Menu Contact
866-504-5969
662-655-1012
View Our Practice Areas

Southhaven Legal Issues Blog

Steps to purchasing a car during Chapter 13 bankruptcy

It is possible for Mississippi residents to get financing for a car while in Chapter 13 bankruptcy. However, the process may take longer and be more difficult than for people who are not in bankruptcy. The first step is to find a lender and dealer. If finding a lender is not possible, the next step is to look for a subprime dealership. They specifically work with lenders whose specialty is people with bad credit.

The dealer will create a buyer's order once the terms of the loan have been agreed upon and the vehicle has been chosen. This must then be submitted to the trustee along with paperwork that includes an explanation of why the vehicle is needed. A trustee is not likely to approve a luxury vehicle, so making the right choice is important.

Understanding Chapter 7 and Chapter 13 bankruptcy

For people in Mississippi struggling with unrepayable debt, bankruptcy can be a way out from financial disaster. However, the types of debt that can be wiped away in bankruptcy vary depending on the type of bankruptcy a person pursues. In addition, some types of debts are almost always dischargeable while some types of debt are notoriously difficult to discharge.

Most consumers who file for bankruptcy pursue either Chapter 7 or Chapter 13 bankruptcy, both of which help people to find a new financial lease on life after debt. Only people who make below a certain income, usually the state median, can file for Chapter 7 bankruptcy. Under this type of filing, a person's assets are liquidated while the funds are distributed to creditors to satisfy the debt. Some assets are exempt from liquidation, including those necessary for life such as a car or tools used on the job. After this process, remaining debt that is qualified for discharge will be fully released, and creditors will need to stop their attempts to collect these debts.

The top 5 things you should do after bankruptcy

Your Mississippi bankruptcy is over and the court gave you your discharge papers. Congratulations! Now that you have your financial feet on the ground, it is time for you to begin your post-bankruptcy life. You likely learned so much during the past months that you can start afresh to establish and build your credit and responsibly manage it.

Reestablishing your credit, however, is the final of five things you should do. Here are all five.

How to tell when you should file bankruptcy

If you are a Mississippi resident whose monthly bills exceed your monthly income, you likely are in a quandary over what to do. You may be considering bankruptcy as a last resort, but are confused about which type is best for you. In addition, you may fear that you will lose everything if you file bankruptcy. Set your mind at rest. You do not lose everything in a bankruptcy. In fact, many of your assets are exempt in a Chapter 7 bankruptcy.

While bankruptcy admittedly is a drastic solution to your financial problems, sometimes it not only is your best option, but also your best strategy. If you have reached the point where one of the following red flags applies to you, you may wish to seriously consider bankruptcy.

Save money on healthcare cost to reduce debt in retirement

Healthcare costs are among the most significant financial concerns for senior citizens. When Mississippi seniors retire, they typically lose their employer-sponsored health insurance and depend on Medicare to cover healthcare costs. Although Medicare covers many of the medical expenses seniors face, it also includes deductibles for inpatient care and coinsurance for outpatient treatment. Fortunately, there are some things seniors can do to minimize their out-of-pocket costs and avoid excessive medical debt.

One way to avoid bankruptcy due to medical debt is to reduce expenses. Seniors can do this by keeping their employer health plan as long as possible to delay signing up for Medicare parts B and D. After they retire, seniors could reduce expenses by purchasing a Medicare gap policy. This kind of private insurance covers coinsurance and deductibles that the senior would be responsible for if they only had Medicare coverage.

Inadequate estate planning can be corrected

A surprising number of American don't have financial or health plans in place to deal with end-of-life matters. Without the right documents or financial provisions, seniors can be subject to unfortunate, yet avoidable, conditions. One in five Americans over the age of 65 is subject to financial abuse for this reason, but few people think they are vulnerable. The good news is that estate planning mistakes can be fixed.

Four particular documents are essential for estate planning: a will, an advanced healthcare directive and a power of attorney for both health and financial matters. In order to avoid being overwhelmed, advisers recommend that people should approach this process in a piecemeal manner. The most financially threatening issues should be dealt with first, including excessive debt that threatens assets. Then, it's important to specify the kind of care an individual wants if they become incapacitated.

Understanding the ramifications of Chapter 7 bankruptcy

Filing for bankruptcy is not a decision that those in Mississippi or anywhere else in the country can take lightly. While many debts could be eliminated in a Chapter 7 filing, it could also result in a person's credit score dropping by about 200 points. This may make it harder to borrow money, and lenders who are willing to work with a person after bankruptcy will likely charge high interest rates.

Chapter 7 bankruptcy is ideal for those who either don't have a lot of money or don't have any income at all. A trustee will be appointed to liquidate a debtor's non-exempt assets and use the money raised to repay creditors. If a debtor also has secured debts like a home or car payment, he or she could choose to continue making those payments in a Chapter 7 filing.

Credit repair strategies after filing for bankruptcy

People in Mississippi with bankruptcies on their records naturally await the day when their credit reports no longer show their defaults. The Fair Credit Reporting Act allows credit bureaus to report bankruptcies for up to 10 years from the date of filing. Until then, former debtors can take steps to improve their credit ratings and potentially remove bankruptcies from their records.

A certified financial planner said that Chapter 7 bankruptcies remain on record for 10 years, but Chapter 13 cases can come off records after only 7 years. People might have the ability to remove these events from their credit reports if the credit agencies have recorded them inaccurately. To begin, a person would examine credit reports from all three major credit reporting companies. If any errors are present, then the person could dispute the entry. A credit agency's inability to verify a bankruptcy might enable a person to have the record removed. Another tactic involves contacting the court house where the bankruptcy filing took place. If the court did not verify the bankruptcy for the credit agencies, then it would be an unverified entry. After obtaining a written statement about this, a person could ask the credit bureaus to erase unverified entries.

4 tips for preparing for bankruptcy

If you are accumulating too much debt, you may think about filing for bankruptcy. While it may sound intimidating to go bankrupt, it may be a good option for you. It can help you get free from crippling debts and start over.

However, before you rush into filing for bankruptcy, there are some things to handle. Here are some steps you should take before declaring bankruptcy.

Different ways to obtain debt relief

Up to 80 percent of Americans living in Mississippi and throughout the country have some form of debt. However, for some, that debt may become too large to manage in an effective manner. To start the process of lowering credit card and other balances, it is important to understand the different options available to achieve that goal. One such option is to apply for a personal loan.

Personal loans allow individuals to consolidate a variety of different debt balances into one payment. Typically, these loans come at a lower interest rate than credit card companies charge. This results in lower monthly payments and the ability for an individual to improve his or her credit score. Another option for those with credit card debt is to transfer balances to to a new credit card with a lower interest rate.

Don’t wait any longer.Request a free initial meeting now.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get driving directions to our office.

O'Brien Law Firm, LLC
1630 Goodman Road East, Suite 5
Southaven, MS 38671

Toll Free: 866-504-5969
Phone: 662-655-1012
Fax: 662-349-9869
Southaven Law Office Map