One of the main concerns for people in Mississippi who are considering bankruptcy is how long the filings will stay on their credit report. Depending on the type of bankruptcy filed and the other specific facts of the case, the filing might be listed on a person’s credit report for up to 10 years. There are two main types of bankruptcy for individual filers, Chapter 7 and Chapter 13, and each of them has different impacts on the filer’s credit report.

Filing for bankruptcy under Chapter 7 will eliminate most personal debts, including those from medical bills, personal loans and credit cards. Any debts that are discharged via Chapter 7 bankruptcy will be noted on the person’s credit report, and the bankruptcy itself will be listed as well for a period of 10 years from the date of the filing. A Chapter 7 may negatively impact a person’s credit score by as much as 200 points, but it will also eliminate debts.

A Chapter 13 bankruptcy, also sometimes called a wage earner’s bankruptcy, will be listed on the person’s credit report for seven years. This type of bankruptcy is designed for people who have regular income and earn too much to file for Chapter 7. Over the course of three or five years, a Chapter 13 petitioner will pay back creditors according to a payment plan approved by the bankruptcy court.

People in Mississippi who are struggling to pay down debts might want to schedule a meeting with a lawyer. A lawyer who practices bankruptcy law may help by examining the client’s circumstances and suggesting options to reduce or eliminate debts. A lawyer may help the client complete pre-bankruptcy counseling and other requirements or represent the client during the meeting of creditors or other official proceedings before the bankruptcy trustee.

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