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MISSISSIPPI BANKRUPTCY LAW
Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcy cases are always filed in the United States Bankruptcy Court, but cases depend heavily on state and local laws. It is up to your bankruptcy attorney to be aware of the federal, state and local laws and to guide you through the process.
If everything you try fails and the bill collectors are still coming after you, bankruptcy is an option you should learn about and consider. However, you need someone you can trust. Our Mississippi law firm has been handling bankruptcy cases since 1986. Don't believe all the myths and misinformation you hear about bankruptcy from your friends or the tv. We know what rights you have in a bankruptcy case and we can help you make the best decision for your situation.
Most people wait too long to seek help for their debts and end up in a more difficult position than they would have been. They ignore the red flags that are warning them of financial disaster. Some of these red flags include struggling to make your minimum payments, borrowing from one card to pay another, tapping your retirement accounts to pay your debts, getting behind on your rent or mortgage, threats of foreclosure or repossession, and constant debt collection calls and notices. Give us a call early on and get the facts and information you need to decide what is best for you. We give everyone a free consultation.
TYPES OF BANKRUPTCY
There are four basic types of bankruptcy:
Also known as straight bankruptcy, it is the fastest, easiest and least expensive kind of bankruptcy.
This reorganization is used primarily by businesses but also by people with unsecured debts higher than $360,475 or secured debts of more than $1.08 million.
This is for individuals with a regular source of income where we can structure a payment plan that allows them to keep all of their property. It is used heavily by people who are looking to save a home from foreclosure or a car from repossession.
The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13.
As much as 70% of all U.S. consumer bankruptcy filings are Chapter 7 cases.
HOW DOES IT AFFECT MY CREDIT?
Many Debtors are surprised when they learn it is possible to actually have a higher credit score within one year after completion of a bankruptcy than if they had not filed. The truth is that bankruptcy is a negative reflection on your credit; however it is not the only factor creditors use when making a lending decision. Some of the positive effects that you will experience upon completion of your bankruptcy are as follows:
1. First, all of your eligible unsecured debt will be discharged. Therefore your debt to income ratio will be much improved.
2. Second, the negative payment history that is being used against you when creditors make lending decisions will be gone, and the line items on your credit report will show “Discharged in Bankruptcy.” Everyday that you put between the discharge of your case and the rest of your life, will continue to improve your credit score.
3. Third, continuing to make payments on the secured debts that you have elected to keep, such as a house or car, will establish a positive payment history. Most of our clients experience the ability to purchase a new home or car within one year of their bankruptcy discharge. It is also common to receive credit card offers right after you are discharged. Much is made about the fact that the bankruptcy discharge will appear on your credit for up to ten years after your bankruptcy, but the fact that bankruptcy appears on your credit does not mean that you will not experience positive lending opportunities.
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