If you file for Chapter 13 bankruptcy in Mississippi, you will have to undergo a process of documenting your income, debts, and ability to fulfill the terms of a repayment plan. This can take time and requires significant paperwork
To determine your qualifications for a Chapter 13 bankruptcy, you have to complete a test to determine the basic terms of your repayment plan. Form 122C-1 and Form 122C-2 are used to analyze your monthly income and determine if you can afford repayments to creditors. The length of your repayment plan is based on the amount of your household income, which is compared to the state’s median income. The state bankruptcy court reviews both forms to set the basis of your repayment plan.
After completing the test, you have to create a repayment plan. The first step is usually to list all of your personal assets and liabilities and calculate the total sums. Include daily living expenses and taxes. Chapter 13 requires that filers pay off their debts in regular, bi-monthly or monthly payments. You cannot submit more than one revised plan to a bankruptcy court, so it is important to be honest with yourself during plan development.
People who have made up their minds about Chapter 13 bankruptcy should have a strong understanding of their finances and living situation. These plans last either three or five years, so it is important to anticipate potential challenges and expenses. It’s important to review all of your options for preparing a plan successfully.