Filing Chapter 13 in Mississippi

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If you need a fresh financial start, filing Chapter 13 may be the best option. With this chapter, instead of selling assets to pay back some creditors, you will make a payment plan to which your creditors agree, allowing you to gradually pay debts over a period of three to five years. This is usually a good choice for Mississippi residents who wish to keep the majority of their assets, as this is not possible when filing Chapter 7. Therefore, if you own a house, car and various other assets you do not want to lose, talk to a lawyer about filing Chapter 13.

Know the Facts before Filing Chapter 13

Your unsecured debts will not be discharged right away, unlike with Chapter 7. This is because your payment plan will be stretched over at least three years, and perhaps even five. The court usually decides the length of your Chapter 13 case, depending on the amount of extra income you have after paying your monthly expenses. The sooner you pay back your creditors, the sooner you can complete the case and rebuild your credit. Of course, you have to stay current on both your payment plan and the bills not included in the bankruptcy, which is why the Mississippi bankruptcy court may decide you need five years instead of three.

When to File Chapter 13 in Mississippi

If you are wondering about the advantages of filing Chapter 13 rather than Chapter 7, know that this chapter is best for those who do not want to lose their assets. The people who choose Chapter 13 tend to have a house and other major assets they wish to keep. If you are worried about losing certain items during bankruptcy, talk to a Mississippi lawyer to ask about your specific case details. Know that taxes, student loans and child support cannot be wiped out by Chapter 7 bankruptcy like most other debts can. You have to pay them back anyway, so if you have these debts, you might as well include them in your bankruptcy and have up to five years to repay them without penalty. If you file Chapter 7 instead, or do nothing to pay down these debts, you face wage garnishment, late fees and other severe consequences.

Talk to a Lawyer

If you are still considering filing Chapter 13 in Mississippi, you should find a local bankruptcy attorney. Most lawyers offer a free consultation you can use to decide if you should file bankruptcy at all, and if so, which chapter is best for you.

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