How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

In Mississippi, it is important to understand the differences between Chapter 7 and Chapter 13 bankruptcy in order to determine if you are eligible for either option. Chapter 7 is typically the fastest and simplest form of bankruptcy, as it allows for debts to be discharged entirely with no repayment plan. However, it is not available to everyone; you must pass a “means test” in order to qualify. This test looks at your recent income and expenses and also takes into account the size of your household. If you make too much money to qualify for Chapter 7, you may be eligible for Chapter 13 bankruptcy. With Chapter 13, you will be required to develop a repayment plan over a three to five year period. This plan will be based on your income and expenses and designed to allow you to pay your creditors over time. In order to be eligible for Chapter 13, you must have regular income, so you must be employed or receiving financial support from another source. You also must have unsecured debts of less than $394,725 and secured debts of less than $1,184,200. If you meet these basic eligibility requirements, you may be able to file for Chapter 13 bankruptcy in Mississippi.

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How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

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