It’s very important that a person who lives in Mississippi talk to a bankruptcy lawyer as soon as they start to have trouble paying their monthly bills. That gives one of the Bankruptcy Lawyers Jackson MS the best possible chance at preserving as much of their wealth and assets as he can. Sometimes having a car repossessed is the first concrete signal that something is very wrong with a person’s finances. If the car owner meets with a lawyer, the lawyer can get the car back by filing for bankruptcy within 10 days.
If the person’s annual income is less than the average income for their community, then they can file for a Chapter 7 bankruptcy. All property that isn’t protected will be sold. The funds from those sales will be given to the creditors. The bankruptcy trustee is in charge of holding the sale or auction. His job is to get as much money as possible for the creditors. It is not to help the debtor. That’s why it’s important for the debtor to have their own legal counsel. The lawyer will make sure that the trustee does not take more than what he is entitled to. Each state as a list of exempt properties, which cannot be sold.
If the person makes more than the average income, they will have to file for bankruptcy under Chapter 13. This is more of a repayment plan. The bankruptcy trustee looks at the debtor’s current expenses and income. They then draw up an expense plan that the debtor has to adhere to with respect to housing, food and clothing. This is really a bare bones lifestyle. But if the debtor is current with their mortgage and car payment, they are allowed to keep these. They are included in the debtors allowed monthly budget. Everything else goes to the creditors to pay off the bills. This process can last up to five years. The bankruptcy is not discharged until the final payment has been made.
Bankruptcy does not erase tax debt. If this is a problem, then the Bankruptcy Lawyers Jackson MS practice will have to do additional work with the IRS to get them to take a smaller payment or to accept a practical and affordable payment plan. It also does not eliminate student debt or child support.