Mississippi Bankruptcy Laws should be known by every resident of the state of Mississippi. It is not without risk when a person has excessive credit card accounts. The problem may start when the person starts missing payments, payment interests start to balloon out of proportion, and ends with credit companies hounding the debtor. There are various solutions to this, but the most common and easiest method for debtors is to file for bankruptcy protection. Mississippi bankruptcy laws have specified that it is the right of every citizen of the state to avail of bankruptcy protection.
To be eligible for bankruptcy protection, you must be a permanent resident of the state of Mississippi. You must have undergone the mandatory credit counseling program 6 months prior to the formal application of bankruptcy petition. Most of all, to increase your chances of successfully availing of the program hire a competent lawyer who has the license to operate in the state and has a specialty on bankruptcy laws. Hiring a lawyer is not a mandatory action it is up to you to make that decision.
Once you’ve made up your mind, the next step to do is choose the apt bankruptcy protection program that will suit your financial status and obligations. Most of the debtors settle for Chapter 7 bankruptcy because it holds certain appeal for those who want to liquidate all of their unsecured debts. The success of your application lies in the hands of the court trustee who will review your application and check that you are really in need of the government’s assistance. One of the bases of application approval is an annualized monthly income less than the state-specific median income level for the current year. This statistics is based on the US Census Bureau data you can see on its website. The debtor’s asset that can be subjected to liquidation may vary depending upon the trustee’s assessment. It is a good thing that Mississippi bankruptcy laws have specified exemptions or exempt assets that are protected from the creditors.
However, even if you are honest in your intentions in filing for bankruptcy and even if you have mounting credit card bills and monthly mortgages, this will not give sure passage into Chapter 7. An alternative to this bankruptcy program is Chapter 13. This type of bankruptcy is aptly suited for regular income earners who for some reason have failed to meet their monthly bills and debtors who have a lot of properties to lose. Instead of liquidating your non-exempt assets, a trustee is appointed to help you devise a repayment plan to pay all your debts in 5 years. An automatic stay is imposed by the bankruptcy courts to your creditors to prevent them from taking any action while the repayment period is ongoing.
If the court grants approval for your application, there are certain assets that can be shielded from liquidation. These are called exemptions and the state has specific exemptions to compensate for the meager ones offered by federal laws. Here is a list of some exemptions:
• Your home amounting to $75,000 and measuring up to $160 acres;
• $5,000 each for federal and state tax returns;
• 75% of a debtor’s wages;
• Personal property amounting to $10,000; and
• Other benefits like retirement benefits, insurance proceeds, and disability insurance.
Filing for bankruptcy should not be a spur-of-the-moment decision. There are more complexities involved in invoking bankruptcy protection that will surely have you second guessing your decision.