Answering Your Frequently Asked Questions About Bankruptcy Law In Mississippi
As a debt relief attorney, I understand that if you are contemplating filing for bankruptcy, the amount of debt you are facing is probably overwhelming and you are most likely under a great deal of stress. I am Nicholas T. Grillo. I founded Grillo Law Firm to provide legal advice and assistance to clients in Hattiesburg and throughout southern Mississippi who are overwhelmed by debt.
Below, I answer some of the most commonly asked questions about filing for bankruptcy. But every case and scenario is unique. For answers to your specific questions, I offer a free consultation.
Which is considered better: Chapter 7 or Chapter 13 bankruptcy?
Every single case and financial scenario is different, and which type of bankruptcy filing is better for you will depend on your assets, potential income, the amount of debt you have in your name and your ongoing financial obligations. For some people, a Chapter 7 bankruptcy will work best and for others, a Chapter 13 bankruptcy will be a better choice. Both bankruptcy options will affect your credit score in the same way.
Can I keep my home if I file for bankruptcy?
Whether you will be able to keep your home during a bankruptcy proceeding will depend on several factors, including:
- Which type of bankruptcy you are filing for
- Whether you have been making your mortgage payments
- The amount of equity in your home
- Whether your home’s equity will be classified as exempt or nonexempt
If you own a home, as part of your initial consultation appointment, you and I can discuss the different options that are available for you with respect to your home if you choose to file for bankruptcy.
Why does it matter if assets are exempt or nonexempt?
Determining the difference between exempt and nonexempt assets is important for a Chapter 7 liquidation bankruptcy proceeding because nonexempt assets must be forfeited and can be sold by the trustee and the money will be used to pay off certain debts. Designations for exempt assets can be limited and must be approved by the court.
Are there any debts that can’t be discharged in bankruptcy?
There are several types of debt that cannot be discharged in bankruptcy. These debts include:
- Child support and alimony
- Fines owed from criminal charges
- Student loans
- Some types of unpaid taxes
In order to discharge student loans as part of a bankruptcy filing, debtors must be able to prove that repaying the loans would result in undue financial hardship. In some limited circumstances, you may also be able to discharge some types of tax debt if certain conditions are met.
Will filing for bankruptcy affect my credit rating?
It is normal to be worried about how filing for bankruptcy will affect your credit rating. A bankruptcy filing will have an effect on your credit score, but how much it will affect it will depend on the facts and circumstances of your specific situation. In some cases, the financial and debt relief that filing for bankruptcy provides is absolutely worth the effect that it has on your credit score.
How long does bankruptcy affect my future credit rating and ability to borrow money?
Filing for bankruptcy will affect your future credit rating for seven to 10 years from the date that you file, depending on the facts and circumstances of your specific financial situation. However, the damage to your credit rating in the short term may be worth it if your debts are discharged and you become debt free. The short-term risk to your credit rating may be worth the long-term success of getting your debt and spending habits under control.
Consult With A Bankruptcy Lawyer For Free
Every situation is unique. I understand that you probably have a lot of questions. I offer prospective clients a free initial consultation so that I can answer your questions and tell you more about my services as a bankruptcy lawyer. To schedule your free appointment, you can call my office at 769-447-3647 or send me an email through my website form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.