A Hattiesburg, Mississippi-based attorney, Paul Castonbegan 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.

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.

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.

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.