Bankruptcy in Mississippi
Bankruptcy is based on federal statutes; however, many exemptions are based on Mississippi law. Under Mississippi state laws, certain personal property is exempt from bankruptcy and seizure or attachment found in Miss. Code Sections 85-3-1 and 85-3-21.
A debtor may exempt any tangible personal property up to $10,000.00 in value to include:
A) Household goods: clothing, furniture, appliances, one radio, one television, one firearm, one lawnmower, wedding rings, and certain kitchenware;
B) Motor vehicles;
C) Implements, professional books or tools of the trade;
D) cash on hand (this is not cash in a bank account);
E) professionally prescribed health aids;
F) any items of tangible personal property worth less than two hundred dollars ($200.00) each;
Disability insurance income;
Pension, annuity, or profit-sharing plans held for retirement purposes or individual retirement account;
A mobile home used as primary residence not exceeding a value of Thirty Thousand Dollars ($30,000.00);
Assets in Health Savings account;
Money paid into or applied to higher education expenses at eligible educational institutions;
Up to Five Thousand Dollars ($5000.00) of earned income tax credit,
Up to Five Thousand Dollars ($5000.00) of federal tax refund;
Up to Five Thousand Dollars ($5000.00) of state tax refund.
As to real property, a debtor can exempt up to Seventy-five Thousand ($75,000.00) in value of his homestead. In order to file in Mississippi, a debtor must live in this state for 730 days (2 years) before filing. If the debtor did not live in a single state for the previous two (2) years, the homestead will be determined by where the debtor lived the majority of this period preceding the two year period.
In additions to all other exemptions listed above, an additional exemption of property having a value of Fifty Thousand Dollars ($50,000.00) of any type to include deposits of money to Mississippi who are seventy (70) years of age or older.
No matter whether you file Chapter 7 or 13, a debtor must initiate credit counseling prior to filing bankruptcy and prior to the discharge. The credit counseling can be done over the telephone or internet.