In Mississippi, bankruptcy offers a clear solution for consumers who are facing excessive debts. Consumers and businesses acquire either a structured payment plan or complete liquidation. At the end of their claim, it is possible for the consumer to become debt-free. A bankruptcy lawyer in Oxford MS explains situations and applicable laws.
How Does a Consumer Pass the Means Test?
The means test is used to determine if the claimant qualifies for bankruptcy. In chapter 7, the means test determines if the claimant has the means to pay off their debts. If their income is lower than the median for their household, the claimant qualifies for chapter 7. In chapter 13, the consumer’s income is higher than the median for their household to qualify.
Why is the Credit-Counseling Program Necessary?
Credit-counseling programs help consumers learn new ways of managing their finances and avoiding more financial hardships. All claimants who want to file for bankruptcy must complete a state-approved credit-counseling program. Some of the coursework explains what the consumer can expect during and after bankruptcy.
Can Claimants Get Extensions for Their Monthly Payment?
In most cases, no, the claimant must submit all monthly payments for their chapter 13 bankruptcy plan. However, dire circumstances could prevent them from paying, such as an accident with serious injuries. The claimant must contact the court and explain what has happened before they miss the scheduled payment.
How is the Automatic Stay Helpful?
An automatic stay is available through the full duration of the bankruptcy case. For chapter 7, it lasts a maximum of six months. In chapter 13, the automatic stay lasts between three and five years. During the automatic stay, creditors aren’t allowed to file a lawsuit against the consumer or try to collect a debt through the court.
In Mississippi, bankruptcy helps consumers and businesses eliminate debts quickly and repair their credit. The claims offer an automatic stay that protects the claimant against lawsuits and repossession. Foreclosures are also blocked once the bankruptcy starts. All claimants must pass the means test to qualify. Consumers and businesses that want to learn more about the claims contact us to speak to a bankruptcy lawyer in Oxford MS right now.