On Behalf of developers | April 2, 2024 | Bankruptcy,Blog
Pond Law Firm is all about assisting our fellow Mississippi residents in times of financial hardship. We are here to help you work through the process of bankruptcy and pave the pathway to the fresh financial start you deserve. Knowing what to expect when filing for bankruptcy in Mississippi is a great place to start and we’re here to share more about the bankruptcy process in our great Magnolia state.
Evaluate Your Financial Situation
It’s important to consider all your financial factors to determine if bankruptcy is the right course of action or if there are appropriate alternatives. This entails gathering and assessing information about your assets and income versus your expenses and debts. At this point, it would be a wise idea to consult a local Mississippi bankruptcy lawyer who is well-versed in filing for bankruptcy in Mississippi to help you make an informed decision. The added benefit is that if you do decide to file, your lawyer will oversee the entire process, ensuring that you’re doing everything correctly.
Credit Counseling
If you decide to file for bankruptcy, regulations state that you must complete a credit counseling course 180 days prior to filing a bankruptcy petition. This must be offered by an approved agency and the certification of completion must be submitted with your bankruptcy petition.
Select the Right Bankruptcy Chapter
There are various Chapters of bankruptcy for which you may qualify. Consulting your bankruptcy attorney is your best bet for determining which is the most appropriate for your particular situation. Chapter 7 bankruptcy is the liquidation option which allows you to discharge your unsecured debts and has allowances for some assets to be sold to repay creditors. Qualification is based upon your results of a means test which compares your income to Mississippi’s median income for your same household size. Chapter 13 bankruptcy is available to those who have a steady income and assets with which to repay debts over a 3-5 year period of time. A repayment plan is created and you are responsible for paying it to catch up on missed payments and take care of unresolved debt. Chapter 11 is available for those who can reorganize debt while continuing to operate, so this typically is utilized by businesses.
Financial Document Collection
The next step is to gather all your financial documentation such as bank statements, tax returns, paystubs, loan documents, titles, deeds, etc. for your assets and income. Putting together all your financial documents can prove a daunting task and having a lawyer to assist you can be incredibly helpful.
File Your Bankruptcy Petition in Mississippi
You will need to file your bankruptcy claim with the U.S. Bankruptcy Court for the Southern District of Mississippi or the Northern District of Mississippi, depending on the county in which you reside.
Meeting of Creditors (341 Meeting)
This is a meeting where you will respond to questions about your financial affairs under oath. Having legal representation to help you prepare for this and for the meeting itself can better prepare you for this process.
Financial Management Course
For particular bankruptcy Chapters, you’ll be required to complete a financial management course to learn more about money management strategies such as budgeting, cash flow, credit card and loan applications, and how to avoid overwhelming debt. This must be offered by an approved provider.
Resolve Your Debts
Once you have successfully completed all previous steps, you will be able to receive a discharge of your debts. For Chapter 13, you will then need to complete your repayment plan. From here, a good local bankruptcy law firm will continue to provide financial advice, guidance, and support to ensure your fresh start stays on track.
For legal guidance and representation in bankruptcy petitions in Jackson, Mississippi, and surrounding areas, contact Pond Law Firm today. We’re here to provide the support you deserve!