Bankruptcy Overview: What Should You Know?
There are a lot of misconceptions, and some fear, surrounding bankruptcy. The truth is that bankruptcy offers relief and a better financial future.
At the Fava Firm, we help Northern Mississippi families and small business owners find freedom from debt with Chapter 7 and Chapter 13 bankruptcy:
- Chapter 7 Bankruptcy: Also known as “liquidation bankruptcy,” Chapter 7 allows qualified individuals to discharge certain debts, including credit card debt and medical bills.
- Chapter 13 Bankruptcy: Also known as the “wage earner’s plan,” allows individuals with a regular income reorganize their debts and repay them over a 3-5-year period of time.
The Benefits Of Filing For Bankruptcy
There are many benefits to filing from bankruptcy, including:
- Stopping foreclosure
- Stopping repossession
- Stopping harassing creditor calls
- Offering a chance to rebuild credit
- Offering an opportunity to make future bill payments on time
- Offering a sense of peace and calm
Will filing for bankruptcy permanently ruin my credit?
No, you can immediately start rebuilding your credit once you file for bankruptcy. In fact, filing for bankruptcy can help your credit score long-term, since you will now be able to make on time bill payments.
Is there a certain amount of debt needed to qualify for bankruptcy?
There is no minimum amount of debt required to file for bankruptcy. The Fava Firm will evaluate your existing debt, income levels and other key factors to advise whether you should file.
All the advice we provide is made with your best interests in mind. If we do not recommend bankruptcy, we will tell you during your free initial consultation.
Do I make too much money to file for bankruptcy?
Mississippi residents of all income levels file for bankruptcy. If you have a higher, regular income, you may not qualify for Chapter 7 bankruptcy, but you could still file for debt relief under Chapter 13 bankruptcy.
Speak With The Team In A Free Consultation
The bankruptcy process can feel overwhelming. The Fava Firm team will be there with you each step of the way to make sure your questions and concerns are addressed.