In Mississippi and throughout the country, millions of people are struggling to stay afloat financially. Some are business owners, while others are simply individuals trying to make ends meet. When things get out of hand and resolving debt in conventional ways (like cutting back on spending or working overtime to generate more cash flow) has not been successful, it might be time to consider a valuable tool known as Chapter 13 bankruptcy.
The Chapter 13 program is available to those who meet the eligibility requirements. It is best to meet with someone who can suggest which bankruptcy options best fit a particular set of circumstances before filing a petition. If someone is unemployed, then Chapter 13 is not available because having a reliable income is required for this type of debt relief.
How does Chapter 13 bankruptcy work?
Those who work in the financial industry commonly refer to Chapter 13 bankruptcy as “the wage earner’s debt relief.” As noted, a petitioner must have a consistent, reliable means of income to qualify for the program. That income must be at or above the median level throughout the state. A petitioner must itemize all assets and debts and all relevant information regarding their income and expenses.
If a petition is approved and the Court approves a debt consolidation plan, Chapter 13 bankruptcy will proceed. The process involves restructuring payment plans, either by extending the life of a loan or lowering monthly payments until the court-approved plan is completed successfully. The process typically takes three to five years. A Mississippi bankruptcy law attorney can help determine whether this program or some other bankruptcy option would be the best solution.