2. A Hattiesburg, Mississippi-based attorney, Paul Caston
began practicing law two decades ago. He founded
his private Hattiesburg office, Paul Caston Attorney at
Law, PLLC, in 2009. Maintaining memberships with the
National Association of Consumer Bankruptcy
Attorneys, Mississippi Bar Association, and National
Bankruptcy Institute, he provides consumers with
debt relief alternatives, including filing for bankruptcy.
Whether it is keeping one’s home from foreclosure or
eliminating harassing collection calls, filing
bankruptcy has many advantages to those in
financial distress. But before taking the steps toward
completing bankruptcy paperwork, a consumer
should consider the following.
3. 1. The type of debts covered and not covered
under bankruptcy. While outstanding loans on
homes and automobiles are covered under
this form of debt relief, bankruptcy does not
relieve a person from repaying these debts if
the debtor chooses to keep the property.
Instead, bankruptcy can extend the time for
repayment and reduce interest rates, making it
easier to pay back a loan. Most credit card
debt is eligible for discharge, while child
support and other domestic support
obligations cannot be discharged.
4. 2. How it will affect cosigners. Filing a Chapter 7
bankruptcy does not protect a cosigner; rather, he or she
is still responsible for the remaining amount not paid in full
by the debtor. Conversely, a Chapter 13 bankruptcy does
offer some protection for cosigners if the debtor is
proposing to pay the debt through his Chapter 13 Plan.
This form of relief is referred to as the "co-debtor stay".
3. The effect of bankruptcy on retirement. If a debtor files
for bankruptcy, he or she may rest assured in knowing that
almost all retirement accounts, life insurance policies, and
pensions are exempt from the claims of creditors. The
United States Supreme Court has recently held, however,
that IRAs that have been inherited by the debtor from
another individual are not exempt.
5. Paul Caston Attorney at Law, PLLC, in
Hattiesburg, Mississippi, is a debt relief
agency as defined by federal law. The
office helps people file for relief under
the bankruptcy code.