Debtor Education Course

In the state of Mississippi, everyone who files for bankruptcy – whether it’s Chapter 7 or Chapter 13 – is required to take Pre-Discharge Debtor Education Course in order to have their debts discharged. You may not relish the idea of attending this course, but it is to your benefit. It teaches your how to properly budget and manage finances. Pay attention in this class and take it seriously if you wish to have a healthier financial future.

Budgeting

Before you reach financial independence, you need to lay some groundwork. Calculate your monthly income and then subtract necessary expenses.  This term refers to rent/mortgage payments, utility bills, insurance, food, and gas (basically anything which is essential to living).

If you find some of your expenses exceed your monthly income, see what can be reduced or canceled. Things such as premium cable packages and gym memberships aren’t a necessity. You can exercise at home or a park for free, and you can find cheaper alternatives for entertainment.

Re-establish Credit

After you’ve been able to stick to your budget for a while, the next step is to start building your credit. You can either get a secured or unsecured credit card. Don’t go overboard though. Limit yourself to only one or two cards, and only use them on things you can afford to pay back quickly. If you can’t afford vacation on your own, then don’t use a credit card for it.

Now for some final words of advice. Be sure to pay all of your bills on time every month, and don’t make major investments if they’re not necessary (A new car or home isn’t necessary if there’s really nothing wrong with what you already have). For all your bankruptcy concerns, contact us at Bosserman Law.

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Only Financially Irresponsible People File for Bankruptcy

This belief may be true in some cases, but not all. People experiencing some form of hardship are more likely to file. The factory worker who always paid their bills early may file because he was laid off six months ago and hasn’t found employment since. Likewise,the recently divorced may file to pay for the divorce and relieve joint debts.

Another common hardship is being crippled by unexpected medical bills due to surgery or an accident. Common hardships such as these can happen to anyone and bring them to this path.

All Debts are Discharged after Filing

Some debts will be discharged depending on which Chapter you file for but not all. People who file bankruptcy in Mississippi will still be required to pay child support, alimony, and certain taxes. Any debt not listed on the bankruptcy petition won’t qualify for discharge and neither will student loans. Discharging student loans is a separate matter from bankruptcy and requires documented proof of undue hardship.

Bankruptcy Ruins Your Credit for Life

It is true that for ten years after filing bankruptcy, it may be documented on your credit record. However, it will not necessarily ruin your credit forever. With the fresh start bankruptcy gives you, your credit may be in better shape than before.

You’ll likely receive credit card applications in the mail shortly afterwards. Secured credit cards with low limits are a great option to start rebuilding your credit. Just be sure to pay them on time, and preferably pay more than the minimum payment.

With all the negative perceptions surrounding bankruptcy and those who file, it’s normal to be hesitant. However, if consolidating debts or receiving debt counseling doesn’t help, then bankruptcy is your best option. To learn more about how Bosserman Law can help you reach a favorable outcome, give us a call today.

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Examine the Type of Debt You Have

Despite the common misconceptions, there are some types of debts that can not be removed from your record. These include alimony, child support, restitution for a crime and more. People with an extortionate amount of debt and no hope of paying it off completely may find Chapter 7 to be the most appropriate choice. Those disqualified from Chapter 7 by their income and looking for a relief from collection proceedings may choose Chapter 13 instead.

Determine the Desired End Result

Of course, no matter the type of bankruptcy you choose, you’ll want to finish the process with a plan to free yourself from the burdens of debt. To determine whether Chapter 7 or 13 bankruptcy is most appropriate for your needs, take a look at the details.

Are you looking to finish the process within 6 months or do you need to find a debt repayment plan, which may last up to 5 years? A timeline is important. Chapter 7 bankruptcy allows you to discharge creditors in a short time period but you may need to liquidate your assets to do so. Meanwhile Chapter 13 provides you with the ability to repay debts over a longer period of time while protecting your home and car in most cases.

Do Your Homework and Consult with a Professional

Beginning to review your options for bankruptcy is a great start. You’ll need to understand the advantages and disadvantages of each type before making a decision. However, there’s no need to go through the process alone. Having an advocate at your side makes it easy to get the results you desire and maintain your dignity.

Reach out to Bosserman Law, a debt relief agency, to find the right solution to pay off your debts while protecting yourself and your loved ones.

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