Mississippi Consumer Help Blog

Does my spouse have to file bankrutpcy with me?

Published on: November 28, 2012 | Frank Coxwell

No. There may be reasons why it would benefit you both to file together, but the choice is yours individually to make. You cannot be forced to file with your spouse and likewise, you cannot force your spouse to file with you. When you file alone, you are filing “individually”. When you file together, you are filing “jointly”. Everyone’s situation is unique and depends on the type of debt you have and whether or not you both are responsible for the debt, etc. It is important to review the possibilities of filing individually vs jointly to see which way would benefit you both the most.

Do I have to report my spouse’s income if I’m filing alone?

Published on: November 28, 2012 | Frank Coxwell

If you are filing bankruptcy as an individual (not jointly with your spouse), yes, you must still report your spouse’s income. However, this in no way includes your spouse in the filing. The court simply looks at your total household income for calculating eligibility (Means Test) and for your post-bankruptcy household budget (schedule I and J). Even though your spouse is not filing with you, it is highly recommended that you both participate in the consultation so that both of you understand the process and requirements. And as mentioned before – have decided that the best strategy for addressing your financial situation is to file individually.

There is an exception to this though if you are married but separated. If you and your spouse are separated, your total household income is your income. If your spouse is paying domestic support, you will need to include that in your totals.

Fox 40 AM Show Guest Attorney Frank Coxwell

Published on: October 26, 2012 | Frank Coxwell

To review the various clips of attorney Frank Coxwell’s appearances on the Fox 40 AM Show, click here to go to our Media page. Mr. Coxwell discusses multiple topics on the show – the garnishment process, how to stop foreclosures in Mississippi, how to deal with student loans, the pitfalls of the new “business” credit card offers, and more.

Mississippi Garnishment Law

Published on: October 11, 2012 | Frank Coxwell

In order for a creditor to garnish your wages, they must first file a lawsuit regarding the debt in question and receive a court judgment in their favor (win the lawsuit). Once this occurs, they will receive an order of garnishment also referred to as a writ of garnishment. This order is sent to your employer who must hold this writ of garnishment for 30 days. The reason a 30 day hold requirement was placed into the process is to allow time for the employer and the employee to verify that the order is for the correct person, etc. The problem is that employers are not required to notify you that they have received an order of garnishment. They may simply hold it and you will find out 30 days later when your first check is garnished.

It’s important to note that a garnishment is applicable to any money in possession of a third party (ie: your employer, your bank, etc). It’s not limited to only what you earn. Wage garnishment is simply the most common form of garnishment.

Garnishment is an option for a creditor for any type of debt that results in a judgment in favor of the creditor. Lawsuits for breach of contract or to collect debts owed for cars, medical expenses, promissory notes, etc are all applicable. Even debts relating to taxes and domestic support obligations (child support or alimony) can lead to garnishment.

General Loan Limits & Costs for Payday Loans

Published on: September 23, 2012 | Frank Coxwell

Under the Mississippi Check Cashers Act, the maximum amount you can borrow is $400. For example, a borrower writes a check for $400, pays the $72 fee, and receives $328 in cash. You may have more than one payday loan with a lender; however, the total amount may not exceed $400 (including the fee). It is illegal to write a payday check for more than $400.

Mississippi law allows a lender to charge no more than $21.95 for every $100 dollars borrowed. It is illegal to renew, extend or rollover your payday loan by just paying the fee. The payday loan must be completely paid in full before you can enter into another payday loan transaction.

If your check is deposited and returned unpaid, the lender may charge you only 1 NSF fee and only if it was disclosed in the agreement. If the court awards a judgment to the lender against you as a result of your returned check, the lender may recover court costs, attorney’s fees as well as any court awarded fees.

Can someone be arrested if they cannot repay their payday loan?

Published on: September 23, 2012 | Frank Coxwell

NO!!! The lender cannot threaten or use criminal prosecution to collect. However, the lender may file an action against you in civil court. If you cannot repay the loan, you may request that the lender place you on a payment plan. However, the lender is not legally required to grant your request. If you wish to file a complaint regarding a payday loan vendor in Mississippi, please call either or both of the following offices:

Department of Banking & Consumer Finance – 1.800.844.2499

Consumer Protection Division of the Office of the Attorney General – 1.800.281.4418

FCRA Gives Identity Theft Victims Specific Rights

Published on: September 12, 2012 | Frank Coxwell

The Fair Credit Reporting Act (FCRA) provides specific rights to consumers who are or believe they are the victim of identity theft. If someone uses your name, Social Security number, date of birth, or other identification without the authority to do so in order to commit fraud, it is considered Identify Theft. For example, if someone used your personal information to get a loan or to get a credit card, they may have committed identity theft.

Here is a short summary of these rights that were designed to help you recover:

You have the right to ask that nationwide consumer reporting agencies place “fraud alerts” in your file to let potential creditors and others know that you may be a victim of identity theft.

Can bankruptcy help with debts from willfull and malicious injury?

Published on: September 7, 2012 | Frank Coxwell

Willful and malicious injury debts are rare, but they happen when someone has placed a claim against you, stating that you intentionally hurt them or their property. In the Fifth Circuit Court of Appeals (which includes Mississippi), a “willful injury” is one where the debtor purposefully caused the injury, and didn’t just purposefully perform the act that resulted in harm to the person or property. A “malicious injury” is when injury results “without just cause or excuse”.

You can discharge (wipe out) debts for willful and malicious injury to property in a Chapter 13 bankruptcy but not in a Chapter 7.

You can discharge (wipe out) debts for willful and malicious injury to a person in a Chapter 13 but the Chapter 13 must be filed before the state court action has gone to judgment. You cannot discharge (wipe out) this type of debt in a Chapter 7.

FCRA Summary of Rights

Published on: August 24, 2012 | Frank Coxwell

The federal Fair Credit Reporting Act (FCRA) was created to promote accurate, fair, and private filing of information by consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (those that sell information about check writing history, medical records, rental history, etc). Most familiar to everyone are the 3 national credit bureaus: Experian, Equifax, and TransUnion. Here is a summary of consumer’s major rights under the FCRA:

You must be told if information in your file has been used against you.
You have the right to know what is in your file.

Offering 2 Classes in 2012 Fall Millsaps Community Enrichment Series

Published on: August 11, 2012 | Frank Coxwell

I will be teaching in the Millsaps College Community Enrichment program – 2012 Fall Series that is open to the public. I will be hosting 2 sessions under the section “Money & Business”. Click here to register.

“Who Owns your Home? Mortgage Securitization in Mississippi” will be a 2 class session

Oct 4 & Oct 11 from 6:00pm – 8:00pm. Millsaps Tuition Cost: $40.00 per person.