On Behalf of developers | December 19, 2024 | Bankruptcy,Blog,Chapter 7 Bankruptcy
Qualifying for Chapter 7 Bankruptcy in Mississippi
Chapter 7 bankruptcy enables businesses and individuals to discharge unsecured debts through liquidation of assets. It is a viable option that offers a fresh financial start if you’re facing high debts and do not see any other way out. Even if filing for bankruptcy seems to be the clear solution, how do you know for sure that filing Chapter 7 bankruptcy is the best option for you? The good news is that you do not have to make a decision and simply hope it’s the right one. With Pond Law Firm by your side, you’ll have all the information you need to make an informed decision, know exactly what to expect during the bankruptcy process in Mississippi, and have the time to explore all the benefits of filing for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is ideal for overwhelming credit card debt, medical bills, personal loans, utility bills, and so forth for individuals. For businesses, Chapter 7 can discharge business loans, payroll, utility bills, vendor debts, and other such business-related debts. In any case, certain debts cannot be discharged through Chapter 7, such as student loans, alimony, and child support.
Qualifying and filing for Chapter 7 requires several steps which Pond Law Firm can take care of from start to finish, ensuring that every requirement is accounted for and completed properly.
How much do you have to be in debt to file Chapter 7 in Mississippi?
There is no exact number that pushes you to file for Chapter 7 versus another form of bankruptcy. Rather than a dollar amount at which you qualify for Chapter 7, you have to pass a means test to be able to file for Chapter 7 in Mississippi. Passing the means test for Chapter 7 bankruptcy for individuals involves comparing your income to the median income in Mississippi for your same-sized household. If your income falls below the median, then you will likely qualify. If your income is higher than the median, you might still have a chance of qualifying for Chapter 7 if you have allowable expenses and high debts. Similarly, there is a means test for businesses filing for Chapter 7 bankruptcy in Mississippi in order to qualify.
Another criterion that you have to meet to qualify is to have lived in Mississippi for at least 91 days of the last 180 days before filing. Businesses need to have operated regularly in Mississippi to meet the time criteria. If you have filed for bankruptcy before, there are time restrictions before you are able to apply again. Lastly, you must be transparent with the courts about your financial background, showing all assets, income, debts, and expenses. If you are a business filing for Chapter 7, you have to show that you are no longer operating and are dissolving the business rather than selling it.
For the best support in navigating the Chapter 7 bankruptcy process in Mississippi, call on the experienced knowledge of Pond Law Firm. Our skilled bankruptcy lawyers will guide you through every stage of the process and ensure that your interests are protected. Call today for a free consultation!