Some Southaven residents might assume that only those with relatively low incomes struggle with overwhelming debt. What is actually the case with personal debt, though, is that sometimes even a high income can't compete with staggering amounts of debt. Recently, a multi-millionaire from Columbus became involved in a Chapter 7 bankruptcy case in an ongoing dispute with his creditors.
Mississippians in need of debt relief have several legal options at their disposal. By taking the facts of their financial situation to a bankruptcy attorney, individuals can learn more about which route may be best for them. If personal bankruptcy is appropriate, debtors may be interested in learning more about Chapter 7 bankruptcy.
Commonly known as "straight bankruptcy" or liquidation bankruptcy, Chapter 7 bankruptcy is an option for many struggling with debt in Mississippi. Since many debts can be discharged under Chapter 7, many debtors will gravitate towards this option since repayment is not feasible. Still, it's important to know that not every type of debt can be discharged via Chapter 7 bankruptcy. As a result, those considering filing for this type of bankruptcy may wish to learn more.
Mississippi residents who are contemplating filing for Chapter 7 bankruptcy are likely to have limited financial means. Also known as asset liquidation, Chapter 7 is often an appropriate option for those who owe overwhelming amounts and have little realistic hope of making inroads on repayment of such debt. While Chapter 7 can be an effective solution to overwhelming debt, some Mississippi residents may worry that they cannot afford a bankruptcy attorney.
Next year, the Bankruptcy Abuse Prevention and Consumer Protection Act will turn ten years old. Over the past decade, the reforms brought forth by the act have changed the way many individuals, both nationwide and in Mississippi, file for Chapter 7 bankruptcy. Those intrigued by the benefits of Chapter 7, such as the elimination of certain debts, may wish to know more about the reform's key effect regarding eligibility.
The type of bankruptcy most individuals in Mississippi are likely to be familiar with, even if they have never declared bankruptcy themselves, is Chapter 7. Under Chapter 7 bankruptcy, many of a person's assets are liquidated to repay creditors. As a result, this type of bankruptcy is very attractive to those who struggle to cope with burdensome personal debt. On the other hand, some debtors may be hesitant to file since they worry about the credit-related drawbacks of this type of debt relief.