Best Bankruptcy Lawyers in Biloxi

About Bankruptcy Law in Biloxi, United States

Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of federal bankruptcy laws. In Biloxi, United States, bankruptcy cases are handled by the U.S. Bankruptcy Court for the Southern District of Mississippi. The purpose of bankruptcy is to provide individuals and businesses with a fresh financial start by either liquidating assets or creating a plan to repay creditors over time.

Why You May Need a Lawyer

While it is not required to hire a lawyer when filing for bankruptcy, it is highly recommended due to the complicated nature of the process. Here are some common situations where you may need a lawyer:

• If you're unsure whether bankruptcy is the right option for you
• If you need assistance in completing the bankruptcy forms accurately
• If you have valuable assets that you want to protect
• If your income is above the median for your state and you need to pass the means test
• If you're facing foreclosure, wage garnishment, or repossession

Local Laws Overview

When filing for bankruptcy in Biloxi, it's important to be familiar with the following key aspects of local laws:

• Exemptions: Mississippi has its own set of bankruptcy exemptions that determine which assets you can keep during bankruptcy. These exemptions may differ from federal exemptions.
• Chapter 13 Plan: If you choose to file for Chapter 13 bankruptcy, you must create a repayment plan that will be reviewed and approved by the court. The plan should outline how you will repay your creditors over a specific period of time.
• Means Test: The means test is used to determine if you qualify for Chapter 7 bankruptcy based on your income and expenses. It compares your average monthly income to the median income in Mississippi. If your income is below the median, you automatically pass the means test.

Frequently Asked Questions

Q: What is the difference between Chapter 7 and Chapter 13 bankruptcy?

A: Chapter 7 bankruptcy involves liquidating non-exempt assets to repay creditors, and most unsecured debts are discharged. Chapter 13 bankruptcy creates a repayment plan to pay off creditors over a period of three to five years while keeping your property.

Q: Will bankruptcy stop foreclosure proceedings?

A: Yes, filing for bankruptcy triggers an automatic stay, which temporarily halts foreclosure proceedings. It provides you with an opportunity to catch up on missed payments or negotiate with your lender.

Q: Can I keep any credit cards after filing for bankruptcy?

A: It's unlikely that your credit cards will remain open after filing for bankruptcy. Most credit card companies close accounts upon notification of a bankruptcy filing.

Q: Will bankruptcy ruin my credit forever?

A: Although bankruptcy will remain on your credit report for a number of years, it doesn't mean you won't be able to rebuild your credit. With responsible financial behavior, such as paying bills on time and using credit wisely, you can begin rebuilding your credit within a few years after bankruptcy.

Q: Are all my debts dischargeable in bankruptcy?

A: While most unsecured debts can be discharged in bankruptcy, some debts cannot be eliminated, including student loans, child support, alimony, and certain tax debts.

Additional Resources

If you need more information or assistance with bankruptcy in Biloxi, United States, you may find the following resources helpful:

• U.S. Bankruptcy Court - Southern District of Mississippi: https://www.mssb.uscourts.gov/
• American Bankruptcy Institute: https://www.abi.org/
• Mississippi State Bar Association: https://www.msbar.org/

Next Steps

If you're considering filing for bankruptcy or need legal assistance, here's how you can proceed:

1. Evaluate your financial situation and determine if bankruptcy is the right option for you.
2. Research and choose a reputable bankruptcy lawyer in Biloxi who specializes in bankruptcy law.
3. Schedule a consultation with the lawyer to discuss your case in detail and understand your options.
4. If you decide to proceed with bankruptcy, work closely with your lawyer to gather all necessary documents and information for the filing process.
5. Follow your lawyer's guidance throughout the bankruptcy proceedings and attend all required meetings and hearings.
6. After bankruptcy, focus on rebuilding your financial health and following responsible financial practices.