Mississippi Bankruptcy Laws
State and federal laws protect the process of going through bankruptcy. Bankruptcy laws are different in every state and can be rather complicated. Prior to deciding about bankruptcy, be sure you have all the information about how the laws in your state will affect you. Find answers by talking to a local bankruptcy attorney. Get a free case evaluation with an attorney in your area when you fill out the free form on this page.
When you reach the point where you simply cannot pay your bills no matter how hard you try, and where the income you make doesn’t come close to paying for the necessary expenditures you have and your minimum payments, it may be time to consider filing for bankruptcy. Mississippi bankruptcy laws is designed to offer some measure of protection so you do not lose everything in the process.
Mississippi Bankruptcy Exemptions
Mississippi bankruptcy laws allow you to keep some assets. These are known as exemptions. In Mississippi, you will be allowed to keep the following items:
- Up to $75,000 and 160 acres for your homestead
- Up to $75,000 in proceeds from selling the homestead or from insurance payment due to homestead destruction
- Up to $10,000 worth of personal property
- Up to $5,000 in federal tax return
- Up to $5,000 in state tax return
- Insurance proceeds
- Public compensation programs
- Income from any disability insurance
- 75 percent of your wages
- Life insurance being paid to another
- Some retirement benefits
- Aid to blind individuals, elderly, and disabled
- Private trust plan benefits for employees
- Up to $50,000 for any property for those over the age of 70
- Up to $10,000 for personal injury judgment proceeds
Keep in mind that you can potentially lose your car or home if the loans on them are not current, even if you want to claim the equity portion as an exemption. For car loans, you must reaffirm the loan within 45 days of your 341 meeting if you intend to continue making payments to keep the car.
Mississippi Chapter 7 Bankruptcy Law
Some Mississippi residents choose to file Chapter 7 bankruptcy. This form of bankruptcy requires residents to pass a means test, which compares their income to others in the state. If they make at or below the median income level, they may file Chapter 7, which eliminates most debts, with a few exceptions, after liquidating assets.
Mississippi Chapter 13 Bankruptcy Law
Chapter 13 bankruptcy is slightly different. This form of bankruptcy requires debtors to repay their debts under a court-supervised debt repayment plan. The goal is to restructure the debt to make it manageable for debtors to repay what they owe while still receiving protection against debt collection tactics and potential lawsuits.
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