Bankruptcy in Mississippi is a legal procedure through which some of the debts of an individual or a business are discharged (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult process. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Mississippi bankruptcy attorney can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your particular case.
Types of Bankruptcy in Mississippi
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Mississippi will be the same as anywhere else in the United States. There are 2 basic types of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy usually used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
Chapter 7 bankruptcy in Mississippi is sometimes called "liquidation" because it involves the forced sale of some (though certainly not all) of the debtor's assets. The bankruptcy court will appoint a trustee to oversee the appraisal and sale of some of the debtor's property, and the proceeds from the sale will go to the creditors, in their order of priority. Certain types of property are exempt, and do not need to be sold, including houses and insurance policies. Once the property is sold, and the proceeds given to the creditors, the rest of the debt is discharged. Chapter 13 bankruptcy usually reorganizes, rather than discharges, one's debts. Basically, the court will come up with some type of repayment plan, independent of the terms of the agreements that created the debt in the first place (superseding any acceleration clauses). This is meant to give the debtor some breathing room, allowing them to repay their debts over time, without facing financial ruin in the process.
Chapter 11 bankruptcy is normally used by businesses, rather than individuals. Much like Chapter 13, it involves reorganization of debts. It compels the debtor to come up with a reorganization plan, but this plan has to be approved by a majority vote of participating creditors. Once it is approved, the company is obligated to carry it out.
How Can a Mississippi Bankruptcy Lawyer Help?
Because bankruptcy is a huge financial and life decision, it is not one to be made without as much information as possible. A Mississippi bankruptcy lawyer can help give you this information, and advise you as to whether or not bankruptcy is a prudent course of action, given your individual situation.
Interesting Facts About Mississippi
Mississippi is named after the Mississippi River, which marks the state's western boundary. Much of the state's economy revolves around the river. For example, Mississippi is one of the leading producers of farm-raised catfish in the U.S. The city of Jackson is Mississippi's state capital.
Mississippi is known for being an innovator in terms of new laws. The state was the first ever to implement a state sales tax, and the first to enforce a Married Women's Property Act. It was also one of the first states to decriminalize marijuana possession. On the other hand, Mississippi also maintains some very strict laws. Many counties in the state are "dry" counties, meaning that alcohol sales are heavily regulated in those areas. Also, the state has approved legislation banning same-sex marriages.
Mississippi's highest court of law is the Supreme Court of Mississippi. It was originally called the "High Court of Errors and Appeals". Some appeals go straight to the Supreme Court from the trial court level. However, most appeals are heard in the Mississippi Court of Appeals. The Court of Appeals is relatively young, as it began operations only in the year 1995. The Court of Appeals was created to relieve the Supreme Court's caseload.
Lawyers in Mississippi can provide much-needed help in many areas of law. Experienced Mississippi lawyers provide expert advice and guidance regarding the state's laws. An attorney in Mississippi can also represent you in court if a lawsuit is necessary.