We Can Help Find Which Option Is Right For You

Chapter 7 Bankruptcy

Personal Total Bankruptcy

Chapter 13 Bankruptcy

Personal Reorganization of Debts

Chapter 11 Bankruptcy

Business Bankruptcy

Which Type of Bankruptcy Do I Qualify For?

When filing for consumer bankruptcy, clients have the choice of choosing between Chapter 7 or Chapter 13, depending on their individual situation. If you are not sure which type of bankruptcy is better suited to your needs, use the lists below to compare the two, or call us at 662-252-3224 to speak with an attorney to schedule a free consultation. We have two conveniently located offices, in Holly Springs and Oxford, to best serve our north Mississippi clients.

Don’t Have Enough Income to Pay Your Bills? You Might Qualify For Chapter 7 Discharge.

Although Chapter 7 bankruptcy lets you discharge most debts, there are certain qualifications that must be met.  One of these is the disposable income, or means test.  Our firm can get most people qualified for a Chapter 7, but the process is very complex. The benefits of Chapter 7 bankruptcy include:

  • Completely discharges your eligible debts for a true fresh start
  • Stops all collection actions against you and your property
  • Exemptions allow you to keep all of your property, in most cases
  • Ideal for those with little or no disposable income
  • Is the quickest road to a fresh start.  A Chaper 7 discharge can be granted in approximately 4 months
  • Eliminates old judgments and lawsuits that could negatively affect your credit forever
  • You can keep your house and car payments current throughout a Chapter 7 filing

Although filing for Chapter 7 will help you eliminate more debts quicker, not everyone qualifies. Check with an attorney at our office today to see if this option is available to you.

If You Don't Qualify For a Chapter 7, or are Facing Repossession or Foreclosure, a Chapter 13 is Right For You.

Chapter 13 however, focuses on restructuring your debts to allow for repayment over 3-5 years. Those who don’t qualify for Chapter 7 due to high income or being are eligible to file under this chapter of the Bankruptcy Code instead. The following lists the differences in Chapter 13 and Chapter 7: 

  • You can keep everything in a Chapter 13, even non-exempt property
  • Helps you avoid foreclosure or repossession by repaying arrearage through an affordable repayment plan
  • Best for those with a regular income
  • You have the option, but not the obligation in most cases, to repay a portion or all of your debts through an affordable re payment plan
  • Remaining unpaid eligible debts are discharged after three to five years
  • It takes 3-5 years to obtain a discharge in a Chapter 13 Bankruptcy

Note that the above are not complete lists, please consult an attorney at Schneller & Lomenick, P.A., for more detailed information on consumer bankruptcy and the different chapters to see option would be most beneficial tois best for you.

Myth Or Fact? Will I Lose Everything If I File For Bankruptcy?

The idea that you’ll lose everything when you file for bankruptcy is grossly inaccurate and is often put forth by aggressive collectors. In both types of consumer bankruptcies (Chapter 7 and Chapter 13), debtors are able to keep all of their possessions.  There are some very important exceptions to this rule, however, and we can explain exactly what that means for each individual situation. We help our clients determine which chapter they qualify for and which one will best achieve their goals. And, when possible, we help our clients retain as many of their assets as the law allows, whether they are opting into a repayment plan in a Chapter 13 or choosing to wipe out their debts completely through a Chapter 7. The law allows for the following:

  • In a Chapter 7 bankruptcy, exempted assets are protected from collections. In most cases, all assets fall under applicable exemptions. These are called “no asset” cases.  Debtors also have the option to “surrender” any collateral (houses, cars, etc,..) in full satisfaction of a debt. 
  • In Chapter 13 bankruptcy (“wage-earner” bankruptcy), debtors can pick what assets they want to retain and continue payment for.  In most Chapter 13 Cases, we are able to obtain a more affordable repayment plan for these debts.

Can Bankruptcy Save Your Business?

Yes.  Filing for bankruptcy does not mean that you have to go out of business. Though people often associate bankruptcy with failure, it can instead be the means to an end or rather a pathway to achieve something else. We often see clients who are dealing with a slump in business or who have encountered tax issues that are causing them to fall behind on their loans. In such cases, filing for bankruptcy can help rid them of certain debts or allow them to restructure and repay to remain open.

If you and your business are struggling to stay afloat, and you’re considering bankruptcy, talk to one of the attorneys at Schneller & Lomenick, P.A., today. We can assist you with the following options:

  • Assist you with filing Chapter 7 bankruptcy for yourself and/or your business
  • Guide you through filing Chapter 11 bankruptcy for your business
  • Help you deal with creditors, the IRS and taxes
  • Help you and your business get rid of unsecured debts
  • Arrange an affordable payment plan so your business can continue to operate
  • Prevent repossession of business assets

Because no two situations are alike and business bankruptcy can be so complex, it’s best to speak to an attorney to get a better understanding of your situation and what can be done for you.

We've Got The Answers

You’ve fallen behind on various payments and the bills are piling up on your kitchen table. Now, creditors are ringing your phone around the clock, and you aren’t sure how to make them stop. A bankruptcy filing mandates that all creditors must immediately cease all contact with you. That means no more phone calls, letters, or threats of legal action.  A successful bankruptcy will prevent these creditors from collecting anything forever by getting a discharge of your legal obligations to pay debts.  Though you may be concerned about the judgment of your peers, or have reservations regarding the filing process itself, our attorneys want you to know that bankruptcy is federal law designed to help those in financial hardship. Let us help you hit the reset button.  You can work closely with the attorneys of Schneller & Lomenick, P.A., at either our Holly Springs office or Oxford locations to learn more about the myths and facts of personal bankruptcy today.

No. Anyone can file a case themselves. However, because the laws for bankruptcy are so burdensome and complex, we encourage you to  consult an attorney right away if you are considering bankruptcy. Let our skillful lawyers help you determine if your debts can be discharged and how you can start the process today.

YES.  When it comes to personal bankruptcy, there are only two types that will generally concern normal consumers:  Chapter 7 and Chapter 13 bankruptcy. In short, a Chapter 7 bankruptcy fully eliminates unsecured debt, such as hospital bills, personal loans, check advances, credit cards, judgments from lawsuits, and certain taxes. Under this chapter of the Bankruptcy Code, you can keep paying secured debts, like a house or car payment, without having to worry about losing your property, in most cases. A Chapter 13 bankruptcy, more commonly known as a “wage-earner” bankruptcy, is for those with a regular income and allows you to arrange a repayment plan for your debts, if you so desire.  This type of bankruptcy also prevents the foreclosure of your home and repossession of your car or other personal property by establishing a more affordable repayment plan.  Don’t wait until it’s too late.  Declaring bankruptcy can prevent a foreclosure or repossession before it happens, but not after.

While it’s true that you cannot rid yourself of most debt related to student loans or any child support obligation, it is possible to file a Chapter 13 bankruptcy and place them into a repayment plan. Together with one of our attorneys, you can come up with a three- to five-year arrangement that works for you. Though our clients are often concerned that the court will garnish all of their wages toward a repayment plan, we only propose what you can afford, and this is different in each case. 

HELPING CLIENTS GET BACK ON TRACK

We Have Helped Others, Let Us Help You

As an established north Mississippi law firm that has assisted many clients through the personal and business bankruptcies, Schneller & Lomenick, P.A., has the experience necessary to guide you through the filing process so you can save your business.

We encourage prospective clients to reach out to us for a free consultation at either our Holly Springs or Oxford location. Use the online contact form below or call 662-252-3224 to discuss what our lawyers can do for you today.