Jackson Chapter 13 Bankruptcy Lawyer

If you have been trying to decide if bankruptcy is right for you, one option for individuals is Chapter 13 bankruptcy. At The Law Offices of Wes Stover, we will help you understand if Chapter 13 is right for you so you can make an informed decision. No matter your situation, don't hesitate to contact us for guidance.  

Also known as the “repayment plan” bankruptcy option, Chapter 13 is an excellent option for those that either don’t qualify for Chapter 7 bankruptcy or who want to keep their valuable property and assets (as well as possibly avoid wage garnishments). It does this by using a repayment plan, which allows you an allotted time to pay back your debts. 

What Are The Benefits Of Filing For Chapter 13?

Chapter 13 bankruptcy, commonly referred to as reorganization bankruptcy, provides individuals with a consistent income the chance to formulate a repayment plan for some or all of their debts. In contrast to Chapter 7 bankruptcy, which necessitates liquidating assets to settle outstanding debts, Chapter 13 permits debtors to retain their assets while gradually repaying creditors over a designated period.

Benefits of Chapter 13 bankruptcy include:

• Protection from foreclosure or repossession
• Ability to catch up on missed mortgage or car payments
• Reduced or consolidated debt payments
• Opportunity to discharge certain debts after completing the repayment plan
• Ability to keep non-exempt property

In addition to assisting you in creating a workable repayment plan and offering the necessary legal support to help you attain financial stability, our knowledgeable Jackson Chapter 13 bankruptcy attorney can help you navigate the process. To discuss your possibilities for debt relief, get in touch with The Law Offices of Wes Stover right now.

How To Qualify For Chapter 13

Your repayment plan can be tricky to figure out, and usually, it includes just a rough estimate. Most individuals create a five-year plan, but when possible, some may opt for a three-year plan. In this payment plan, you will need to include priority debts, secured debts, unsecured debts, and trustee fees.  

To qualify for Chapter 13 bankruptcy, three things have to be true: 

• Your debt cannot be too high (specifically, $1,395,875 of secured debt and $465,275 of unsecured debt). If your debts are too high, you do have other options, such as filing for Chapter 11 bankruptcy.  
• You will need sufficient income. You will have to prove you can afford to pay regular obligations as well as the monthly plan payment.  
• You are either an individual or sole proprietor. Small businesses and companies cannot file—only owners who file individually. Your attorney can help you see if you qualify and show you your options if you don’t. 

Call The Law Offices of Wes Stover today at (601) 401-8996 or contact us online to schedule a free consultation.

The Process of Filing 

Deciding if Chapter 13 is right for you can be difficult, but once you’ve made that choice, a skilled bankruptcy lawyer can help you take your next steps forward, including the following: 

1. Take a credit counseling course. You’ll be required to do this before filing, and make sure to choose a path that has been approved by the Department of Justice U.S. Trustee Program.  
2. File your paperwork. This paperwork should be filled out with the support of an attorney, who can help you understand the details and court expectations. Also, you and your lawyer will create a tentative payment plan, which should be sent to court, too. Soon after, you’ll receive a letter stating you have an automatic stay on debt; and your bankruptcy trustee and all creditors will also be informed. In other words, until the 341 meeting of creditors, you will not have to pay those debts.  
3. Prepare for and then go to the 341 meeting of creditors. Give your trustee important documents such as tax returns, bank statements, pay stubs, and more. At this meeting, you will answer any additional questions your trustee will want to know, surrounding debts or assets. Your attorney is not required to come, but it may help you to have your attorney by your side.  
4. Begin to pay debts according to your repayment plan, even if the court hasn’t confirmed it. If the court doesn’t confirm the plan, you may be able to receive refunds for your payments.  
5. Confirm your payment plan. You have several opportunities to correct any issues in your plan. 
6. Pay off your debts, according to your plan. Generally, your debts will be paid off in 5 years.   

How Does Chapter 13 Differ From Chapter 7 Bankruptcy?

Understanding the differences between Chapter 13 and Chapter 7 is essential when deciding which option best suits your financial situation.

Chapter 13 bankruptcy provides individuals with a consistent income the opportunity to create a structured repayment plan to manage all or part of their debts. This form of bankruptcy is specifically tailored for those who want to keep their property while gradually paying off creditors over a period of three to five years. Through Chapter 13, debts are consolidated, and monthly payments are made to a bankruptcy trustee, who subsequently distributes the funds to the creditors. This method can be especially advantageous for those who are delinquent on mortgage payments or have substantial non-dischargeable debts like taxes or child support.

Conversely, Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, entails selling a debtor's non-exempt assets to satisfy creditors. This procedure is generally quicker, typically concluding within a few months, and offers a fresh start by discharging the majority of unsecured debts. However, eligibility for Chapter 7 is not universal; it necessitates passing a means test to assess whether your income falls below a certain threshold. Furthermore, there is a risk of losing specific assets, though Mississippi’s exemption laws can safeguard some of your property.

Consult Chapter 13 Attorneys in Jackson Today

Start on your path toward financial freedom with the support of our bankruptcy lawyer. We will help you decide on and write out your bankruptcy plan and guide you through the filing process so you can move forward.