Bankruptcy in Gulfport, MS

Financial instability can strike unexpectedly in cities like Gulfport. Though viewed with apprehension, bankruptcy can be a viable pathway to a fresh financial start.

Imagine regaining control of your financial life with the help of a local bankruptcy attorney. They may even identify ways to keep your most valuable or valued property.

Reading this guide is the first step to not allowing debt to define your life. Discover how to empower yourself to take the first steps toward financial freedom today.

Types of Bankruptcy in Gulfport, Mississippi

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Gulfport, MS to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Bankruptcy cases from Gulfport typically go through the U.S. Bankruptcy Court for the Southern District of Mississippi. This federal judiciary handles all bankruptcy proceedings for locals.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Gulfport  who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

While Chapter 7 bankruptcy offers a quick discharge of unsecured debts, it is not always the best option. Other types of bankruptcy, like Chapter 13 or Chapter 11, might be more suitable for Gulfport residents. For instance, Chapter 13 bankruptcy is ideal for individuals with a regular income who wish to keep their assets. It allows for a reorganization of debts and a manageable repayment plan.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

Filing for Chapter 11 bankruptcy involves a detailed and complex series of forms with strict requirements. Initially, you must submit a petition to the bankruptcy court. The supporting documents for a case from Gulfport include:

• Schedules of assets and liabilities
• A schedule of current income and expenditures
• A statement of financial affairs
• A schedule of contracts and unexpired leases.
• Tax returns
• Proof of credit counseling
• A detailed list of all creditors and the nature of their claims

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Gulfport, MS after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

Filing for Chapter 13 bankruptcy also begins with filing a petition with a federal bankruptcy court. Along with this petition, you must submit several forms, as mentioned above. Crucially, filers from Gulfport must also provide a proposed repayment plan. This plan is subject to court approval and must demonstrate feasible, regular payments.

The Bankruptcy Process in Gulfport, Mississippi

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.

In Gulfport to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.

A trustee will receive an appointment to oversee the case, and they hold a meeting of creditors. They answer questions about your financial situation and updates about the next steps. Depending on the chapter filed, the process then goes to liquidation or adhering to a repayment plan. The process concludes with a discharge of debts, subject to certain exceptions.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Gulfport, Mississippi Lawyer

Hiring a local bankruptcy lawyer in Gulfport during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Mississippi attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Gulfport can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Mississippi state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!