Mississippi Bankruptcy Lawyer and Attorney
As Mississippi Bankruptcy Attorneys, we can help people and businesses file for Bankruptcy under Chapters 7, 11 and 13. At the Law Offices of Attorney John R. Reeves, P.C. we can help individuals and businesses eliminate debt through Personal Bankruptcy or Business Bankruptcy. Filing for Bankruptcy may be a viable option for relief from credit card debt, foreclosure, repossession, IRS tax problems, a lawsuit, and many other areas. Filing for Bankruptcy may help you to regain control of your finances and allow you to “get on with your life”. The Law Offices of John R. Reeves, P.C., also advises people in business of what action can be taken if they hold a debt and the debtor has filed for bankruptcy.
Get Relief From Creditors Now
- Stop Harassing Phone Calls
- Stop Collection Letters
- Stop Lawsuits
- Stop Wage Garnishments
- Stop Bank Attachments
- Stop Evictions, Foreclosures and Repossessions
- Save Your House and Business
- Eliminate all Dischargeable Debt
- Wipe-out all Dischargeable IRS and State Taxes
Bankruptcy laws give protection to struggling individuals and offer organized payments to creditors by way of liquidation or reorganization. Such methods are covered under Title 11 of the United States Bankruptcy Code. Generally, your bankruptcy case begins when you file a voluntary petition. Most personal bankruptcy cases are filed under Chapter 13 and Chapter 7 of the Bankruptcy Code. Bankruptcy cases cannot be filed in the State Court, they must be filed in United States Bankruptcy Court. Most case details and specifics concerning exemptions and the validity of claims depend on State Law. Since state bankruptcy law plays a major role in bankruptcy filings it is usually difficult to generalize bankruptcy law across state lines. Two of the most frequently used bankruptcy procedures are Chapter 13 Bankruptcy (restructuring of the debt) or Chapter 7 Bankruptcy (discharge of the debt).
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is also referred to as “liquidation bankruptcy” or “straight bankruptcy“. This type of bankruptcy is usually a fast process that is intended to discharge common unsecured debts such as medical bills and credit card debts. Chapter 7 Bankruptcy accounts for almost 70% or so of all U.S. consumer bankruptcy cases. More Info
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, you maintain possession and ownership of all your assets, however you must file and submit a repayment plan to pay all or part of your debts over time. How much you pay and the time period of your repayment plan will depend upon many factors such as your income and expenses as well as the value of your property. More Info
Bankruptcy and Foreclosures
Numerous individuals want bankruptcy protection so they can delay or totally avoid a foreclosure on their home. When a homeowner falls behind on their mortgage payments, a foreclosure process starts. A lender will then issue an official demand for payment which is called a Notice of Default. The final outcome is when your rights as a homeowner are terminated and the dwelling becomes the absolute property of the lender. If you have run out of options and are unable to negotiate with the lender then bankruptcy could help you in slowing down the foreclosure or even avoid it totally. When you file for bankruptcy this will trigger an “automatic stay” which will halt actions by the creditors who are attempting to collect or foreclose. This course of action becomes temporary if you do not continue to honor payments which in turn, will cause the foreclosure process to resume. However, you may find that by getting rid of other debts, you create enough cushion in your budget that enables you to fulfill your mortgage payments. With regard to Chapter 7 Bankruptcy, the automatic stay will last provided that the property is not abandoned by the trustee who considers it exempt or as valueless to the estate, or until your case is closed.
Bankruptcy and Medical Debt
Many people think the majority of personal bankruptcies are due to job loss and credit card debt, however the most common cause of personal bankruptcy among Americans is medical debt. According to the American Journal of Medicine, health care costs account for more than 60% of bankruptcy filings. Today, many people struggle financially with the burden of expensive and many times long-term costs of medical expenses. Injuries and illness can even put a financial strain on you regardless of whether you have health insurance or not. Out of pocket costs due to high deductibles, high co-payments, exclusions from coverage or other loopholes as well as loss of income from taking off work can all contribute to financial pressure. Bankruptcy is a viable option to consider if you are struggling with hospital charges, doctor bills, and other medical debt. Medical bills can be significantly reduced or even eliminated entirely according to the kind of bankruptcy you decide to file. Filing for Chapter 7 Bankruptcy will eliminate all unsecured debt including medical bills. Once you have filed for bankruptcy you can’t file again for six years. Therefore, if you were to take sick in that six year period, you could be more susceptible to future delinquent medical debts. Chapter 13 another feasible option for filing bankruptcy as a result of medical debt. It will enable you to consolidate your debts into a repayment plan allowing you to repay your medical debt over a period of 3 to 5 years. While repaying your debts, you are able to retain your property. If you have a stable income then a Chapter 13 Bankruptcy is a possible option since it give you the extra time and flexibility necessary to address the financial pressure of your medical condition. The rising cost of health care has become one of the most stressful financial burdens for people in America and presents a growing problem for several households. Bankruptcy may offer you a viable solution if you are experiencing these very issues. If you are considering personal bankruptcy, contact us to speak with a Bankruptcy Lawyer and Attorney.
Bankruptcy and Student Loans
Student borrowing is at an all time high and heavy debt loads are plaguing many young Americans. According to the U.S. Department of Education, federal student loans increased 25% from 2008 to 2009. Roughly two-thirds of college students in America take out student loans to pay for tuition with the average student graduating with more than $23,000 in debt. An entire generation of young Americans will face many ramifications concerning student loan debt. Many young adults entering the job market today deal with scarce employment opportunities due to our declining economy. Young graduates face a weak labor market and usually are the first to be laid off in difficult times. With the addition of student loan debt this all adds up to be a heavy burden and hard struggle for young Americans to keep their head above water. Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, federal student loan debt can no longer be written off. The only exception to this is if the borrower can establish that the debt is an “undue hardship” on your situation. This is usually possible if you are facing indefinite job-loss and unemployment as a result of being permanently disabled. It is very hard and quite rare to get a student loan debt discharged under “undue hardship” in a bankruptcy.
Bankruptcy and Your Credit
Damaging your credit score is one of the main concerns when people are thinking about bankruptcy. Many people fear, that after filing bankruptcy, that they will hurt their ability to borrow money in the future. Discharging your debts in bankruptcy will damage your credit score, however it will also put you in a better position to rebuild your credit score favorably over time. The speed at which you rebuild your credit will naturally be dependent on several different factors. When you file for bankruptcy, the most obvious thing that occurs is that your credit report and your credit score suffer. Exactly how negatively it takes a hit relies on how good your score was before you filed for bankruptcy and the number of accounts that were included in your bankruptcy case. Factors such as your financial obligations and your income can have an affect as well. For example, if you keep your house and continue to make the mortgage payments on time, then your credit score will generally improve. Bankruptcy generally shows up on your credit report for up to 10 years after your bankruptcy case was filed.
Bankruptcy can erase most debt but not all debt:
|Debts You Can Erase||Debts You Can’t Erase|
|Medical Debts||Some Tax Debts|
|Credit Card Debts||Criminal Debts|
|Utility Debts||Student Loans|
|Payday Loans||Child Support|
|Failed Business Debt (Unsecured)||Alimony|
|Broken Lease Debts||Debts Created Through Fraud|
Please contact us to arrange for a confidential consultation with a Mississippi Bankruptcy Lawyer and Attorney.