First of all, discuss your situation with a competent and knowledgeable bankruptcy attorney, preferably one who only represents consumers. Do it before you do anything thing else, before you pay any creditors or relatives, before you give any property away, before you let the house go, before you take on new credit or sell any of your property.
There are numerous differences between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy in Mississippi and many reasons to choose one over the other. Here is a list of reasons why a Mississippi Chapter 13 Bankruptcy might be the best option for you:
A Chapter 13 will save a house from foreclosure.
A Chapter 7 case can be disputed by the US Trustee, but not Chapter 13.
The fees charged by your lawyer can be spread out in the plan rather than all paid before filing.
You can pay a tax debt or child support and alimony over 60 months.
More debts can be discharged in a 13, including some divorce payments and damages for malicious and willful acts.
You can dismiss the case at any time.
You can convert the 13 to a Chapter 7.
You can modify a plan if your income changes or you later decide to give up a house or a car.
You can sell your house or refinance it during the plan.
You cancel an unsecured second mortgage,
You can pay value only on any car you’ve had for more than 2.5 years.
You can challenge the fees and charges added to your mortgage.
Trustees want your case to succeed and will work with you to get it approved.
You can stretch out payments for vehicles and other secured debts.
You wont lose your non-exempt property.
This is not all of the advantages of filing a Chapter 13 in Mississippi but will give you an idea of why you may want to consult with an attorney even if you think a Chapter 7 is what you need. If you are outside of our area, we can refer you to a competent bankruptcy attorney in your town.