Which Option Is Right for You?

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If you’re considering bankruptcy in Mississippi, one of the most important decisions is choosing between Chapter 7 and Chapter 13 bankruptcy. Each option offers powerful debt relief—but the right choice depends on your income, assets, and financial goals.

 

At Ash Law Firm, we help clients across all of Mississippi understand their options and choose the path that gives them the best chance at a fresh start.

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If you’re searching for the difference between Chapter 7 and Chapter 13 bankruptcy in Mississippi, this page explains which option may be right for you.

 

Quick Comparison: Chapter 7 vs. Chapter 13

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Feature                            Chapter 7 Bankruptcy                              Chapter 13 Bankruptcy

 

 

Timeframe                      3–4 months                                                 3–5 years

 

Debt Relief                      Eliminates most unsecured debt           Repays portion of debt

 

Income Requirement    Must pass means test                              Requires regular income

 

Property                          May involve liquidation (rare)                   Keep your property

 

Best For                           Fast debt relief                                           Catching up on payments

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What Is Chapter 7 Bankruptcy?

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Chapter 7 bankruptcy allows you to eliminate most unsecured debts quickly and get a fresh financial start.

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It is often the best option if you:

• Have mostly credit card or medical debt

• Have limited income or disposable income

• Want fast relief from collections

• Qualify under the means test

 

Most Chapter 7 cases in Mississippi are completed in just a few months, and many people keep all of their property due to exemption laws.

 

What Is Chapter 13 Bankruptcy?

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Chapter 13 bankruptcy creates a structured repayment plan that allows you to catch up on debts while keeping your assets.

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It is often the best option if you:

• Are behind on mortgage or car payments

• Want to stop foreclosure

• Have a steady income

• Do not qualify for Chapter 7

 

Chapter 13 allows you to repay debts over 3 to 5 years while protecting your home and other important assets.

 

Key Differences Between Chapter 7 and Chapter 13

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Speed vs. Structure

• Chapter 7 is fast and eliminates debt quickly

• Chapter 13 takes longer but provides structured repayment

 

Asset Protection

• Chapter 7 may involve asset review, but most people keep everything

• Chapter 13 is designed to help you keep your property

 

Income Requirements

• Chapter 7 requires passing the means test

• Chapter 13 requires a regular income to support a repayment plan

 

Which Bankruptcy Is Better for You?

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The best option depends on your specific situation.

• Choose Chapter 7 if you want fast debt relief and qualify

• Choose Chapter 13 if you need to protect your home or catch up on payments

 

At Ash Law Firm, we evaluate your finances and recommend the strategy that best protects your future.

 

Can Bankruptcy Stop Foreclosure or Garnishment?

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Yes. Both Chapter 7 and Chapter 13 can stop collection actions immediately.

 

Filing bankruptcy triggers an automatic stay, which:

• Stops foreclosure

• Stops wage garnishment

• Stops lawsuits and collection calls

 

Chapter 13 is typically the better option if you want to keep your home and catch up on missed payments.

 

Why Choose Ash Law Firm?

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At Ash Law Firm, we provide clear, practical guidance for clients across Mississippi:

• Personalized bankruptcy strategies

• Honest recommendations based on your goals

• Fast action to stop collections

• Deep knowledge of Mississippi bankruptcy law

 

We help you make the right decision so you can move forward with confidence.

 

Speak with a Mississippi Bankruptcy Lawyer

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If you’re unsure whether Chapter 7 or Chapter 13 is right for you, you don’t have to guess.

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Contact Ash Law Firm today at 601-981-5600 to get clear answers about your options.