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.
Choosing a Bankruptcy Chapter
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.
Reviewing the 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 years.
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.
Preliminary 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.
What Consumers Can Expect After Bankruptcy
The 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 website domain.
