What is Chapter 13 In Mississippi?

There are many types of bankruptcy, but only two types that most Mississippi residents would be interested in.  Chapter 13 is what people refer to as bill consolidation, debt relief plan and bill repayment plan.

Where a Chapter 7 wipes out or discharges your debts without any payment, a Chapter 13 proposes a plan to repay your creditors over set period of time.   The repayment plan can help you save your house by catching up the mortgage payments and paying off your vehicles at a lower monthly payment.

The unsecured creditors, such as credit cards and medical bills can be paid anything ranging from zero to a percentage of what you owe.  The payment plan must be at least 36 months and no more than 60 months and this length is based on upon your ability to pay.

The court will have the reduced monthly payment deducted from your paycheck to make sure you don’t get
behind again.   This is sometimes called the wage earner plan.   Just about any source of income can be used to fund your monthly plan.

Chapter 13 bankruptcy is ideal for a family trying to stop foreclosure and keep their home or when they need to lower the monthly car and truck notes along with other secured debts.  An individual or married couple can file Chapter 13.

If you have questions about bankruptcy in Mississippi, or are considering filing a Chapter 13 Bankruptcy, give me a call at 601.948.1600.