Final Thoughts And Considerations On Filing For Bankruptcy In Mississippi
As you can see, there a lot of information associated with successfully filing for bankruptcy and then exiting it unscathed or satisfied. Only a licensed bankruptcy attorney can guide you through this arduous process, particularly when it comes to complex cases. Be sure to hire someone you respect and trust.
How Chapter 7 Bankruptcy Works In Mississippi
For most people, the goal of Chapter 7 bankruptcy is to wipe out as much debt as possible. In legal terms, this is called having your debts discharged.
In exchange for your bankruptcy discharge, you must be willing to turn over any of your property that is not exempt under bankruptcy law. The bankruptcy trustee in charge of your case will liquidate the property to pay as much as possible to your creditors thats why Chapter 7 is often called liquidation bankruptcy.
This article covers:
- debts you owe under a divorce or separation agreement
- fines, penalties, or criminal restitution payments, and
- any debts related fraud youve committed or injuries youve caused.
In addition, you often cant discharge debts that are secured by a particular piece of property. For example, if you have a car loan, the lender may be able to repossess your car. If you have a home loan and cant show that your home is exempt under bankruptcy law, the lender may have the right to foreclose your mortgage.
Us Trustee Program Extends Telephonic Or Video Section 341 Meetings
The U.S. Trustee Program has extended the requirement that section 341 meetings be conducted by telephone or video appearance to all cases filed during the period of the Presidents Proclamation on Declaring a National Emergency Concerning the Novel Coronavirus Disease Outbreak issued March 13, 2020, and ending on the date that is 60 days after such declaration terminates. However, the U.S. Trustee may approve a request by a trustee in a particular case to continue the section 341 meeting to an in-person meeting in a manner that complies with local public health guidance, if the U.S. Trustee determines that an in-person examination of the debtor is required to ensure the completeness of the meeting or the protection of estate property. This policy may be revised at the discretion of the Director of the United States Trustee Program.
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What Is Mississippidebtrelieforg
MississippiDebtRelief.org is a free resource where residents may find help through free do-it-yourself tools. In addition, residents may request a free evaluation and savings analysis to find out which of their bills are eligible for assistance.
We’re here to help you. We’ve served over 100,000 Mississippi residents since 2009.
Help For Mississippi Residents
Account Resolution Plans are providing a vital lifeline for Mississippi residents who are struggling to keep up with minimum payments, those who have fallen behind, or those who are being forced to use credit cards or personal loans to take care of personal or business expenses.
ARPs are available across a wide range of income levels. No credit approval is required.
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Closing Of Your Bankruptcy
Personal
When you receive a discharge from the court or your bankruptcy case is closed:
- Youll receive post-bankruptcy letter with your remaining tax debt. Pay in full or contact us to set up a payment plan.
- Well start collection action
- You are still required to continue to file and pay your taxes
Business
When youre closing your bankruptcy:
Liquidation
The court appointed third party must:
- File a final tax return
- Pay the minimum tax for the following tax year, if applicable
- Close the bankruptcy within that same year
Reorganization plan
Once the plan is confirmed, you must follow the terms of the plan and continue to file and pay your taxes.
Liquidation plan
Once the plan is confirmed, you must follow the terms of the plan. Continue to file and pay your taxes. File a final tax return and close the bankruptcy within the same year.
Working With The Bankruptcy Trustee
When you file for bankruptcy, a person called a “Trustee” is appointed to your case.
It’s important to understand the role of the trustee and who he or she “works” for. Although the trustee is appointed by the court, the trustee’s job is to get as much property as possible to be sold and the proceeds distributed equitably to your your unsecured creditors, according to fixed rules established by law.
Almost all of your dealings with the bankruptcy court will be with the trustee assigned to your administering your case, not the bankruptcy judge, who is only there to rule on legal issues and issue your “discharge” order that officially cancels your debts upon completion of a successful filing — which is the ultimate goal of bankruptcy.
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How The Automatic Stay Stops Debt Collectors
After you file your bankruptcy petition with the court, an order called the “automatic stay” immediately stops most collection actions and civil lawsuits against you. The bankruptcy clerk notifies your creditors and, while the stay is in effect, they generally can’t call you, garnish your wages, repossess your property, or sue you.
That said, the automatic stay won’t stop certain legal actions against you, including:
- collection of child support or alimony
- repayment of loans from most retirement funds
- any criminal proceedings against you
- certain tax proceedings, or
- other actions or collections described in the U.S. bankruptcy code ).
In addition, the protection of the automatic stay may be shortened or denied altogether if you’ve filed for bankruptcy multiple times.
Finding A Lawyer In Mississippi
Individuals in the state of Mississippi that are filing for bankruptcy are going to need a bankruptcy lawyer to make sure everything is taken care of in the right way. Bankruptcy can be a bit tricky, so finding a bankruptcy lawyer is the best way of making sure it’s done right. Bankruptcy in Mississippi is easy to file through the court and you should have no problem finding a lawyer. Bankruptcy lawyers are easy to work with and will help out with anyone’s way of filing for a bankruptcy. The bankruptcy lawyer will decide what to file under based on your information. Bankruptcy will be on your credit for seven to 10 years, but after that if you have taken care of your credit then you will have an excellent credit rating.
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Dealing With Your Car
You probably rely on your car or truck to get to work and just generally live your life. This, of course, means that you are worried about how filing a Chapter 7 bankruptcy in Mississippi will affect your car and your car loan, if you have one. If you own your vehicle outright, then as long as it’s worth less than the available exemption, everything stays the same. If you do owe money on a car loan, then you can choose how to deal with it. If are stuck with the car before filing bankruptcy in Mississippi because you owe more on it than its worth, this is your opportunity to get out of it. If you like the car itself and have a way to raise money to pay for its value, a process called redemption gives you the opportunity to just buy it for what it’s worth. If that is not possible, you can surrender the car and walk away from it without having to worry about the balance left on the loan. On the other hand, if you are happy with your car, and the loan makes sense for you and is not a strain on your monthly budget, you can keep everything the way it was before your Mississippi bankruptcy was filed by entering into a reaffirmation agreement.
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 of sorts, but you can also use it to track your progress. The good news? You’ve already made headway on the first two items!
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Finding The Mississippi Homestead Exemption Statute
Mississippi’s homestead exemption is found in the Mississippi state statutes at Miss. Code Ann. § 85-3-1 and Miss. Code Ann. § 85-3-21. To learn how to find state statutes, check out Nolo’s Laws and Legal Research area.
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Can I File Chapter 7 For Unemployment
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Millions of people in the United States have been impacted by the financial consequences of the COVID-19 pandemic. Unemployment, the death of a family member, and incurring significant medical bills fighting the infection have caused individuals and families throughout the country to deal with a COVID-19 financial hardship. For some individuals, it might be time to consider Chapter 7 for COVID-19 money problems.
If you cannot pay your bills because of COVID-19 or other financial hardship, a Chapter 7 bankruptcy case could be the best way to get out of debt. This article gives you more detail about filing Chapter 7because of COVID-19.
Keep reading to learn more about:
- What Is a COVID-19 Chapter 7 Bankruptcy Case?
- Do I Qualify for Filing Under Chapter 7?
- What Should I Do If I Want to File a Chapter 7 Bankruptcy Case to Get Rid of COVID-19 Debt?
What Is a COVID-19 Chapter 7 Bankruptcy Case?
There are not different types of Chapter 7 for different situations. There is not a COVID-19 Chapter 7 case, nor is there a medical bankruptcy case. People file Chapter 7 to get rid of debts for many reasons. The most common reasons for filing Chapter 7 include:
- Unemployment or loss of income
- Sudden illness or accidental injuries
- Death of a family member
- Business debts or closing of a business
- Mismanagement of finances
- Overuse of credit cards and personal loans
Do I Qualify for Filing Under Chapter 7?
How Do I Qualify For Chapter 7?
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Secured Debt Vs Unsecured Debt: What’s The Difference
Secured debt. A secured debt is backed up by property — like your home or a car — which is also known as “collateral.” The creditor can take back the collateral if you don’t repay the debt.
Secured debt can be voluntary — for example, when you get a mortgage to buy real estate or a loan to buy a car. It can also be involuntary — say, if the government puts a lien on your property for back taxes.
Unsecured debt. Unsecured debt isn’t backed up by collateral. Lenders give you credit without “security,” relying on your credit history and your promise to repay. Unsecured debt can include everything from your credit cards to your gym membership, your medical bills to a loan from a friend.
In bankruptcy, unsecured debt is divided into priority and non-priority claims. If there’s any money available to pay your creditors, priority claims come first. Non-priority unsecured debts are rarely paid in bankruptcy.
Common priority unsecured debts include:
- legal fees related to the bankruptcy filing
- child support and alimony
- federal or state income taxes
- a certain amount of wages and benefits owed to employees, and
- claims against you for operating a vehicle under the influence of alcohol or drugs.
To learn more, see our articles on How to File for Bankruptcy.
Tax Return Filing Requirements
Although youve filed for bankruptcy, you still have to file your tax returns.
- Personal: You are still required to file personal income tax returns after filing for bankruptcy. Your bankruptcy representative may also be required to file estate fiduciary tax returns.
- Business: The business is still required to file tax returns after filing for bankruptcy. If the court appoints a trustee, the trustee will file the required tax returns.
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Northern District Of Mississippi Requirements
The Northern District of Mississippi makes up the northern half of the state and has hearing locations in Aberdeen, Oxford, and Greenville though, if you’re heading to court to file your Chapter 7 bankruptcy in Mississippi, you have to go to the Aberdeen location. The other locations are used for hearings in the district but don’t have any bankruptcy clerks staffed there permanently. The county you live in determines which division your case will be assigned to after filing.
Mandatory Debtor Education Debt Management Course
$0 to $75
As if you don’t have enough hoops to jump through, when you’ve completed all the other parts of your bankruptcy, you still don’t get that magic piece of paper called the “discharge” until you complete a course in debt management.
This is yet another requirement motivated by Congress’s frequently mistaken assumption that people who file for bankruptcy wouldn’t be broke if they weren’t so careless with their money. Chances are, you really are brokeand not because you’re irresponsibleso you should see if you qualify for free or reduced rates.
More Information
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Filing Without An Attorney
Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.
Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.
The following is a list of ways your lawyer can help you with your case.
- Advise you on whether to file a bankruptcy petition.
- Advise you under which chapter to file.
- Advise you on whether your debts can be discharged.
- Advise you on whether or not you will be able to keep your home, car, or other property after you file.
- Advise you of the tax consequences of filing.
- Advise you on whether you should continue to pay creditors.
- Explain bankruptcy law and procedures to you.
- Help you complete and file forms.
- Assist you with most aspects of your bankruptcy case.
Bankruptcy Forms are available to the public free of charge.
- Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples.
- Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company .
- Sole proprietors must use the forms that are numbered in the 100 series.
Frequently Asked Questions About Bankruptcy
Q: Which type of bankruptcy do I need?A: There are 2 types of Bankruptcy:
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is for individuals or businesses that no longer have the means to pay their debt. In a Chapter 7 bankruptcy, all unsecured debt is liquidated. Reasons to consider Chapter 7 bankruptcy include:
- It gives the debtor a fresh start
- The debtor keeps future income
- Collection efforts and wage garnishments stop immediately after filing
- There is no limit on the amount of debt the filer has
- In some situations, you are able to keep some or all property
- The process is relatively quick
- There is no repayment plan the debtor is no longer responsible for repayment of debt
- In certain situations, you can keep your house
Chapter 13 Bankruptcy
Chapter 13 bankruptcy reorganizes your debt, allowing you to catch up on your payments so you can possibly keep your home and car. If you have unsecured debt, such as credit cards, filing Chapter 13 can reduce the amount you have to pay back sometimes pennies on the dollar.Chapter 13 bankruptcy can be advantageous when:
Q: What information will I need to provide to file bankruptcy?A: Documents needed include:
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Mississippi Legal Aid Organizations
Mississippi legal aid organizations provide free legal assistance to folks who need a lawyer for their civil matter but cannot afford to hire one. If you are looking for free legal assistance with your Chapter 7 bankruptcy in Mississippi, you should start by looking at the Mississippi Bar . Their website includes information regarding organizations providing legal aid in Mississippi.
Info On Filing Without An Attorney
Information specific to your district
You’ll need information specifically about your particular court’s procedures.
Fortunately, the Mississippi Northern District Bankruptcy Court offers information specifically designed for people filing without an attorney. Virtually all courts link to the generic national information mentioned above. The Mississippi Northern District Bankruptcy Court offers specific guidance about local procedures.
General information about how to file
If you’re new to the bankruptcy process, the website of the US Courts Adminstrative Office now offers a basic orentation page for those filing bankruptcy without an attorney. The information inlcudes a Bankruptcy Basics video in EnglishSpanish and Creole. The half hour video is split into chapters so you can go back and review parts that went by too fast the first time.
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