Are you no longer able to keep up with your bills? Does it feel like there’s no way out despite your best efforts to get things back on track?
When you believe you’re in over your head with a financial situation, it may be time to contemplate bankruptcy as the fresh start you need. It is important to realize that before filing for bankruptcy in Ridgeland, Mississippi, you’ll need to go through credit counseling no earlier than six months before filing.
Furthermore, you need to go through a financial instructional program after filing for bankruptcy. To identify whether or not you are eligible for Chapter 7 or Chapter 13 in Mississippi, you must complete the bankruptcy means test. This means looking at your average wages for the six months prior to filing and comparing it to the median income in Mississippi.
If your income falls under the median, then you can elect to file for Chapter 7, but if your income exceeds the median, then the remaining portions of this means test are applied to figure out whether you can file for Chapter 7 or if you need to file for Chapter 13.
You need to verify which property could be exempt from being taken based on the Mississippi exemptions. To actually file your petition, you must file several forms in a two-page petition at the Mississippi District Bankruptcy Court. These are known as the schedules and will ask you questions about your financial transactions and current financial situation. The cost for filing a Chapter 7 bankruptcy in Ridgeland, Mississippi is $360. Although the fee cannot be waived, it can be paid in installments. There is a $281 fee for filing Chapter 13 bankruptcy.
While Chapter 7 is a total liquidation bankruptcy, meaning that all of your non-exempted assets will be sold by the bankruptcy trustee to repay your creditors, Chapter 13 bankruptcy involves a suggested repayment plan. Priority claims are usually paid in full, and unsecured debts such as medical bills and credit card debts are paid in part over a three to five year repayment plan, suggested by you at the outset of the bankruptcy.
If you need help figuring out what’s best for you and the course of action to proceed, don’t waste any more time. Get help from an attorney who you can trust in Ridgeland.