The numbers are in and they look good. There were 214 business bankruptcies filed in the state of Mississippi in 2018; less than the 242 in 2017, based on the market study of Statista. This comes as a relief to many who have been facing serious financial uncertainty in a city as normally secure as Clinton, MS. However, just because the number has gone down does not necessarily imply that bankruptcy still does not occur, especially once consumer bankruptcy has been factored in.
Clinton and Hinds County
As of March of this year, Hinds County has seen around 162 bankruptcy filing, based on the data of the US Bankruptcy Court. Around 104 of that number were Chapter 7 filings. For a lot of consumers, most are unaware of what differentiates most bankruptcy chapters from each other. A chapter 7 filing is usually ideal for those that have experienced a sudden drop to their income. It usually involves the sale of non-exempt properties and assets to satisfy any creditors or monies owed. In the face of financial uncertainty, it is always best to consult a lawyer in order to navigate the process successfully.
Bankruptcy and its Fees
Depending on the sort of bankruptcy chapter filed, the fee will differ significantly. The fee to file a Chapter 7 roughly amounts to $299 while a Chapter 13 can cost around $274. It is entirely possible to have the fee for a Chapter 7 filing waived, provided that the petitioner’s income and assets fall beneath 150% of established Federal Poverty Provisions. In most cases, it is ideal for petitioners to seek further information through the Mississippi Department of Revenue so that they may be guided accordingly. The state of Mississippi has been experiencing several bankruptcies in their public and business sectors as of late.
Bankruptcy and the State of Mississippi
The occurrence of bankruptcy—especially in public sectors—are particularly troubling for everyone. In 2018, several medical establishments filed for Chapter 11 bankruptcy. One of them happened to be the Magee General Hospital which claimed that their insolvency was due in large part to several undisclosed factors. For business sectors, filing for bankruptcy is a common tactic to start the process to either sell or salvage everything. What about regular consumers though?
The Everyday Consumer
The average American carries around an average debt of $5,400, according to the data of CreditDonkey. More troubling is that 55% of them do not settle their monthly balance in full. In such cases, it would be prudent to seek aid regarding any debts. It also helps to be fully aware of how filing bankruptcy is not necessarily a thing to be feared. In Mississippi, there are events such as the 39th Annual Seminar by the Mississippi Bankruptcy Conference, Inc. They discuss updated bankruptcy laws and recent financial trends to look out for.
For this year, the realm of finances can be considered tenuous due to new tariffs and increased cost of living. Businesses and private citizens would do well to keep an eye out for any signs of financial troubles. Learning more about bankruptcy and its uses is information that can always come in handy in the future.