On Behalf of developers | October 30, 2018 | Chapter 7 Bankruptcy
Bankruptcy can be a scary concept for debtors in Mississippi. We at Pond Law Firm know that many people are afraid to file for bankruptcy for fear of losing everything or looking like a failure in the eyes of others. However, bankruptcy laws are there for your benefit. Bankruptcy is not a failure but an opportunity to wipe the slate clean and start over.
If you are facing lawsuits, harassed by creditors or having your wages garnished, Chapter 7 bankruptcy may be a solution. Filing Chapter 7 bankruptcy allows you to eliminate medical debt, credit card bills and other forms of unsecured debt. Chapter 7 wipes the slate clean by allowing for the immediate discharge of your debt.
According to FindLaw, filing Chapter 7 will require you to sell some of your possessions in order to meet your debt obligations. However, some property is exempt from bankruptcy, often including your home, your automobile and necessities of modern life. Bankruptcy law recognizes the fact that taking everything away from you would be counterproductive.
There are strict eligibility requirements you must meet in order to file for Chapter 7 bankruptcy. If your household income is less than the median income for a house of the same size, it means that you have passed the means test and you are eligible to file for Chapter 7. Failure of the means test does not mean that bankruptcy is not an option for you, however. Rather, it means that you must pursue Chapter 13 bankruptcy instead.
While many people have found it beneficial to file for Chapter 7, it is not the best solution for every situation. More information about Chapter 7 bankruptcy is available on our website.