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Southaven MS Bankruptcy Law Blog

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.

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.

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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