How to File Bankruptcy in Mississippi
Under Mississippi bankruptcy laws, individuals have the right to file their bankruptcy petitions as sole individuals or in joint petitions as husband and wife. Before a petition can be granted an individual will be evaluated. Personal income, household companions, living expenses, and personal debt will all be considered before a petition can be granted.
An individual’s income of one year will be calculated against the income of Mississippi’s residents’ income statewide. If a petition is approved, then officials will determine which kind of bankruptcy is best for the case. The amount an individual is eligible to pay on his or her debts can stipulate which bankruptcy is an option.
Those who can pay one hundred dollars a month but no more are eligible for Chapter Seven bankruptcy, which is for more severe bankruptcy cases. Those who can pay more than one hundred dollars but not one hundred sixty are usually assigned to Chapter Seven bankruptcy. Individuals who can pay one hundred sixty dollars or more a month on their current debts are eligible for Chapter Thirteen bankruptcy, which is for moderate bankruptcy cases.
Chapter Seven Bankruptcy
Chapter Seven bankruptcy allows individuals to liquidate portions of their property to be used to pay creditors. Because this process takes a maximum of six months, foreclosure can be stopped in a timely manner. A trustee will liquidate all the non-exempt property and use the compensation for paying the outstanding debts. Property that can be exempt includes motor vehicles, homes, business partnerships, and other forms of real estate. The property will be evaluated to determine the estimated value and sold for as high a price as possible.
Mississippi Property Exemptions
Each state has its own chart for bankruptcy exemptions. Mississippi’s includes nine different categories that are separated by value amounts. Mississippi exemption categories include, wild card, tools of trade, homestead, pensions, insurance, miscellaneous, public benefits, personal property, and wages. These exemptions are also classified by their equity and the remaining amount owed.
Despite having property exemptions, some debts themselves are not legal to eliminate. These include alimony, student loans, taxes, and child support payments. The equity of a property can be covered by exemptions if all the current payments are up to date, payments are made on time, and if the loan is secure.
If a property does not fall under one of the exemption categories and an individual desires to keep the property from liquidation, he or she is required to pay the property’s value to the trustee as if the property were to be otherwise sold. Mississippi citizens also have the right to choose federal exemptions over choosing Mississippi exemptions if they do desire.
Chapter Thirteen Bankruptcy
Chapter Thirteen bankruptcy creates a payment plan for each individual case upon evaluation of income and extraneous expenses. The payment plan will designate how much needs to be paid each month for all debts to be eliminated in a maximum of five years. In this kind of bankruptcy all debts will be relieved using an individual’s personal income.