Chapter 7: Answers To Frequently Asked Questions
If you are considering bankruptcy as an option to resolve your financial troubles, you may have more questions than answers. Attorney William Fava of Fava Firm has been helping Mississippi answer these questions for more than 15 years. Here are some important answers that you may be looking for:
What debts can I discharge under Chapter 7 bankruptcy?
Bankruptcy discharges unsecured debts or debts without collateral. These types of debt include medical debt, credit card debt and debt from unpaid utility bills.
How does Chapter 7 bankruptcy differ from Chapter 13 bankruptcy?
Chapter 7 bankruptcy has applicants sell any nonessential assets to pay off what they can from their debt, then discharge the rest. Chapter 13 bankruptcy puts the applicant on a three- to five-year payment plan and discharges any remaining debt after that time.
Do I qualify for Chapter 7 bankruptcy in Mississippi?
There are many different thresholds to qualify for bankruptcy in Mississippi. Depending on the number of people in your household and your monthly and annual income, you may qualify. The means test is a way of calculating if your income meets the sufficient threshold. You can find a means test calculator online.
How long does it take to file for bankruptcy under Chapter 7?
If there are no unexpected complications in your application process, you can expect bankruptcy to take effect within four to six months. An attorney can help you navigate the application process to avoid any mistakes.
Do both spouses have to file for Chapter 7 bankruptcy jointly?
Spouses can file jointly for Chapter 7 bankruptcy, but it is not mandatory. If only one spouse is in debt, they may choose to apply for bankruptcy on their own.
Will I lose all of my property if I file for Chapter 7 bankruptcy?
Chapter 7 bankruptcy does require applicants to part with some assets, but not all of them. An applicant will only need to sell nonessential assets like a second home or car, heirlooms, or expensive jewelry.
Where Do I Start? Call For A Free Consultation.
If you are looking to apply for bankruptcy, schedule your initial consultation with Mr. Fava at his Southaven office today. Call 662-546-1540 or email him here to set up your appointment and discuss how you can get control over your future.