How to File for Mississippi Bankruptcy

Categories: Money | Personal Finance | Bankruptcy | Financial Problems & Crises

  • If you're thinking about the pros and cons of filing for bankruptcy in Mississippi, you might just find it to be a suprisingly comforting solution to your financial hardship. Bankruptcy doesn't need to be thought of negatively, especially when you consider that filing for bankruptcy is intended to give people facing financial problems a clean slate. This page shows you how to file for Mississippi bankruptcy.

  • Disclaimer

    The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

  • Introduction

    Bankruptcy filings take place in federal court since bankruptcy falls under the domain of federal law in all states across the USA. However, Mississippi state law may still play a role at certain points along the way, especially when deciding what assets that you own are or are not protected from a forced sale or liquidation.

  • Step 1: What is Chapter 7 Bankruptcy?

    Chapter 7 bankruptcy is a legal procedure created to free a person from their unsecured debt obligations when they are facing oppressive financial challenges in the USA. However, it doesn't automatically free filing party of secured debt backed by collateral like car payments or mortgages. This form of bankruptcy, since it's faster and less complicated than Chapter 13 bankruptcy, is sometimes called a liquidation or straight bankruptcy. Understandably, many people feel they should be against the idea of filing for Chapter 7 due to what they've read about asset sales, but the liquidation of any personal or household items can frequently can be avoided if you pass the bankruptcy means test covered in the next step below. Even if you ultimately decide against a Chapter 7 filing, a Chapter 13 restructuring may still be a good fit for you.

  • Step 2: The Chapter 7 Income Test

    Passing the means test is required if you want to be eligible to claim Chapter 7 bankruptcy. To pass, you must prove that your total family income is equal to or less than Mississippi's state median. Though this median is calculated by the Census Bureau, it does vary depending on the size of your household. The following maximum incomes apply for cases filed after March 15, 2009http://research.lawyers.com/Mississippi/Bankruptcy-in-Mississippi.html:

    1. Single individual: $32,348
    2. Two person family: $41,934
    3. Three person family: $46,470
    4. Four person family: $55,759
    5. Five+ person family: $55,759 plus $6,900 for each extra individual over four

  • Step 3: Chapter 7 Exemptions for Mississippi

    When seriously considering claiming bankruptcy in Mississippi, it's very important that you consult with a bankruptcy attorney at your earliest convenience. They can help you work through which exemptions you will have a right to claim. Once you're sure that you will be allowed to declare chapter 7 bankruptcy after passing the means test, your attorney will formulate a strategy to keep as many of your assets as possible (and in a lot of cases all of them). Here are a just a few of the Mississippi exemptions allowed under the 2009/2010 guidelines:http://research.lawyers.com/Mississippi/Bankruptcy-in-Mississippi.html

    1. Homestead to 160 acres and $75,000
    2. Personal property to $10,000
    3. One mobile home, trailer, manufactured housing or similar type dwelling used as a primary residence to $30,000
    4. State tax refund to $5,000
    5. Federal tax refund to $5,000
    6. Proceeds from sale of homestead or insurance proceeds from homestead destruction to $75,000
    7. Personal injury judgment proceeds to $10,000
    8. $50,000 of any property, whether real, personal or mixed, tangible or intangible, including deposits of money, available to any Mississippi resident who is 70 years of age or older
    9. Old age assistance

Featured Pages

Contact Mahalo | Terms of Service | Privacy Policy | Advertisers | RSS for this page | CC License 2.0
©2007-2009 Mahalo.com Incorporated.
Powered By EdgeCast