Financial hardships are never easy to go through. With the state of economy, more and more people are losing jobs and finding it difficult to pay off their debts. While it’s always recommended to try and pay off debts, sometimes the only option is bankruptcy. Those considering bankruptcy should contact Bankruptcy Lawyers in Jackson, MS. Their knowledge can make all the difference in understanding how the process will affect debts and a client’s future. With new bankruptcy laws recently being placed, a lawyer’s knowledge is paramount.
There are a few different types of bankruptcy a person can file for. A lawyer will be able to inform clients of their options. While there are a few different options, not everyone qualifies for each one. A client can consult with a lawyer and look over financial documents to determine the best course of action. Some of the most common forms of bankruptcy are chapter 7 and chapter 13 bankruptcy. They each have their different benefits. Bankruptcy Lawyers in Jackson, MS will be able to help clients figure out the necessary steps to take and how each type of bankruptcy will affect them.
Chapter 7 bankruptcy is the one that most people are familiar with. It essentially erases debts and protects the filer from creditors. It allows filers to have a fresh financial start. There are specific requirements to qualify for chapter 7 bankruptcy. Filers have to make less money than the median income for people in their area, and even then they may still have to undergo a means test to test for eligibility. While it may seem that all debts can be erased with chapter 7 bankruptcy, it does not cover all debts. Child support, student loans, and tax debt will still need to be paid off.
Chapter 13 bankruptcy is a little different in the sense that it doesn’t eliminate debts. It still allows filers to start anew, but instead of eliminating debts, a payment plan is created to pay of creditors. This amount is usually paid within 3-5 years. The payment amount is determined based on income. Payment is made to a trustee rather than creditors and allows filers to be debt free quickly. All in all, Bankruptcy Lawyers in Jackson, MS can help clients rid themselves of debt and start anew. Without the burden of financial debt, people can begin to look forward to a brighter future.
