Bankruptcy Lawyer in Gulfport, MS

Take Control of Your Finances and Your Life When You File Bankruptcy

You can choose the kind of bankruptcy that best meets your needs (provided you meet certain qualifications):

AUTOMATIC STAY - How does it work?

When individuals or couples file for bankruptcy protection, the Bankruptcy Court issues an Order known as the Automatic Stay. The Automatic Stay is a powerful tool for Mississippians that are facing foreclosure, wage garnishment, repossession of vehicles or other property and harassing collection calls from creditors. Most people have heard of a restraining order or have watched a movie or television program where a restraining order was discussed. Unlike a restraining order, where you must go to court and ask a judge for the restraining order to be issued, when you file for bankruptcy protection, the Bankruptcy Court immediately issues the restraining order (known as the automatic stay) which stops debt collections, wage garnishments, repossession efforts and foreclosure proceedings.

Chapter 7 Bankruptcy is often referred to as a "straight" bankruptcy or a "liquidation". In a Chapter 7 Bankruptcy, most of the debtor's property or assets are protected by law.  - A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. In Mississippi, very few debtors in Chapter 7 are required to turn over any property to the trustee. On secured debts, the debtor either reaffirms the debt (continues to make payments), surrenders the property back to the creditor, or redeems the property (making a lump sum payment equivalent to the value of the merchandise). 

If you, or you and your spouse, make too much money, you may be required to file a Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy is often referred to as a "wage earner plan" or a "debt repayment plan". 

In Chapter 13 Bankruptcy, the debtor files a “Chapter 13 Plan” with the bankruptcy court agreeing to make the best effort to pay off as much debt as possible over a three to five year period of time. The plan will classify debts in different categories such as secured and unsecured debts. Some debts, such as taxes and secured debts may be paid in full while others may only be paid a portion of the amount owed. In some chapter 13 cases, only secured debt and tax debt is paid and unsecured debt is not paid at all. Upon completion of the chapter 13 plan, the debtor’s obligation to pay most of the debt that is not paid is discharged or wiped out.

The debtor makes a monthly payment to a bankruptcy trustee determined by several factors:

• What secured loans must be paid to retain automobiles and/or other collateral.
• If the loan was made to purchase the auto or other collateral, then the age of the loan is a factor that will affect the amount that has to be paid. If he loan is 910 days old or less, the loan has to be paid in full plus interest. If it is more than 910 days old, then the value can be paid with interest and the remaining portion is treated like all other unsecured debt.
• What taxes must be paid in full (this depends upon the type of taxes and the age of the tax debt).
• What are the debtor’s income and expense. In other words, how much can the debtor afford to pay?
• What interest rate must be used on the secured loans (this may vary depending up the status of the secured loan).

In most cases, we are able to reduce the payment to an amount that our clients can afford and our clients can keep their home, autos and other items. In some cases, the liens on certain types of collateral can be avoided, which means that the debtor can keep or retain the collateral without paying the secured loan.
 

Most unsecured debts remaining at the end of the case are discharged. Some of the exceptions are the remaining portion owed on governmentally insured student loans, child support and alimony, certain debts which were obtained by fraud and a few others will not be discharged in some cases.