If Mississippi residents are like most Americans, they have some sort of credit card debt. In fact, data from the Federal Reserve shows that U.S. credit card debt exceeded $1 trillion in 2017, which is the highest in history.
A recent study by CreditCards.com analyzed financial data from America’s 25 most populous metropolitan areas. It then ranked each city by the amount of credit card debt its population carried and its debt burden in relation to its median income. The study found that the top five cities with the highest average debt are Washington, D.C., Dallas-Fort Worth, New York, Houston and San Antonio, which have debt averages ranging from $7,442 to $7,070 per person. The next five cities on the list are Baltimore, Atlanta, San Diego, Seattle-Tacoma and Denver, which have debt averages ranging from $6,985 to $6,720 per person.
To determine each city’s debt burden, the study calculated how long it would take a person to pay off the city’s average credit card debt while earning the city’s median income. The study found that the cities with the heaviest debt burdens are San Antonio, Miami-Ft. Lauderdale-West Palm Beach, Houston, Los Angeles and Dallas. The cities with the lowest debt burdens are Seattle, Washington, D.C., Boston, Minneapolis and San Francisco. It would take someone living in San Antonio, the city with the highest debt burden, 22 months to pay off their debt. Meanwhile, someone from San Francisco, the city with the lowest debt burden, could pay off their debt in just 13 months.
Some people have difficulty paying off their credit card debt. When this happens, bankruptcy may be the best option. Individuals facing financial challenges might benefit by discussing their situation with a bankruptcy attorney.
The United States Courts recently released an update on the rate of bankruptcy filings in the United States. The report focuses on a 12-month period, spanning from January 1 of 2017 to December 31 of 2017. Bankruptcy filings for the calendar year were down by 0.7 percent.
Although the rate of filings decreased, the report notes that this was the smallest decrease since 2010. The report also states that the overall number of filings was the lowest since 2006.
Importance of bankruptcy data
It is important to point out that many people still seek financial relief through bankruptcy. In 2017 there were 765,863 individual petitions for bankruptcy relief filed with the court.
The national trend did not hold true for every state in the country. There were a reported 12,398 filings in Mississippi in 2017 and 12,246 in 2016. This translates to an increase in bankruptcy filings in the state of 152.
Chapter 7 most frequent form of relief
The vast majority of these filings involved a petition for relief under Chapter 7. 486,347 filings under this chapter were reported.
Chapter 7 is a popular option due to the fact that a successful petition can result in the discharge of qualifying debts. Examples of financial obligations that often qualify for discharge include medical bills and credit card balances.
Putting together a successful petition can be a difficult task. The applicant must include various information, including financial records and a complete application. The applicant must also pass the means test.
Data can help ease the way for others in Mississippi struggling with debt
This data shows that if you are struggling to manage debt in Mississippi, you are not alone. An attorney experienced in these matters can help you overcome the hurdles that may make it difficult to move forward with a petition for relief through bankruptcy. Contact a lawyer experienced in debt relief solutions for Mississippi clients to discuss your options.
Mississippi homeowners who are struggling to pay their mortgages might be interested in learning about a couple of bankruptcy court rulings in Ohio. When people file for Chapter 13 bankruptcy, they may be able to cram down second mortgages on their homes. The rulings also found that first mortgages may sometimes be crammed down as well.
A cramdown in Chapter 13 bankruptcy means that a second mortgage may sometimes be transformed into unsecured debt, meaning that the lien against the home will be destroyed. The homeowners are then able to concentrate on catching up their first mortgages during their court-approved repayment plans, which can help them to save their homes from foreclosure. At the end of the repayment period, the remaining unsecured debt balances are discharged, including the second mortgages on the home.
A cramdown only happens when a debtor is upside-down on his or her home to the extent that no part of the second mortgage is secured by the house. In two cases in Ohio, the bankruptcy courts also found that first mortgages could be crammed down or transformed into unsecured debt when the debtors owe more on their homes than they are worth. In the case of first mortgages, the cramdown is only on the amount that is owed above the fair market value of the home. A third ruling in Ohio found the opposite, however.
The Ohio opinions allowing first mortgages to be crammed down in bankruptcy could potentially change bankruptcy law everywhere. People who are unable to make their mortgage payments might benefit by talking to experienced bankruptcy lawyers to learn whether or not Chapter 13 bankruptcy might be an option for them. Chapter 13 bankruptcy might help people to stop foreclosure and other types of collection actions so that they can get back on their feet.
Bankruptcy no longer has the social stigma it once did. However, those who are considering bankruptcy may take comfort in knowing what has caused others to seek financial relief through this legal process. Although reasons for financial struggles vary from family to family, three of the most common causes of bankruptcy that are often cited by those petitioning for relief from the court include:
A recent publication in the Chicago Tribune notes that these three factors contribute to almost 90 percent of all bankruptcy petitions within the United States.
Is bankruptcy right for me? The decision to go into bankruptcy is not an easy one. Those who are struggling financially are wise to take three different questions into account when attempting to determine if bankruptcy is right for their family. First, how much of an income or savings is at your disposal? Second, how much do you owe? Third, how much do you own in assets (home, car, business interests)?
Gather this information together and seek legal counsel. An attorney experienced in bankruptcy matters will be able to answer your questions. Questions like what can you keep in bankruptcy and how will life look after the bankruptcy process is complete.
Bankruptcy is a legal process that can help those who are struggling financially find a fresh financial start. Those who have considered this process have likely stumbled on a number of legal terms, including “automatic stay.” This term refers to a court order that is granted after an applicant is approved for bankruptcy.
What happens when an automatic stay is issued? This court order requires creditors to stop contacting you. In addition to ceasing contact, these creditors cannot file a lawsuit in an attempt to gain payment or enter a lien against your property.
The automatic stay can also stop a landlord from evicting a tenant that is going through bankruptcy if the eviction is in connection to a demand for rental payment. The court order can also stop garnishment. Garnishment is a process that allows a creditor to remove money directly from your paycheck. When you get the paycheck from your employer, the creditor would already have taken a portion of payment from the check. When an automatic stay goes into effect, the garnishment should stop.
This order also extends to include utilities. A person that is going through bankruptcy is often protected from utility disconnection.
Does the applicant need to do anything to make the automatic stay go into effect? Essentially, no. The applicant just needs to put together a successful application for relief through bankruptcy. If granted, the automatic stay goes into effect automatically (hence the name).
This is just one of the many legal terms to understand before determining if bankruptcy is the right option for you. An experienced attorney can discuss this and other terms and help you decide the best way to get back on your feet.
