Jackson Chapter 13 Bankruptcy Lawyer

If you have been trying to decide if bankruptcy is right for you, one option for individuals is Chapter 13 bankruptcy. At The Law Offices of Wes Stover, we will help you understand if Chapter 13 is right for you so you can make an informed decision. No matter your situation, do not hesitate to contact us for guidance.

Also known as the “repayment plan” bankruptcy option, Chapter 13 is an excellent option for those who either do not qualify for Chapter 7 bankruptcy or who want to keep their valuable property and assets (as well as possibly avoid wage garnishments). It does this by using a repayment plan, which allows you an allotted time to pay back your debts. 

What Are The Benefits Of Filing For Chapter 13?

Chapter 13 bankruptcy, commonly referred to as reorganization bankruptcy, provides individuals with a consistent income the chance to formulate a repayment plan for some or all of their debts. In contrast to Chapter 7 bankruptcy, which requires liquidating assets to settle outstanding debts, Chapter 13 permits debtors to retain their assets while gradually repaying creditors over a designated period.

Many people in Jackson choose this route because it lets them take control of their finances instead of reacting to lawsuits, garnishments, or foreclosure notices. A carefully prepared Chapter 13 plan can bring structure to an otherwise chaotic situation and give you one predictable payment each month. Our goal is to help you understand how those payments will affect your budget over time so you can decide whether Chapter 13 bankruptcy in Mississippi is truly the right fit for you and your family.

Benefits of Chapter 13 bankruptcy include:

• Protection from foreclosure or repossession
• Ability to catch up on missed mortgage or car payments
• Reduced or consolidated debt payments
• Opportunity to discharge certain debts after completing the repayment plan
• Ability to keep non-exempt property

In addition to assisting you in creating a workable repayment plan and offering the necessary legal support to help you pursue financial stability, our knowledgeable Jackson Chapter 13 bankruptcy attorney can help you navigate the process. To discuss your possibilities for debt relief, get in touch with The Law Offices of Wes Stover right now.

How To Qualify For Chapter 13

Your repayment plan can be tricky to figure out, and usually it includes just a rough estimate. Most individuals create a five-year plan, but when possible, some may opt for a three-year plan. In this payment plan, you will need to include priority debts, secured debts, unsecured debts, and trustee fees.

When we meet with you, we review your income, regular expenses, and the types of debts you have so we can see how a Chapter 13 repayment plan might look in real numbers. This includes talking through how changes in your income, overtime, or seasonal work could affect your ability to stay current on the plan. By walking through realistic scenarios together, we help you decide whether filing with a Chapter 13 bankruptcy lawyer in Jackson is a practical step toward long-term relief.

To qualify for Chapter 13 bankruptcy, three things have to be true: 

• Your debt cannot be too high (specifically, $1,395,875 of secured debt and $465,275 of unsecured debt). If your debts are too high, you do have other options, such as filing for Chapter 11 bankruptcy.
• You will need sufficient income. You will have to prove you can afford to pay regular obligations as well as the monthly plan payment.
• You are either an individual or a sole proprietor. Small businesses and companies cannot file—only owners who file individually. Your attorney can help you see if you qualify and show you your options if you do not. 

Call The Law Offices of Wes Stover today at (601) 401-8996or contact us onlineto schedule a free consultation.

The Process of Filing 

Deciding if Chapter 13 is right for you can be difficult, but once you have made that choice, a skilled bankruptcy lawyer can help you take your next steps forward, including the following: 

1. Take a credit counseling course. You will be required to do this before filing, and you should make sure to choose a path that has been approved by the Department of Justice U.S. Trustee Program.
2. File your paperwork. This paperwork should be filled out with the support of an attorney, who can help you understand the details and court expectations. Also, you and your lawyer will create a tentative payment plan, which should be sent to court, too. Soon after, you will receive a letter stating you have an automatic stay on debt, and your bankruptcy trustee and all creditors will also be informed. In other words, until the 341 meeting of creditors, you will not have to pay those debts.
3. Prepare for and then go to the 341 meeting of creditors. Give your trustee important documents such as tax returns, bank statements, pay stubs, and more. At this meeting, you will answer any additional questions your trustee will want to know regarding debts or assets. Your attorney is not required to come, but it may help you to have your attorney by your side.
4. Begin to pay debts according to your repayment plan, even if the court has not confirmed it. If the court does not confirm the plan, you may be able to receive refunds for your payments.
5. Confirm your payment plan. You have several opportunities to correct any issues in your plan. 
6. Pay off your debts according to your plan. Generally, your debts will be paid off in five years.  

How Does Chapter 13 Differ From Chapter 7 Bankruptcy?

Understanding the differences between Chapter 13 and Chapter 7 is essential when deciding which option best suits your financial situation.

Key ways Chapter 13 differs from Chapter 7 include:

• Treatment of your property. Chapter 13 allows you to keep your assets while you repay creditors over time, while Chapter 7 may involve selling non-exempt property to pay debts.
• Length of the case. A Chapter 13 repayment plan usually lasts three to five years, but a Chapter 7 case is typically completed in a few months.
• Eligibility rules. Chapter 7 requires you to pass a means test based on your income, while Chapter 13 focuses more on whether you have enough income to make plan payments.
• Type of debt relief. Chapter 13 can help you catch up on secured debts like mortgages and car loans, while Chapter 7 primarily wipes out many unsecured debts such as credit cards and medical bills.

Chapter 13 bankruptcy provides individuals with a consistent income the opportunity to create a structured repayment plan to manage all or part of their debts. This form of bankruptcy is specifically tailored for those who want to keep their property while gradually paying off creditors over a period of three to five years. Through Chapter 13, debts are consolidated, and monthly payments are made to a bankruptcy trustee, who subsequently distributes the funds to the creditors. This method can be especially advantageous for those who are delinquent on mortgage payments or have substantial non-dischargeable debts like taxes or child support.

For many people in Jackson, Chapter 13 is also appealing because it can protect co-signers on certain debts and give you time to address car notes, back taxes, or other obligations that might not be cleared in a Chapter 7 case. We take time to review how each chapter would affect specific debts such as medical bills, credit cards, and personal loans so you can compare what life might look like after each option. That way, you are choosing the chapter that best supports your long-term financial goals rather than focusing only on short-term relief.

Conversely, Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, entails selling a debtor's non-exempt assets to satisfy creditors. This procedure is generally quicker, typically concluding within a few months, and offers a fresh start by discharging the majority of unsecured debts. However, eligibility for Chapter 7 is not universal; it requires passing a means test to assess whether your income falls below a certain threshold. Furthermore, there is a risk of losing specific assets, though Mississippi’s exemption laws can safeguard some of your property.

Frequently Asked Questions

How Long Does A Chapter 13 Case Usually Last?

Most Chapter 13 plans run for three to five years, depending on your income and how much you need to repay to creditors. The Bankruptcy Court for the Southern District of Mississippi will review your income, expenses, and debt levels to decide whether a three-year or five-year plan is appropriate. During that time, you must make your plan payments on schedule in order to receive a discharge at the end of the case. If your income changes, it may be possible to ask the court to modify your plan so that it remains manageable.

Will I Have To Go To Court In Jackson?

In a typical Chapter 13 case, you will attend the 341 meeting of creditors and, in some situations, a confirmation hearing if there are issues with your plan. These proceedings are usually held in or near Jackson for cases filed in the Southern District of Mississippi. We explain where you need to be, how to dress, and what questions you are likely to be asked so you feel prepared. Many hearings are brief, but it is important to treat each appearance seriously and arrive with the right documents.

What Happens If I Miss A Chapter 13 Payment?

If you miss a plan payment, your trustee may file a motion asking the court to dismiss your case. In many situations, problems can be addressed if you act quickly and communicate about what happened. Options might include catching up the missed payment, adjusting your budget, or requesting a modification of your plan if your circumstances have changed. We talk with you about any bumps in the road as soon as they arise so we can work toward a solution before your case is put at risk.

Start on your path toward financial freedom with the support of our bankruptcylawyer. We will help you decide on and write out your bankruptcy planand guide you through the filing process so you can move forward.