Questions & Answers About Bankruptcy

Questions & Answers About Bankruptcy

Q: What is bankruptcy?
A: Bankruptcy is a protection… It’s a legal procedure designed to help an individual or married couple, or businesses who are having financial struggles or anticipating financial troubles.  By filing a Chapter 7 or Chapter13, it will stop foreclosures, repossession of automobile, wage garnishments and/or liens.
Q:  What is a Chapter 7?
A: Chapter 7 is a “Debt Liquidation”.  A person can file a Chapter 7, if they have never filed a Chapter 7 before or if it’s been eight years from the date they last filed a Chapter 7.  If current on mortgage and/or automobile monthly payments (if reaffirmation the debt) and if income is below the standard Means Test for Mississippians. This is a few qualifications but more information is needed to determine if you can file a Chapter 7.  This can get complicated for individuals; therefore it’s important to contact TK Byrne.
Q: What is a Chapter 13?
A: A Chapter 13 is “Debt Consolidation”. It is available to stop foreclosure of your house and/or prevent repossession of your automobiles. It permits the debtor to propose a bankruptcy plan that will repay the arrearage on a house or car and continue the present obligation through Court supervision. Often this is through a wage order which is not a garnishment and an employer may not fire you for a wage order.
Q:  If my house is being foreclosed and I would like to keep my home can I file bankruptcy? 
A: YES, you can keep your house by filing a Chapter 13 bankruptcy- you must have a regular income.
Q: Can you explain what type property is exempt and give examples? 
A: Examples of exempt property may be either real property, such as your house, or personal property such as your automobile, household furnishings, clothing, and retirement plans, furniture and appliances that are solely owned by you. These items of real and/or personal property are often exempt from seizure or attachment by the Chapter 7 or Chapter 13 Bankruptcy Trustee under the Mississippi Code of 1972.
Q: Can I file bankruptcy on certain debt but not all?
A: All debt has to be included in the bankruptcy, but you are permitted to keep and reaffirm certain debts and continue to pay that creditor. However, it is always up to the creditor whether or not they want to reaffirm the debt.
Each case is unique; therefore exceptions may apply.  It is best to contact TK Byrne for a Free Initial “In-House” Consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.