This is probably the most common question and for good reason. Most people don’t want to have to move, and reliable transportation is a must. In most cases the answer is yes. The ability to keep your house and car will be discussed further when we discuss the differences between Chapter 7 and Chapter 13 Bankruptcies.

Chapter 7, depending on your situation, may help you eliminate all your debt without having to repay any of it back to your debtors. Chapter 7 is generally best if you don’t have a large amount of assets, items like investments or equity in your home.

In Chapter 7 you can file jointly as husband and wife, or as husband or wife individually without the other.

There are Chapter 7 Exemptions and both federal and state laws provide exemptions for property that you are allowed to claim as exempt and are allowed to keep in a Chapter 7 bankruptcy. The different types vary from state to state.

In Mississippi you are permitted to have up to $75,000 in equity in your home. This is known as the Homestead exemption. You are also allowed to maintain and keep some tangible personal property such as: household items, clothing, books, cash and any tangible personal property as long as the cumulative value does not exceed $10,000 and $20,000 if a husband and wife both file. You can keep your house and car if you are under the $75,000 limit, are current on payments, and have the financial means to continue to make the monthly payments.

The other common exemption about which most people are concerned is retirement plans. The monies and assets held in 401K and other retirement plans are also exempt so long as it is held in a qualified plan
under Section 401(a), 403(a), or 403(b) of the Internal Revenue Code. During your consultation, you will be informed whether your retirement is qualified or not.

These are the most common exemptions in Mississippi, and we will help you utilize all available exemptions to assist you in keeping as much as property as legally possible.

There are also some debts which cannot be discharged if you file a Chapter 7 bankruptcy which means you will still be obligated to repay them. The most common types are student loan debts, some IRS and
State Income Taxes, Child Support or Alimony Obligations, Government Fines and Debts ordered to be paid by a Divorce Decree.

If you have a significant amount non-dischargeable debts a Chapter 13 may be a better option.

There is also a means test and basically it is designed to catch people who have sufficient income to repay the debts and truly don’t need the relief of a Chapter 7 bankruptcy. If you don’t meet or pass this means test you may still be eligible to file a Chapter 13 bankruptcy.

Chapter 13 is where your debts are consolidated, usually reduced, and then repaid to your creditors over a 3-5 year period. Chapter 13 bankruptcy forces your creditors to accept the repayment plan as set forth by the bankruptcy court. The repayment plan is supervised by the Bankruptcy Court and is also interest free.

The main requirement is that you have a steady source of monthly income, while also having the ability to repay a portion of the debt.

Filing a bankruptcy is a very personal decision and everyone’s circumstances are different. There are many factors which should be considered when making your decision.

Here are a few of the bigger things to consider:
• How much debt do you currently have?
• What is your ability to repay the debt?
• How long is it going to take you?
• Do you make enough money to cover your monthly bills plus repay the debt?

Here is a short list of reasons you might want to consider bankruptcy:
• If your mortgage company has filed foreclosure proceedings against you
• If your car is close to or has already been repossessed
• If you have large amounts of unsecured debts like credit cards or medical bills
• If collection agencies and creditors call are calling you
• If your wages are being garnished or bank accounts have been frozen
• If you don’t believe you will be able to repay all your debt over the next several years
• If your debt totals are not going down even though you are making payments
• If you are behind on payments more than 30 days
• If your creditors have filed collection lawsuits against you

This is just a partial list of reasons you might want to consider bankruptcy.
Bankruptcy can help you in many different circumstances, however bankruptcy is not right for everyone.

We will be able to assist you by providing you information based on your circumstances which will enable you to make an informed decision.

You can only file a Chapter 7 bankruptcy once every 8 years. If you are in need of financial relief, you may be eligible to file a Chapter 13 bankruptcy.

The meeting is conducted via telephone. This meeting in normally held about 30-45 days after we file your bankruptcy petition, and you must attend this meeting, or your case will not be discharged.

Your creditors may object to your bankruptcy. This 341 Meeting of the Creditors is where they would do so. As the name states, it is a meeting of the creditors however in most cases the creditors rarely appear due to the fact it would be a waste of time. Your creditors may still object to the bankruptcy even if they do not appear.

Your 341 hearing normally takes between 5-15 minutes depending on your bankruptcy. You will be asked to identify yourself by stating your name, social security number and current address. You must also provide the court with proper identification and your social security card. You then take an oath to tell the truth under penalty of perjury.

The trustee, whose job it is to represent your creditors, will ask you a series of questions to determine your eligibility for bankruptcy and see you have any other assets not protected by exemptions. The trustee will also ask you to verify some of your information.

We will inform you of the most commonly asked questions that may be asked. We will also be on the call with you!

Legally the collection calls are required to stop once your creditors are notified that you have filed bankruptcy. We can however help reduce and sometimes even eliminate the collection calls. Once you have retained us which means we have formed an attorney-client relationship by hiring me and giving me some form of acceptable payment you can now inform your creditors that you are filing bankruptcy and have hired an attorney. You can now direct all your collection calls to our office! This might not stop all collection calls however it should dramatically reduce them.

We can typically file your bankruptcy within a few days of our office receiving all the necessary paperwork and your final payment.

In Mississippi you are required to take two courses. The easiest way to take them is online however you may do a phone course.

The first is “Pre-Filing” Credit Counseling. This course is normally $25.00 and takes an hour to complete. You will need an estimate of your monthly income and expenses as well as your attorney’s email. Once you successfully complete this course you will receive a certificate of completion which must be provided to the bankruptcy court. If you include the law firms email address of info@buschinglawgroup.com, then the credit counseling company will email the certificate to the firm.

The second is a “Pre-Discharge” Debtor Education. This course is normally less than $10 and takes a few hours to complete. You will need your bankruptcy case number which was assigned by the bankruptcy court as well as your attorney’s email. Again, once you have successfully completed this course you will receive a certificate of completion which will be provided to the bankruptcy court. If you include the law firms email address of info@buschinglawgroup.com, then the credit counseling company will email the
certificate to the firm.

Your bankruptcy will not be discharged until both courses have been successfully completed! There are several online courses from which you can choose, and we can assist you with those options.

The first step you have already started, which is to educate yourself about bankruptcy. You want to then weigh the pros and cons of filing bankruptcy. We also recommend you don’t ask questions to individuals who are not qualified to provide you with correct legal advice. There is a lot of inaccurate information both on the internet as well as from friends and family, especially since bankruptcy laws change and everyone’s circumstances are different.

The next step in the process is to hire a qualified attorney to assist you through the bankruptcy process. We have successfully assisted many families through the bankruptcy process and know we’re confident we can do the same for you!

We will review all your information and decide which Chapter to file. We will provide you with all the necessary paperwork required to file bankruptcy.

Once you have completed the paperwork, we will then have another meeting to review the information and file your petition. How long it takes to be ready to file your petition will largely depend on you. It will depend on how quickly you decide if bankruptcy is right for you and how quickly you can fill out the paperwork and get the necessary documents. You must also take the first required credit counseling course and provide us a certificate of completion.

Once we have all the required paperwork and payment in full has been received, we will prepare the bankruptcy petition for your review. This typically takes at least twenty-four hours. Once you have
reviewed the petition, we then file the petition with the Mississippi Bankruptcy Court.

The next step is for you to take the second course, Pre-Discharge Debtor Education. Your 341 Meeting of the Creditors will then be scheduled about 30-45 days after we file the petition.

After the 341 Meeting, the last part of the process is to wait for your discharge papers. You should receive your discharge papers within 2-4 months after your 341 hearing. Once you receive your discharge papers all your creditors are prohibited from ever collecting on the debt or contacting you regarding any of your
debts which have been discharged through your bankruptcy filing.

This report should have given you a better understanding of bankruptcy and the bankruptcy process in Mississippi. Should you have any questions or need a qualified bankruptcy attorney to assist you on getting
through the bankruptcy process our office to schedule a meeting!