Mississippi and Federal Bankruptcy law requires that you list each and every creditor, person and company that you owe money. This does not mean that you will lose your house, car, truck or furniture. The Mississippi courts require that you list everyone so they can get an accurate picture of your financial situation.
Most secured creditors want you to keep the house, cars and furniture. Creditors would rather have you paying for the property then get it back, but it will be your decision what property you want to keep and pay for and what to surrender and walk away from.
If you have a zero balance on a bill then that is not a debt, you do not owe them money and they do not have to be listed. But, speak with your lawyer before you go out and start paying bills to keep from listing them. You may be creating more problems for yourself and the court may take the money back from the creditor and then divide it among all your creditors.
All credit card companies will cancel your credit card once they find out that you filed bankruptcy even if you don’t list them. This will happen even if you intended to pay them and wanted keep using the card, so there is no reason not to list them. Credit card companies check your credit periodically so they will find out sooner or later and cancel the card.
If you have questions about bankruptcy in Mississippi, or are considering filing bankruptcy, give me a call at 601.948.1600.