Mississippi Bankruptcy Laws
The state of Mississippi is divided into two bankruptcy districts: Mississippi Northern Bankruptcy Court and Mississippi Southern Bankruptcy Court. These courts serve the entire state of Mississippi. Most people in Mississippi file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK.
Mississippi Bankruptcy Exceptions
Exemptions are laws passed by every state that allow you to protect certain types of your property from your creditors when you file bankruptcy. According to the Lawyers.com website, under Mississippi bankruptcy laws, you may keep:
- Homestead to 160 acres and $75,000
- Proceeds from sale of homestead or insurance proceeds from homestead destruction to $75,000
- One mobile home, trailer, manufactured housing or similar type dwelling used as a primary residence to $20,000
- Personal property to $10,000
- Worker's compensation
- Unemployment compensation
- Insurance proceeds
- Income from disability insurance
- 75% of wages
- Life insurance payable to another
- Personal injury judgment proceeds
- Crime victim's compensation
- Certain retirement benefits
- Deferred compensation program for Mississippi state employees
- Aid to blind
- Old age assistance
- Aid to disabled
- Employees' private trust plan benefits
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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