The cost of oil and gas inches skyward. Retail prices are following suit. Even with a solid job market, wages are not rising as fast. Many employed find that they are still unable to save earnings week to week. Because of this an unplanned medical event or a household disaster such as a pipe flood, plumbing mishap, or cooling system casualty and crash a families budget and redirect earnings away from the necessaries of life such as food, a place to live, transportation, clothes, medicine and continued medical treatment. Compounding this mix are the ongoing more or less fixed expenses of operation a household. While not a perfect solution, Chapter 7 and Chapter 13 bankruptcy may be a useful tool in financial planning. Chapter 7 or fresh start eliminates credit card debt, check cashing loans, medical bills, lawsuits involving collections and garnishments, repossessions, and in other cases lets you get out of home mortgages, and automobile payments. However, you will need to find other transportation and a place to live. Chapter 13 will help if you are behind on a mortgage, facing foreclosure or repossession. It permits you to continue payments as schedule and allows you to payoff the arrearage or catchup over the life of the Chapter 13 plan. Call me to schedule a brief consultation. TK for BK.


Chapter 13 allows the debtor time to reorganize and propose a plan to pay secured and unsecured creditors. if behind on a mortgage payment or car payment or both a chapter 13 may be the only choice that will preserve the collateral. Chapter 7 is often used if the debtor plans to abandon and discharge the debt on the collateral and surrender the same to the creditor. Chapter 7 also stops foreclosure and automobile repossession but is limited in what steps the debtor takes next. Creditors that feel insecure will ask the Court to return the property from the debtors possession. This creates a resolve or lose the collateral situation for the debtor. Often the creditors may ask for insurance coverage or other conditions to help secure the value of the collateral. Once a car is repossessed, it may be recovered but if is more difficult. The location of the car must be determined and release forms executed. If the house is foreclosed on, it is too late in all but the most rare cases to recover the collateral. Most debtors are not in a good financial picture at the time of filing. They are stressed from employment, choices of how to spend their income, how to pay for the necessaries of life and such. If they are supporting a family the obligations become stretched and stressed. before it become that stressful, consult with T. K. Byrne. .


As summer approaches, gas prices rise and the lure of a summer vacation or holiday pulls at families. All too often the costs of the summer outing is put on credit cards at high interest rates with meager thought on when the bill comes due. It is usually at the end of summer about the time the back to school sales and school clothing purchases are incurred. The credit card debt may also arise from a check payday loan at an annual interest rate of 360 per cent. They encourage borrowers to keep rolling the pay day loan over and over. Eventually in a shot time a $400.00 loan becomes astronomical and is not able to be paid in full ever. Couple this with a car payment, medical expenses and a consumer and or their family costs exponentially skyrockets. The debtor becomes numb to the debt and no longer responds to the creditor who then files a lawsuit and obtains judgment against the purchaser. The next step by the creditor is garnishment or asset seizure. Most opt for garnishment which can wipeout a family budget plan and hit grocery and living expenses. While most families roll with the hits, their is a option to wipeout these debts and obtain a fresh start through Chapter seven or Chapter 13 bankruptcy. It allows a debtor some initial breathing room to figure out a liquidation plan or repayment plan. Garnishments are stopped and discharged in most cases and judgements are wiped out. Unsecured debts are often discharged giving the debtor a fresh start. Secured debts are either paid for or given back and discharged. The process takes a skilled review of the debtor’s complete financial picture. Also note the Chapter 7 and Chapter 13 stops foreclosures and repossessions. However the creditors of these debts are paid or the collateral is abandoned and the debt discharged. Repossessions put a worker afoot and without a reasonable means to get to their place of employment.


A Chapter 7 bankruptcy is the quickest and generally most painless way to eliminate credit card debt, loan debts, mortgage debt, automobile debt, medical bill debt, check cashing loan debt, loan company debt. Chapter & requires complete disclosure of everyone you owe money to whether or not you intend to pay them back. The creditor gets notified you have filed a Chapter 7 and the debt is eliminated in all but some cases. A complete analysis of your credit and asset situation at the time of filing is important and necessary to the debtors case. If the debt is secured, the collateral is either returned or arrangements are made to continue paying. Student loans and federal taxes owed within the last three years are generally non did-chargeable in Chapter 7. Often the creditor will send a 1099 Q to the debtor after completion of the bankruptcy. This informs the debtor the debts was reported as a loss by the creditor and a gain to the debtor. Nevertheless, the IRS code lets this not count as gain if discharged in bankruptcy. Just remember TK for your BK. Consultations for Chapter 7 or Chapter 13 bankruptcy are free whether in person or over the phone. Call 601-925-9482 or email for your appointment.

Older Debts and Past Repossessions

Although there are published methods of cleaning your credit reports of incorrectly reported information, it is not a guarantee that the matter gets resolved at all levels. Credit collection agencies and debt collectors purchase old debts for pennies only to turn around and renew collection efforts of debts that may have past a statute of limitations with the original creditor. It is often not worth the time and effort to wrangle with these unscrupulous characters and many attorneys do not see merit in pursuing battle against them on clients behalf without the guaranty of paid attorney fees while the matter churns through the state courts. A chapter 7 will eliminate the old debts and even wipeout repossessions from past due vehicle surrenders, repos, or turn ins. A Chapter 7 is a debt elimination and zeros out unsecured debts collectors often suspiciously resurrect. Chapter 7 stops repossessions, lawsuits, garnishments, collections, and liens in most cases. It is a United States Constitutional protection available to those qualifying individuals, businesses, and also married couples. It protects your assets from being attached and seized. The Chapter 7 is an orderly process and involves disclosure and truthful answers by the filers.

Foreclosues Repossessions Divorce and Bankruptcy

All too often Divorce and financial problems go hand in hand. Money , How to spend it , who creates the budget, joint accounts and elements of trust all converge into the marriage dynamic. Unfortunately, this mix all too often ends poorly in conflict , stress, and recrimination. While Chapter 7 and Chapter 13 do not solve the underlying marital issues, they may provide an alternative to the stress and money problems couples experience. Both bankruptcy’s eliminate debts but in different ways. For most the Chapter 7 is the best way to proceed. It eliminates credit card debt, check cashing loans, loan debt and much secured debt such as a house , automobile, furniture note, appliance note. This does not mean the bankruptcy filer gets free goods. It provides an opportunity for the debtor to select what they can afford or wipe out all debts and provide a fresh start to their financial picture. There is life after Chapter 7 and/or  Chapter 13. The filer rebuilds his and her credit incrementally through better choice management and the understanding that they have a new start free of debt. They often find more disposable income and are less likely to make the same choices that lead to the filing . Nevertheless, medical issues, job loss and economic slowdowns are real world factors that may have brought about the cascade of debt. Bankruptcy law is here to provide the debtors protection from foreclosure, automobile repossession, property seizure and creditor harassment. TK for BK.


Chapter 7 and Chapter 13 both prevent foreclosures and repossessions. However the Chapter 7 is used when the debtor either can get current or desires to surrender and discharge these debts, along with medical bills, credit card debt, loan companies, check cashing companies and some times federal income taxes in limited situations. Chapter 13 is a repayment plan for past due mortgages and car payments. The interest rate with the car will drop in many cases to 6 per cent over the 60 month or less plan period. The mortgage arrearage also gets repaid over the plan period in smaller chunks than most creditors afford. Chapter 7 and Chapter 13 are unique constitutional guarantees. The chapter 13 sends out a wage order, not garnishment, to your employer to pay the plan expenses. You cannot get fired for filing either bankruptcy. Debtors will need to disclose income,, debts, all real and personal property , retirement accounts and apply the exemptions that these items of property are permitted under Mississippi State law.

Chapter 7 and Chapter 13 and taxes

Taxes and Chapter 7 and Chapter 13 are not a complicated matter provided the debtor is a regular tax filer. It is the omission of filing taxes that appears more significant in bankruptcy than owing or paying. Provided you file your taxes every year and have not falsified any of the contents Chapter 7 may eliminate older tax debts and Chapter 13 will help you pay those tax debts. maybe at reduced or zero interest . This applies to federal taxes and not state taxes. If a levy has been filed on your property (personal or real) then that is a secured debts and will need to be paid for the levy to be removed. The levy removal may be negotiated depending on the debtors unique situation. However, it is advisable not to let a levy action occur. The IRS and US Attorneys Office will be thorough with thier tax scrutiny of your filings. Properly filed tax returns over three years of age with debt maybe discharged in Chapter 7 or Chapter 13 bankruptcy.

Feeling Overwhelmed by Credit cards and medical expenses

Every month the bills arrive in your mailbox or email account. They are relentlessly arriving like clockwork. All to often we find ourselves overwhelmed by circumstances beyond our control. medical expenses from accidents, health problems, genetic issues all require expensive and sometimes extensive medical care and treatment. we reach for our credit cards, if we are fortunate to have them for initial payment and all too often long term payment which may be astronomical. The bill may come due but not today. If you make partial or small payments the interest on the cards will eat up you catch up ability. As they take more of your household income , it becomes a burden on a household budget. Electricity and food costs may be reduced but not eliminated. Gasoline and entertainment will be reduced but not eliminated. Rent is fixed , as is a car payment for a period of time.  It is a matter of choice but in reality, your necessaries of life expenses are more important. Chapter 7 bankruptcy discharges/eliminates these credit card and medical expenses. It also eliminates other expenses, Stops garnishments, lawsuits , repossessions, foreclosures if you want to eliminate and give up those possessions.

New Year Fresh Start

As the new year  2018 commences, many new year resolutions are viewed and set. Getting out of debt is one resolution many make. Chapter 7 can provide a means to a fresh start with existing debts and life style spending miscues. It will stop garnishment, lawsuits, collection calls and often provided the debtor with a legal mechanism to write off secured and unsecured debts. While this will not free you of your student loans or federal/state income tax debts, it does clear your expense sheet and frees up income for other choices like savings or retirement, The old stigma of Chapter 7 does not seem to exist in this day and age. Many Creditors evaluate new debt quite differently than before. With depressed interest rates they are willing to take chances of debtors coming out of Chapter 7 for the necessaries of life at terms and conditions new to the world of credit.