As someone who has decided to file for bankruptcy, you may have done so in an attempt to stop the seemingly constant onslaught of phone calls from debt collectors. Such calls can prove, at best, a nuisance, and you may also have concerns about how it looks to have debt collectors calling you up at your place of business.
Mississippi residents who are having trouble paying off debts might look to the bankruptcy system for relief. For most individual filers, there are two options, Chapter 7 and Chapter 13. There is a limit on how much debt a filer can have if they want to file bankruptcy under Chapter 13. Specifically, the filer cannot have more than $1,184,200 in secured debts or more than $394,725 in unsecured debts.
Many working people living in Mississippi struggle with their finances. Living paycheck to paycheck, they find it difficult to get ahead of crippling debt. If an emergency strikes, such as a family illness or job loss, they may have difficulty affording food, utilities and shelter.
Debtors in Mississippi who have significant debt and who have a lower income or no income may benefit from a Chapter 7 bankruptcy. However, they should carefully consider their financial situation and the impact that bankruptcy will have on their credit before filing.
Data published by credit reporting agency Equifax indicates that people in Mississippi and across the country owe $13.5 trillion in total consumer debt. Of that debt, more than $1 trillion is owed by people between the ages of 18 and 29. This debt is primarily made up of student loans, but it also includes credit card debt, mortgage debt, auto loans and other types of consumer debt. The last time people in this demographic owed over $1 trillion was just before the 2008 financial crisis during the fourth quarter of 2007.