even received offers from debt settlement companies; these offers often promise to erase one's credit card debt or otherwise negotiate with creditors on your behalf. It's helpful to know more about these offers in order to steer clear of damaging scams.

First, how do debt settlement companies operate? Usually, these for-profit entities encourage debtors to stop making payments to creditors and instead put a certain amount of money in an escrow-like account. The monthly payments are supposed to add up to a lump sum that is then used to settle the account with creditors. Usually, this lump sum is less than the total amount of debt owed, so it is often an attractive option for those who cannot repay their debt.

Surprising facts about Chapter 7 bankruptcy

Filing for bankruptcy can offer individuals and businesses a much-needed fresh financial start during difficult times. However, before a case is filed, filers generally have plenty of questions. As a result, northern Mississippi residents who file for bankruptcy often find a consultation with a bankruptcy attorney to be just the beginning of a financial and legal learning process.

There are a few facts about Chapter 7 bankruptcy that many potential filers might not know. Some might assume Chapter 7 is only available to individuals; while it's true that individuals filing for Chapter 7 must fit certain requirements, Chapter 7's advantages are also available to businesses. Business owners who want to learn more about Chapter 7 for businesses can schedule a session with a Southaven bankruptcy attorney.

Even Mississippi millionaires can benefit from bankruptcy

Most Southaven residents probably associate personal bankruptcy with individuals struggling with their finances. Indeed, Chapter 7 or Chapter 13 bankruptcies help debtors take charge of their finances and confront difficult situations. However, not everyone who struggles with debt is low-income. Even Mississippi millionaires and other high earners can find themselves filing for bankruptcy to achieve a fresh start.

Those who listen to hip-hop may have heard that rapper 50 Cent recently filed for bankruptcy. This may surprise some as it might be assumed that celebrities with lavish lifestyles would simply be able to scale back and pay off their debts. As many local families know, though, this is often much easier said than done, no matter one's income. In 50 Cent's case, Forbes estimated his net worth to be over $150 million just two months ago. He has made as much as $100 million back in 2007 from a lucrative investment in the popular Vitamin Water line of drinks, has appeared in multiple films and he produces a show on the Starz network.

Under threat of forfeiture? Don't delay in seeking help

One of the most understandable responses to overwhelming stress is to avoid dealing with the issue. Particularly when it comes to personal finances, many Mississippi residents are likely to put off thinking about the problem until it becomes so severe that they have no choice. For those who feel they are sinking under the weight of their financial problems, there is help available.

One of the most stressful financial situations a Southaven resident might encounter is asset forfeiture. Even the threat of having one's personal property seized due to non-payment can be enormously draining. Those who delay in seeking help, though, may be unintentionally making the problem much worse. Those who have received notice of potential repossession, foreclosure or wage garnishment can often breathe a sigh of relief after obtaining professional legal help.

What must filers do to complete the Chapter 13 process?

Obtaining a fresh financial start in Mississippi is possible, but it often seems like an extremely complicated task. Those who are considering Chapter 13 bankruptcy as a way to gain new financial footing may be interested in knowing the steps to the process. While each individual's case is unique, there are several general steps that most filers must take in order to declare this type of personal bankruptcy.

First, prospective filers need to decide if Chapter 13 is indeed the right option for them. In some cases, Chapter 7 may be more appropriate, but in many chases Chapter 13 is a suitable choice. Discussing one's finances with a Southaven bankruptcy attorney can help a local resident decide which type of bankruptcy to file. Part of this decision-making process involves determining eligibility for Chapter 13. Individuals will typically need to calculate their debts and compare their income to a potential repayment plan. In addition, filers will also typically have to calculate the total value of their property as well.

The perils of starting a relationship shackled to debt

With summer well underway, many Southaven residents have probably attended, or will attend, their fair share of weddings this season. Weddings and marriages are happy occasions, of course, but they can also be occasions ripe for serious discussions about the future. Since one of the topics couples tend to frequently fight over is money, it can be helpful to discuss finances with one's partner before tying the knot.

In particular, if one or both spouses is bringing credit card debt into the relationship, it can be beneficial to discuss the situation thoroughly with one's mate. A recent survey of more than 2,000 adults revealed that, of those who combine finances, 35 percent brought credit card debt with them into the relationship. On average, those who brought this type of consumer debt into their relationships had a little over $4,000 in credit card debt. Interestingly, those in the "millennial" age range - despite being known for student loan issues - were more likely to have credit card debt than either student loans or car payments.

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.

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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