For years, student loans were considered almost impossible to erase in bankruptcy. However, in 2025, that’s changing. Thanks to updated federal guidance, borrowers in Mississippi and across the U.S. now have a better shot at getting rid of federal student loans through bankruptcy, especially if they’re struggling financially or dealing with long-term hardship.
To discharge student loans in bankruptcy, you have to prove that paying them would cause undue hardship. That means showing you can’t keep up a minimal standard of living while making payments, the hardship is likely to continue, and you’ve tried in good faith to repay the debt.
This test, often called the Brunner Test, was often extremely difficult to meet. But now, borrowers can use simpler documentation to show their situation. You no longer need years of past repayment history or perfect paperwork to prove you tried. Even one positive step, like applying for a repayment plan, may be enough.
In 2024, the U.S. Departments of Education and Justice released joint guidelines that made the process easier. Borrowers can now fill out an attestation form instead of going through drawn-out court fights. If the Department agrees you meet the standard, they may even support your request for discharge.
So far, the results are promising. As of late 2024, about 85% of processed student loan bankruptcy cases have ended in full or partial discharge. That’s a huge jump from just a few years ago when fewer than 1 in 10 were successful.
Discharging loans still requires filing bankruptcy, usually Chapter 7 or Chapter 13, and starting a separate lawsuit within the case, called an adversary proceeding. You’ll need to submit financial records and medical documentation (if relevant) and show why repayment would be unfair under your circumstances.
Borrowers in Mississippi may especially benefit if they attended a for-profit school, are living on disability income, or have faced long-term underemployment. The courts will also look at age, dependents, and your chances of earning more in the future.
If your debt feels impossible to manage, contact O’Brien Law Firm to find out if bankruptcy could be a path to relief.
Crypto mining can be expensive, especially when energy prices spike or the market crashes. Miners in Mississippi now have stronger legal protections under the state’s Senate Bill 2603. However, financial trouble can still hit fast. If you’ve racked up debt from electricity costs or equipment leases, Chapter 11 bankruptcy may offer a way to stay in business while sorting things out. Still, IRS rules and local laws add some tricky layers.
Mississippi’s Senate Bill 2603 supports digital asset mining at both the residential and commercial levels. It prevents local governments from changing zoning rules to block mining or placing special noise limits on miners that don’t apply to other businesses. Home miners also get protection as long as they follow general sound rules. No special license is required, even for businesses offering mining or staking as a service.
However, these legal wins don’t erase the financial pressure. Running powerful mining rigs around the clock costs a lot, especially when crypto prices fall. That’s where bankruptcy law comes in.
The IRS counts mined crypto as income on the day it’s created. If you mine $1,000 worth of Bitcoin, that $1,000 goes on your taxes, even if you never sell the coin or its value drops later. That means tax debt can pile up before you ever make cash.
Miners can deduct certain costs, such as power bills, equipment, and even home office space. However, those deductions don’t wipe out the original income tax. And in bankruptcy, that tax still sticks.
Chapter 11 lets you restructure debts while continuing to mine. Core Scientific, a major U.S. miner, used Chapter 11 to stay operational while cutting deals with creditors. In Mississippi, a similar filing can help you renegotiate equipment leases or electricity contracts.
Still, tax debt tied to mining income often remains. You can reorganize how it’s paid, but you can’t erase it. That’s why timing and legal support matter.
If energy bills, taxes, or equipment costs are stacking up, contact O’Brien Law Firm. We’ll walk you through the next steps and help you build a legal plan that fits your situation.
Bankruptcy laws have existed since way before crypto burst onto the scene. However, courts can still apply old rules to new technology. When someone files for Chapter 7 bankruptcy, the court may claw back certain transactions, especially if they look like an attempt to hide assets.
If a person transferred or withdrew crypto before filing, those funds could be pulled back into the bankruptcy estate. Courts can use blockchain records to find hidden funds and recover money for creditors.
In Chapter 7 cases, courts focus on transactions made before bankruptcy. If a debtor moved assets within 90 days of filing, the court may deem it a preferential transfer under Section 547 of the Bankruptcy Code. If the transfer was done to cheat creditors, it could be labeled a fraudulent transfer under Section 548.
Since crypto transactions are recorded on the blockchain, financial experts can trace where the money went. Courts then decide if those assets should be returned to the bankruptcy estate.
Crypto clawbacks aren’t as simple as recovering cash. Some of the legal questions include:
If you are facing a clawback claim, your defense might include:
If you’re involved in a bankruptcy that includes digital assets, please consider getting legal help. Contact O’Brien Law Firm, LLC, today to discuss your case and protect your financial future.
Farming and fishing are unpredictable industries. Some of the things that can leave business owners struggling to pay their debts include bad weather, market fluctuations, and rising costs. When financial trouble hits, family farmers and commercial fishermen can use Chapter 12 bankruptcy to restructure their debt while keeping their businesses running.
Chapter 12 is a special type of bankruptcy designed specifically for farmers and fishermen. Unlike Chapter 7, which requires selling assets to pay creditors, Chapter 12 lets debtors create a repayment plan while continuing operations. This plan typically lasts three to five years and allows farmers and fishermen to repay their debts based on seasonal income.
To file for Chapter 12, you must meet the following criteria:
Chapter 12 works best for those who want to keep their business running while paying off debt. However, there are a few things to keep in mind:
If debt is threatening your farm or fishing business, Chapter 12 may offer a way forward. It provides protection from creditors and gives you time to repay what you owe. Contact O’Brien Law Firm, LLC, in Southaven, MS, today to discuss your options and get the legal guidance you need.
Starting a business always comes with risks. For serial entrepreneurs in Mississippi, taking chances on multiple ventures can sometimes lead to financial hurdles down the road. When debts pile up and businesses struggle, filing for bankruptcy may feel like the only way out. However, bankruptcy is not always straightforward, especially for entrepreneurs who have started more than one business.
Bankruptcy is meant to help people and businesses manage debt, but it affects serial entrepreneurs differently. For small business owners, especially those who have started multiple ventures, bankruptcy often focuses more on personal financial issues than on saving a business.
Chapter 11 bankruptcy is one option for struggling businesses, allowing them to reorganize their debts. However, it can also trap entrepreneurs in a failing business longer than necessary. This situation is known as the “lock-in effect,” where staying with an existing business feels easier than starting a new one.
In Mississippi, entrepreneurs have several bankruptcy options to consider:
Filing for bankruptcy is stressful and complicated, but serial entrepreneurs face even more challenges.
O’Brien Law Firm, LLC, knows how challenging this process can be for serial entrepreneurs in Mississippi. Contact our team today to learn how we can help you move forward.
