Recent years have been challenging financially for many in Mississippi and across the country. Thankfully, many individuals have been able to seek debt relief to resolve their immediate financial problems. Some find a solution by filing for Chapter 7 bankruptcy. While this program can help an individual or business pay back creditors, it does not guarantee that new financial problems will not arise in the future.
Many people find themselves in need of immediate debt relief more than once in a lifetime. Others can liquidate assets through Chapter 7 but may still need assistance to continue to make payments on debts that were not discharged through liquidation. In such cases, it is sometimes possible to file for Chapter 13 bankruptcy following a Chapter 7 petition.
Rules regarding Chapter 13 after a Chapter 7 bankruptcy
Chapter 13 and Chapter 7 bankruptcies are two separate programs with unique purposes. Chapter 7 provides financial relief for those whose incomes fall beneath the state median and who have no foreseeable way to resolve their debt. Chapter 13, on the other hand, is a payment restructuring program. With this debt relief option, lenders receive restructured payments according to a court-approved plan. The monthly amount of a financial obligation could be lowered to a more manageable level, or the term of a loan could be extended.
To file for Chapter 13 bankruptcy in Mississippi after completing a Chapter 7 program, one must wait four years. In some cases, it is possible to do so earlier. It is helpful to seek guidance and support from an experienced bankruptcy law attorney before signing a debt relief petition.
