If you’ve found that you can longer control your debt, it may be time to file bankruptcy. Bankruptcy can provide financial alleviation to you and your family. Some don’t know that there are actually a few different types of bankruptcy that apply to business owners, farmers, or individuals. If you’re an individual seeking relief from your debts, chances are you’ll be filing for either Chapter 7 or Chapter 13. Jackson MS bankruptcy lawyers are professionals, and can assist you in determining which one you qualify for.
Chapter 7
If you make less than the average income for the area in which you live, you may qualify for Chapter 7. To determine your eligibility, you’ll have to pass a “means test”. To put it simply, all of your necessary expenses for each month are added up and subtracted from your monthly income. Your remaining income is multiplied by sixty to determine how much you could afford to pay to debt collectors for a period of five years. If you can afford to pay over $10,000, you’re rendered ineligible for Chapter 7, and you will be made to apply for Chapter 13 instead. Anything under $10,000 may mean you’re eligible, especially if your remaining monthly income after all monthly expenses have been deducted is less than $100.
Chapter 13
If don’t qualify for Chapter 7, chances are you’re eligible for Chapter 13. Under Chapter 13, all of your assets are protected from foreclosure; however, you’ll be required to pay a certain amount on some of your outstanding debts. The amount you’ll be responsible for depends directly on your income. A specified amount of time will be allotted to you during which you’ll make payments, and eventually a discharge from the debt will be issued. Once you’ve decided to file, Jackson MS bankruptcy lawyers can help you take the next step to financial freedom.
The Law Offices of Stover, Gadow & Tyler, PLLC have been providing legal assistance to residents of Mississippi since 1991. They have over four decades of experience in handling cases involving consumer protection laws.
