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How much income do you need to file for bankruptcy?

| Dec 15, 2020 | Chapter 13 Bankruptcy

If you’re struggling with debt in the state of Mississippi, you might have thought about filing for bankruptcy. Filing for Chapter 13 bankruptcy can help you pay off your debts and get your finances under control. However, Chapter 13 is only available for people who meet certain financial qualifications. Here’s what you need to know about filing for Chapter 13 in Mississippi.

What are the financial qualifications to file for Chapter 13?

To file for Chapter 13 bankruptcy, you must be able to prove that you can’t pay off your debts under your current financial situation. This involves offering extensive information about your current income. If your income is currently under the state median income, you’ll be eligible for a three-year repayment plan. On the other hand, if your current income is greater than the state median, you’ll be eligible for a five-year repayment plan.

Additionally, you’ll only be eligible for Chapter 13 if your secured and unsecured debts are under a certain dollar amount. With the help of a bankruptcy attorney, you can gather all the necessary forms and documents that you need to show the court. This might include information about your debts, proof of income, documentation of your assets and extensive information about your monthly living expenses. This provides a detailed picture of your current financial situation and shows the court that you need help to dig yourself out of debt.

Should you hire an attorney when filing for bankruptcy?

An attorney may help you navigate the complexities of filing for bankruptcy and figure out a repayment plan that works for your financial situation. Additionally, an attorney may help you gather extensive financial information to petition for Chapter 13 bankruptcy. When you hire an attorney, you might be able to get your bankruptcy approved and your debts paid off more quickly.