In Mississippi, bankruptcy provides assistance for individuals who are overwhelmed by debt. The opportunity helps them eliminate some debts through discharge and others through either a new payment plan or liquidation. Local lawyers in Oxford MS offer assistance for all chapters of bankruptcy.
The chapters of
bankruptcy offer efficient plans for settling debts. However,
consumers must qualify for the chapter of choice before filing.
Chapter 13 bankruptcy requires the consumer to have an income above
the median for their household. The means test is performed for
chapter 7, and the consumer must have an income that below the median
for their household.
Advantages of Each Chapter
Chapter 13 allows
consumers to pay off their debts over three to five years. The
consumer pays a monthly payment to the court according to the value
of their debts. The automatic stay for the chapter lasts up to five
Chapter 7 is the
liquidation process and allows the consumer to pay off their debts by
selling some assets. It is completed in six months, making it
possible for consumers to become debt-free quickly. The automatic
stay lasts no longer than six months.
Requirements for Bankruptcy
All consumers who
want to file for bankruptcy must attend a credit counseling course
that is approved by the state. Completion of the course is required
by the bankruptcy court. The course prepares the consumers for what
to expect after bankruptcy and shows them how to manage their
finances more proactively.
Can Expect After Bankruptcy
remains on their credit report for up to ten years. The consumer has
options for rebuilding their credit after bankruptcy. Several lenders
offer credit rebuilder loans that are helpful.
In Mississippi, bankruptcy provides assistance for anyone who is trapped in debt and needs serious help. The chapters include requirements such as credit counseling courses. Chapter 13 requires the claimant to enter into a structured payment plan, and chapter 7 requires the sale of some assets to settle debts. Consumers who want to start a bankruptcy claim can contact lawyers in Oxford MS or check out Northmississippilaw.com.