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Bankruptcy Attorney in Tupelo, Mississippi
Is Bankruptcy right for you?
Bankruptcy Basics
We help the honest but unfortunate debtor. Most bankruptcy clients are suffering from life changes (such as divorce, or death of a loved one), medical debt, loss of employment, or other hardships. We offer a free initial consultation where we carefully evaluate your individual financial situation, discuss alternatives ranging from debt re-organization, asset protection, and if necessary bankruptcy.
We can stop creditor harassment immediately. We can stop most foreclosures, repossessions, lawsuits, and garnishments. You will be able to focus on your job and family again.
Common signs that bankruptcy might be right for you include:
- Taking money from your 401k or other retirement fund to pay debts;
- Having a high amount of unsecured debt, including credit cards;
- Discovering a collection letter from the IRS in your mailbox;
- Being unable to sleep at night because of your debt;
- Frequent arguments with your spouse over debt;
- Worrying about a possible home foreclosure;
- Receiving harassing calls from creditors;
- Dealing with a wage garnishment; or
- Fretting over high medical bills.
Relief is available under either Chapter 7 or Chapter 13 (called a consolidation or repayment plan) of the Bankruptcy Code. Although each situation is different, an average person can expect to keep their home and vehicles in a bankruptcy.
Chapter 7 Bankruptcy
Stop Wage Garnishments
Chapter 7
Chapter 7 bankruptcy protection allows debtors to get rid of most debts and start over with a clean slate. Chapter 7 is the process by which unsecured debts (credit cards, medical bills, signature loans, etc.) are eliminated (also called “discharged”). Secured debts (debts guaranteed by land, a car title, jewelry, etc.) can be reaffirmed under certain conditions. A majority of our clients keep their homes and cars in a Chapter 7 Bankruptcy.
Eligibility
You must prove eligible to file a Chapter 7 bankruptcy, but most of our clients do. A complicated calculation called the “means test” is performed to determine eligibility.
Do not worry about the test, we perform the calculations for you, and a great majority of our clients do qualify. Debtors that fail to meet the requirements of a Chapter 7 bankruptcy often file a Chapter 13 bankruptcy (often called a “repayment plan”).
There are also special exceptions for veterans, the elderly, and those with debt that primarily came from operating a business.
Protection
Bankruptcy law protects some kinds of property through exemptions and they can include your home, automobile, spouse or minor children’s automobiles, certain personal property, wildcard exemptions (a catch-all for property that doesn't fit into a designated category), tools of the trade (such as mechanic tools, a work van, or other items needed to allow you to make an income after the bankruptcy), and even your wedding and engagement rings.
Chapter 13 Bankruptcy
Save your home
Chapter 13
Chapter 13 bankruptcy is often called a “repayment plan" or "consolidation." If you are behind on payment of secured debt (debts guaranteed by your home, land, a car title, jewelry, etc.), and have a regular source of income, it allows you to get caught up over a three to five-year period.
Unlike Chapter 7 bankruptcy, where most of your unsecured debt (credit cards, medical bills, signature loans, etc.) is cancelled, in a Chapter 13 bankruptcy you may have to pay pennies on the dollar to unsecured creditors. Some clients pay nothing to unsecured creditors. It all depends on your income.
The repayment plan is the most important part of your Chapter 13 paperwork. Your repayment plan will describe in detail how (and how much) you will pay each of your debts. The plan will provide for the payment of arrearages (the amount by which you’ve fallen behind in payments), and allows payment of the arrearage in three to five years.
The main advantage to a Chapter 13 bankruptcy is that it often stops foreclosure of your home, or repossession of your automobile (or other property) in order to give you a fresh start.
Q&A
True or False?
Q&A
Everyone will know I have filed for bankruptcy
FALSE - Unless you are a prominent person or a major corporation and filing is picked up by the media, the chances are very good that the only people who know about the filing are your creditors. While it is true that bankruptcy is a public legal proceeding, the matter often goes unnoticed.
All debts are wiped out in a Chapter 7 bankruptcy
FALSE - Certain kinds of debt cannot be erased by bankruptcy attorneys. They include child support, alimony, student loans and debts incurred as the result of fraud. If you have defrauded someone and a judgment has been made against you, that won't be discharged either.
I will lose everything I have
FALSE - This is the misconception that keeps people who really should file for bankruptcy from filing. While bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car, money in qualified retirement plans, household goods, and clothing. Often people keep everything they have.
I will never get credit again
FALSE - Quite the contrary. It won't be long before you are getting credit card offers again. On the other hand, if you are planning on purchasing a reasonable home or car, you might want to do so prior to filing. These will be tougher to get after you file and the impact of even a single point of interest rate may be significant.
It will take forever to improve my credit score
FALSE - Quite the contrary. At Middleton Law Firm, Tupelo, Mississippi, we know that your bankruptcy is only part of your concern: You also want to get back to a normal live. This includes rebuilding your credit score as fast as possible. Because our clients are so concerned about their credit, we searched high and low for the best credit education program out there. After testing the program, we learned that people who have been through 720CreditScore.com’s credit program (7 Steps to a 720 Credit Score) transform their credit scores, usually within 24 months of declaring bankruptcy. The credit education program usually costs $1,000 for enrollment. However, we enroll every one of our bankruptcy clients into the program at no additional charge.
If you are married, both spouses have to file for bankruptcy
FALSE - Whether one or both spouses seek relief is a function of the type of debt owed and whether the debtor(s) live in a community property state. In many instances, only a spouse need to seek bankruptcy relief.
Only deadbeats file for bankruptcy
FALSE - Most people file for bankruptcy after a life-changing experience, such as divorce, the loss of a job, or a serious illness. They have struggled to pay their bills for months and just keep falling further behind.
I can max out all my credit cards, file for bankruptcy and never pay for the things I bought
FALSE - Simply put, borrowing money without the intent to repay is called FRAUD and is not dischargeable. Bankruptcy relief is intended for the honest, but unfortunate debtor.
We help you rebuild your credit after bankruptcy
you filed bankruptcy, now what?
After Bankruptcy
At Middleton Law Firm, we know that your bankruptcy is only part of your concern: You also want to get back to a normal life. This includes rebuilding your credit score as fast as possible. For years as bankruptcy lawyers, we have been meeting with clients who are terrified about the future: How will you survive in a world that will judge you based on your credit score?
We’ve listened to your concerns and then we found answers that can help you greatly after filing bankruptcy.
In our research, we’ve discovered a few things:
1. If you take immediate steps to start rebuilding your credit score after a bankruptcy, you can transform your credit score 12 to 24 months after your bankruptcy has been discharged.
2. You must take these steps. Too many people decide to wipe their hands clean of credit. As time passes, instead of having poor credit, they end up with no credit. Unfortunately, no credit is just as bad as poor credit.
3. Many people get taken advantage of by “credit repair” scams that make big promises but ultimately fail to deliver.
Because our clients are so concerned about their credit, we searched high and low for the best credit education program out there. After testing the program, we learned that people that have been through 720CreditScore.com's credit program (7 Steps to a 720 Credit Score) are able to transform their credit scores, usually within 24 months of declaring bankruptcy.
With these kinds of results, we decided to make this program available to every single one of our bankruptcy clients for free.
The credit education program usually costs $1,000 for enrollment. However, we enroll every one of our bankruptcy clients into the program for free.
To gain access to this amazing credit building program, contact Middleton Law Firm today to schedule an appointment.
