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Southaven MS Bankruptcy Law Blog

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.

How can Chapter 13 bankruptcy help stop foreclosure?

Facing foreclosure places you in jeopardy of losing a family home which can be an overwhelming and stressful situation. There is a lot to know about bankruptcy options and Chapter 13 bankruptcy but one aspect of Chapter 13 bankruptcy it is important to be familiar with is that it may be able to prevent you from losing your home to foreclosure.

In general, Chapter 13 bankruptcy is an option that may be available to individuals who qualify to reorganize their debt and enjoy a fresh financial start. Typically, individuals who have a reliable source of income can qualify for Chapter 13 bankruptcy and a reorganization plan, developed through the bankruptcy process, for their debt. Part of the Chapter 13 bankruptcy process may help struggling homeowners with foreclosure.

Chapter 7: Beginning with the end in mind

Now that the first of July has come and gone, many may be pondering their to-do list for the second half of 2016. When it comes to financial planning, it's often helpful to start with the end in mind, such as making plans around New Year's, checking in halfway through the year and reaching one's goal as the year comes to a close. For some, obtaining debt relief may be an important goal, one that is often achievable with a better understanding of the Chapter 7 bankruptcy process.

Chapter 7 is a form of personal bankruptcy whereby eligible debts are discharged at the conclusion of the bankruptcy process. This type of bankruptcy is extremely helpful for debtors who qualify because it can provide relief from a variety of debts, from overwhelming credit card debts to extensive medical debt. One of the reasons why a Mississippi debtor might look into Chapter 7 is its ability to discharge debts rather than repay them. The discharge process often entails asset liquidation, which is another tool that can put debtors back on the right financial track.

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.

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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