Jackson Mississippi Bankruptcy Law Blog

Are you one of the many residents in Mississippi who are facing serious levels of debt that you can no longer effectively manage on your own? If so, you may have given thought to filing for bankruptcy. While certainly a personal bankruptcy may offer you the chance to get back on your financial feet, it is important that you effectively evaluate your bankruptcy options so as to choose the right type of plan that meets your needs.

360 Degrees of Financial Literacy explains that there are essential differences between the two most common types of consumer bankruptcy. Chapter 7 plans are known for the potential loss of assets as those belongings backed by collateral such as cars or homes may be taken and sold in order to repay money owed to creditors. This does not happen in a Chapter 13 plan. Instead, a Chapter 13 plan is basically a form of debt consolidation that allows people to simplify their repayment and even to lower the amount they pay without losing assets.

Surgeries often come with a variety of complications, including challenging physical therapy and alternative, doctor-ordered regimens. Yet millions of Americans also face medical debt post-surgery -- debt that can linger for years after a medical procedure. This type of financial predicament is no stranger to the state of Mississippi, which is known for having the highest medical debt in the country. While reasons why so many in the state are affected by overdue bills are complex, some experts point to limited insurance coverage and the debt that ultimately affects hospitals.   

An article in The Atlantic highlights the growing issue of medical debt in America, and how the South is especially affected by the prevalence of unpaid medical bills. According to article, nearly one in four American adults under the age of 65 lives with medical debt. Furthermore, 37 percent of Mississippians aged 18 to 64 carry medical debt. The Atlantic also points out that not all states expanded Medicaid under the Affordable Care Act of 2010, which could account for the alarming number of Mississippi residents living with debt. Another reason for crippling debt in this region could be high deductibles and co-pays, balance billing or simply that some services are not included in insurance plans.

Filing for bankruptcy is a major life decision, and one that doesn't come easy. The burden of financial stress can be overbearing and a lot to overcome. You've heard there are certain benefits to bankruptcy, but fear the negative impact it could have on your financial future.

Like most people considering bankruptcy, you probably have a lot of questions about how it will improve your financial situation, what the drawbacks are, and the difference between Chapter 7 and Chapter 13. Continue reading for answers to some of the most frequently asked bankruptcy questions.

Medical debt can hurt almost as much as the condition causing it. As many as 43 million Americans have a medical bill in collections that has negatively affected their credit, according to the Consumer Financial Protection Bureau. The average amount in question was only $579, compared to $1,000 for non-medical debt. Even with the relatively low amounts at issue, the CFPB found that, for 15 million people, that medical debt was the only problem on their credit report.

"More people who typically would have been a good credit risk are now saddled with big bills," commented the policy director at the Healthcare Financial Management Association.