It used to be that filing bankruptcy in Mississippi carried with it a bad social stigma. Not anymore. Did you know that Toni Braxton has filed bankruptcy twice. She stated in an interview that “bankruptcy for me was a protection”. She used bankruptcy to protect herself from all the creditors that came after her when she canceled her Las Vegas show due to illness.
People who really need to file bankruptcy in Mississippi to stop foreclosure or stop wage garnishment still hear persistent myths that are either half-truths or completely false. The goal of bankruptcy is to help you out of difficult financial problems.
Here is a short run-down of some of the top false myths about bankruptcy.
1. You Can’t File for Bankruptcy Anymore
Not true. There were changes to the law in 2005, but the end result was to put more of a burden on bankruptcy attorneys. Bankruptcy is alive and well and an important financial tool.
2. Your Credit Will Be Ruined
Not true. Bankruptcy does have an impact on your credit history – but in most cases that impact can improve your credit score.
3. You Will Lose Everything
Not true. Mississippi bankruptcy law allows you to keep a certain amount of property, along with your house and cars. This is true in Chapter 7 and Chapter 13. No one wants you to start over again with nothing.
4. You Will Lose Your Retirement
Not true. File bankruptcy in Mississippi and your retirement account, 401(k) plans and IRAs are exempt and fully protected, no matter how much you have in the account.
5. You Can Only File Bankruptcy One Time
There are limits on how many times you can get a discharge in bankruptcy, but you can file more than once. A Chapter 7 discharge is available every eight years. Chapter 13 discharge is available every two years or four years from a Chapter 7 discharge. A Chapter 13 can be started in between these time periods and you will not be granted a discharge, yet you will still have all of the protection of a Chapter 13.
Bankruptcy law is complex and you should seek legal advice before selling or disposing of property if you are in a financial bind. The ultimate goal of bankruptcy in Mississippi is to help those who are in financial crises. We offer free consultation to individuals and couples who are concerned about financial problems, foreclosure, wage garnishment, and mortgage fraud.