Will Inflation Affect The Cost To File Bankruptcy In Mississippi
With rising inflation in 2022, a question Ive heard is whether inflation will affect the cost of bankruptcy. Lets cover whether inflation may affect the filing fee and the attorney costs in Mississippi.
The Chapter 7 bankruptcy filing fee was updated from $335 to $338, and the Chapter 13 bankruptcy filing fee was updated from $310 to $313 effective . Based on the very slight change, I would not expect the filing fee to negatively impact you.
You may see some inflation in attorney fee costs as inflation may force bankruptcy attorneys to pay more to employees and face higher costs of living themselves in cities such as Gulfport or Southaven or across Mississippi.
How Much Does It Cost To File Bankruptcy
Are you currently in a financially undesirable situation? Do you have to know the cost of filing for bankruptcy because its your best bet? Youre…
by BOSS Editorial11:41 am
Are you currently in a financially undesirable situation? Do you have to know the cost of filing for bankruptcy because its your best bet? Youre not alone in this.
A lot of people are currently wondering how to afford bankruptcy since they can no longer keep up with their payment schedule. To solve this issue, weve intuitively created a free bankruptcy cost estimator to assist in a proper estimate of what itll cost you.
- A specific and detailed estimate of your bankruptcy expense as determined by your zip code/ city and according to the complexity of your case.
- The nitty-gritty involved in filing for a bankruptcy discharge.
Lets begin the discussion with your bankruptcy cost estimate after that, well describe everything that goes into the cost. There is also information on how you can secure bankruptcy consultation with the local attorney for freethat sure will be helpful to some.
Why Do Some Attorneys Charge Higher Chapter 7 Bankruptcy Fees
You may compare prices from two different bankruptcy attorneys in Gulfport, and find attorney costs vary between two attorneys.
The Chapter 13 bankruptcy attorneys often charge the same amount regardless in Southaven due to the no-look fee . That said, the Chapter 7 bankruptcy attorney fee can vary greatly, so it’s important to understand what you are getting for the additional cost.
The bankruptcy lawyer cost is often based on the following attributes:
For example, lets say you make $10,000 above the median income for Mississippi and still want to file a Chapter 7 bankruptcy. The attorney may then have to spend additional time looking over your expenses to see whether you would qualify for a Chapter 7 even though you are above the median. Additional attorney time generally means a higher overall bankruptcy cost.
If you are interested to learn more, please visit this article: Understanding Bankruptcy Lawyer Fees.
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What Does It Cost To File For Bankruptcy
The cost of bankruptcy varies significantly depending on the type, size and complexity of the case. Chapter 7 liquidation bankruptcies, which can erase many types of debt, may cost as little as the filing fee, if you dont use an attorney.
Chapter 13 bankruptcies, in which you cut a deal with creditors to pay them back over time, often require an attorney and may cost significantly more. Chapter 11 bankruptcies, commonly used by businesses, are the most expensive, with high court fees and typically much steeper legal costs.
Some bankruptcy fees are nearly inescapable. The federal courts that handle all bankruptcies charge standard fees, including administrative fees just for accepting the cases. Filers may pay other court fees as a case winds its way through the legal process, though courts can modify or waive some fees in cases of financial necessity.
Filers may also pay fees for professional helpfrom attorneys, accountants or appraisersbut these costs can be avoided in some cases. For instance, state legal aid societies and pro bono attorneys may provide assistance to low-income individuals.
Obviously, the cost of repaying creditors in Chapter 13 and Chapter 11 cases can be high, too. But while Chapter 7 bankruptcy calls for the filer to sell off assets to pay debts, nearly all Chapter 7 cases involve no assetsso there is no liquidation, and the filer pays nothing to creditors to discharge the debts.
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Understand Fixed And Variable Costs Of Filing Bankruptcy
In bankruptcy, there are fixed costs and variable costs. The fixed costs are the filing and administrative fees and the variable costs are the attorney fees. We will provide you with the fixed costs below and recommend you take the bankruptcy cost estimator to estimate the cost in your city.
Fixed Costs: Provided by the US Courts , the filing cost for a Chapter 7 bankruptcy is $338 and the filing cost for a Chapter 13 bankruptcy is $313
Variable Costs: The variable cost is based on the attorney fee. In our bankruptcy attorney fee article, we estimate the fee is based on 1) Type of Bankruptcy 2) Complexity of case 3) Your location 4) Level of attorney involvement 5) Bankruptcy experience and expertise.
Bankruptcy Attorney Fees Mississippi
A Chapter 7 Bankruptcy is often less expensive than Chapter 13 bankruptcy. Chapter 7 bankruptcy attorneys in Mississippi can cost between $1170 – $1500. The cost may increase or decrease based on the following factors: Complexity, location, level of attorney connection, and the bankruptcy lawyer’s expertise.
Here are some of the ranges of cost in major cities in Mississippi.
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Required Credit Counseling Costs
Before you can file for bankruptcy, you must take a court-approved credit counseling session. You’ll also have to take a financial management course. These courses usually come with a small fee from the provider.
Court costs are are typically less than $50. Fee waivers and reduced rates are available based on household income.
The U.S. Department of Justice website has a list of agencies approved in each state. Visit their websites to find the costs of their bankruptcy-required courses.
How Much Does It Cost To File For Bankruptcy
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Maybe youre filing for bankruptcy because youre having a hard time paying all of your debts, but unfortunately, the process isnt free. To file bankruptcy, you’ll have to pay court fees, credit counseling fees, and, most likely, attorney fees.
The amount of those fees depends on the type of bankruptcy you file and the attorney you choose. If you’re worried about how to pay to file for bankruptcy, learn more about how much it costs.
Bankruptcy Attorneys Serving Mississippi
The Oxford bankruptcy lawyers at Roberts Wilson, P.A. are passionate about helping people move forward with their lives. If you are facing the prospect of bankruptcy, you have come to the right place.
Our clients are our neighbors and community members. We take personal pride in helping people not only resolve their legal and financial issues but also recover their lives. From your first contact with our firm, we will manage your case with the highest levels of quality, professionalism, and compassion.
We are a Mississippi firm that insists on giving every client respect and personal attention. We have found time and again that unwavering dedication to our clients is a recipe for success.
If you need help with bankruptcy or want to discuss your rights and options, call Roberts Wilson, P.A. at today. We help people in Oxford, Holly Springs, Batesville, Pontotoc, Desoto & Tate counties, and other areas throughout Mississippi and beyond.
Ways To File For Bankruptcy
In order to file bankruptcy in Mississippi, the individual must go to the Mississippi Bankruptcy County Court. The filing process is not hard to accomplish. Any individual that is filing for bankruptcy under Chapter 13 will be paying off the loans they owe to the creditors. The processes might take close to three to five years to complete, but it is well worth it. Filing bankruptcy under Chapter 7 will be the quickest way of filing for bankruptcy as it takes about 40 to 45 business days. Both methods of bankruptcy are useful under different circumstances. Filing bankruptcy is a hard decision to make, but being under a load of debt can still ruin your credit rating.
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S In A Mississippi Bankruptcy
We all know that seeing the forest helps us recognize the trees, so it’s probably a good time to consider the significant steps you’ll take during your bankruptcy journey. Think of this checklist as a roadmap, but you can also use it to track your progress. The good news? You’ve already made headway on the first two items!
Print Your Bankruptcy Forms And Bring Them To Court
Once you have prepared your bankruptcy forms, you will need to print them out for the court.You must print them single-sided. The court wonât accept double-sided pages.
You will also need to sign the forms once they are printed.
Most bankruptcy courts require just 1 copy of the petition, but some courts like thebankruptcy court in Manhattanrequire 4 copies. So call your local bankruptcy court to find out how many copies you will need to bring.
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Common Myths About Filing Personal Bankruptcy In Mississippi
Many myths about bankruptcy exist that may deter those in extreme debt from following through with the filing process.
Both Chapter 7 and Chapter 13 bankruptcy are legal processes designed to help people regain financial freedom. According to the Federal Trade Commission, Chapter 7 bankruptcy involves selling nonexempt assets to pay back creditors while Chapter 13 bankruptcy involves using future income to pay off debts within a three to five-year period. Although both of these options are viable debt relief options for many people in Mississippi, some are hesitant to move forward with filing because of some of the myths that surround the bankruptcy process.
1. All debt can be discharged in bankruptcy
Many people decide to file bankruptcy with hope they will be able to obtain a fresh financial start. However, not every type of debt can be discharged during the bankruptcy process. For example, domestic support obligations, like child support and alimony, cannot be discharged. Additionally, restitution owed because of a crime committed cannot be removed by filing bankruptcy.
2. Only the financially irresponsible file bankruptcy
3. The bankruptcy process permanently ruins credit
4. Money spent right before filing can be absolved
Will Filing Bankruptcy In Mississippi Erase My Debts
Bankruptcy wipes out many bills, like , overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you’re willing to give up the house or car that secures the debt.
But you can’t discharge all debts. Nondischargeable debts, like domestic support arrearages and recent tax debt, won’t go away in bankruptcy, and student loans aren’t easy to wipe out . You’ll want to be sure that bankruptcy will discharge enough bills to make it worth your while.
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Chapter 7 Vs Chapter 13 Bankruptcy
There are two types of consumer bankruptcies you can choose between: Chapter 7 and Chapter 13.
Chapter 7 is known as a liquidation bankruptcy and is the faster option of the two. With Chapter 7, the bankruptcy court will eliminate your unsecured debts, but you have to allow a court-appointed trustee to liquidate your assets to pay back your creditors.
With Chapter 13, on the other hand, your debts are not immediately eliminated. Instead, they are reorganized into a 3-to-5-year repayment plan. Therefore, Chapter 13 allows you to pay off your debts over time without having to liquidate your assets.
Southern District Of Mississippi Requirements
The Southern District of Mississippi serves all the counties in the southern half of the state. Your case will be assigned to one of two geographical divisions based on your county of residence. The Southern District holds bankruptcy hearings in Gulfport, Hattiesburg, Jackson, and Natchez, but there are only bankruptcy clerks on staff at the Gulfport and Jackson locations.
If you live in Copiah, Hinds, Holmes, Issaquena, Kemper, Leake, Madison, Neshoba, Newton, Noxubee, Rankin, Scott, Sharkey, Warren, or Yazoo county, file your forms in the Jackson courthouse. If you live in any other county in the Southern District, file your forms in the Gulfport courthouse.
The Southern District of Mississippi has the following requirements:
Filing methods: You can file your bankruptcy forms in person or by mail. Check the courtâs COVID-19 page for any changes or temporary measures due to the ongoing pandemic.
Installment payments: If youâre paying your filing fee in installments, you must pay the entire fee within 120 days after you file your case. You arenât legally required to pay anything when you file your case. Like in the Northern District, though, itâs common practice to pay at least $1 when you file your forms.
Payment methods: You can pay your filing fee using a money order or cashierâs check.
Print Your Bankruptcy Forms
Print your completed bankruptcy forms with black ink on white, letter-size paper. Even though there are many pages, donât print double-sided. Printing single-sided allows the court staff to scan your forms into the courtâs electronic filing system.
If youâre filing with Upsolve, youâll receive all your completed forms in one PDF with dividers that flag each place you need to sign your name. If you downloaded the forms yourself, youâll need to print each form individually. This can get confusing, so use this checklist to make sure you donât forget anything. Sign your forms in every place your signature is required, using black or blue ink.
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Should I File Chapter 7 Or Chapter 13 Bankruptcy
To be clear, the question is not just which type of bankruptcy is appropriate to your situation. Its whether bankruptcy is the right move for you period.
Its a complicated process, and you should consider speaking to a to determine if theres another way to deal with your debt. Nonprofit consumer credit counseling organizations receive more favorable terms with creditors, and its possible that a debt management plan, debt consolidation loan or debt settlement could be a better solution. You can review your options for free by speaking to a credit counselor.
If bankruptcy is your best course of action, InCharge offers bankruptcy court-approved bankruptcy education courses through PersonalFinanceEducation.com.
Is Chapter 7 A Good Option For Low
Chapter 7 bankruptcy is the cheapest way to file bankruptcy because there are ways to reduce or waive costs. If someone has no tangible assets, their filing fee and/or bankruptcy court fee waived. If the case is obvious and simple, they could attempt to get through it without an attorney, thus saving that fee.
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Mississippi Bankruptcy Lawyer Cost
Most bankruptcy lawyers charge a flat fee to represent you in a Chapter 7 case. Attorney fees vary, but in Mississippi, fees range from $999 to $1,200 on average. A more complicated case is generally more expensive. Cost is the first factor many people consider when choosing a bankruptcy lawyer, but you should also consider other factors, such as the lawyerâs experience and availability.
Contact Your Local Legal Aid Society
Another option for cash-strapped consumers is to reach out to a local legal aid society. These groups can provide counseling, assist with filling out forms and help filers navigate their way through the process. If necessary, they also connect clients with qualified attorneys. Consumers may pay for the help on a sliding scale based on income.
File Your Forms With The Mississippi Bankruptcy Court
Only Mississippi bankruptcy lawyers have access to the stateâs electronic filing system. You can still file your printed, signed bankruptcy forms by taking them to the clerkâs office in person or by mailing them. If you mail your forms, be sure to include either your full filing fee or an application for a fee waiver or installment payments.
If youâre in a hurry to file bankruptcy to stop a wage garnishment or other creditor action, in-person filing is the fastest way to file your case. You may bring an extra copy of your forms with you. The clerk will stamp these with your filing date and case number, and you can keep them for your records. There may be changes to the ordinary filing procedures or temporary measures in place during the COVID-19 pandemic.