One of the major concerns when filing for Chapter 7 bankruptcy is whether or not you will be allowed to keep your property.
Your ability to use specific property exemptions on your bankruptcy paperwork will determine this. Because they “exempt” or “excuse” specific property from being taken, they are known as exemptions. Unless you own costly property like a house or a car, exemptions typically protect the majority of your everyday possessions.
No matter their value, many exemptions safeguard entire classes of property, such as retirement savings. Some exclusions, such as those for vehicles, only cover specified property up to a set value.
How the Bankruptcy Exemptions in Mississippi Operate
Whether you file under Chapter 7 or Chapter 13, you can safeguard any property covered by an exemption. However, nonexempt property—items not protected by an exemption—is handled differently in each chapter.
The bankruptcy trustee sells nonexempt property in Chapter 7 bankruptcy and distributes the proceeds to creditors.
All of your possessions are yours to keep in Chapter 13 bankruptcy. However, you are required to pay the greater of the equity worth of the nonexempt property in your repayment plan or your disposable income.
Additionally, for all exemptions outside the homestead exemption, spouses can double the exemption amount if they jointly own the property. Additionally, you can apply for exemptions from the federal nonbankruptcy exemption list and use the federal COVID-19 recovery rebate exemption to safeguard stimulus payments, tax credits, and child credits in bankruptcy.
Mississippi: Does it Permit Federal Exemptions?
Federal exemptions are not recognized in Mississippi.
Property exemptions vary from state to state. Additionally, some jurisdictions provide you the option to select between their own state-specific exemptions and a set of federal bankruptcy exemptions. When they do, they typically provide you the option to select the system that best suits your needs. Although some jurisdictions permit it, others forbid using federal bankruptcy exemptions.
Mississippi Exemptions
MS Statutes 21-29-257
MS Code 21-29-257 is typically used to describe police officer retirement benefits. pensions for firemen. There is no coverage limit when a single debtor files.
MS Code 25-11-129
MS Code 25-11-129 is typically used to describe retirement and disability payments for governmental employees. There is no coverage limit when a single debtor files.
MS Code 25-11-201(1)(d)
Most people cover teacher retirement benefits under MS Code 25-11-201 (1)(d). There is no coverage limit when a single debtor files.
MS Code 25-11-319 of the MS Code
MS Code 25-11-319 is typically used to cover lawmaker retirement. There is no coverage limit when a single debtor files.
MS Code 25-11-419
MS Code 25-11-419 is typically used to describe optional benefits for university personnel. There is no coverage limit when a single debtor files.
MS Code 25-13-31
MS Code 25-13-31 is typically used to cover highway patrol retirement. There is no coverage limit when a single debtor files.
MS Code 25-14-5
MS Code 25-14-5 is typically used to describe state employee benefits. There is no coverage limit when a single debtor files.
MS Code 43-3-71
MS Code 43-3-71 is typically used to describe aid for the blind. There is no coverage limit when a single debtor files.
MS Code 43-9-19
MS Code 43-9-19 is typically used to describe old age assistance. There is no coverage limit when a single debtor files.
MS Code 71-1-43
MS Code 71-1-43 is typically used to describe private pension programs. There is no coverage limit when a single debtor files.
MS Code 71-3-43
Most people insure workers’ compensation using MS Code 71-3-43. There is no coverage limit when a single debtor files.
MS Code 71-5-539
MS Code 71-5-539 is typically used to pay unemployment benefits. There is no coverage limit when a single debtor files.
MS Code 83-29-39
The majority of people cover fraternal society benefits under MS Code 83-29-39. There is no coverage limit when a single debtor files.
MS Code Sections 83-7-5 and 85-3-11.
The majority of people protect life insurance proceeds under MS Code 83-7-5 and MS Code 85-3-11. There is no coverage limit when a single debtor files.
MS Code 85-3-1
The earned income credit and tax refunds from the earned income credit are typically covered by MS Code 85-3-1. The coverage limit for single debtors filing is $5,000.
MS Section 85-3-1(b) (i)
MS Code 85-3-1(b)(i) is commonly used to cover proceeds on exempt property. There is no coverage limit when a single debtor files.
The majority of people utilize MS Code 85-3-1 (b) (ii) to describe disability compensation. Its coverage cap for single debtors filing is $4,000 per claim.
MS Statute 85-3-1 (d)
Most individuals cover motor homes under MS Code 85-3-1 (d) (one). Its coverage cap for single debtors filing is $30,000. There is a restriction on how many assets can be covered by this exemption.
MS Statute 85-3-1 (f)
The majority of people cover education savings plans using MS Code 85-3-1 (f). There is no coverage limit when a single debtor files.
MS Code 85-3-1 (g)
This is the most commonly used MS Code to describe state health savings accounts. There is no coverage limit when a single debtor files.
MS Code 85-3-1 (j)
Federal tax refunds are typically covered by MS Code 85-3-1(j). The coverage limit for single debtors filing is $5,000.
MS Code 85-3-1 (k)
MS Code 85-3-1(k) is commonly used to cover state tax refunds. The coverage limit for single debtors filing is $5,000.
MS Code 85-3-1 (e)
Most people refer to qualifying retirement plans using MS Code 85-3-1(e). There is no coverage limit when a single debtor files. There is a restriction on how many assets can be covered by this exemption.
MS Code 85-3-17
Most people cover personal injury judgments under MS Code 85-3-17. The coverage maximum for single debtors filing is $10,000.
MS Code 85-3-4
To cover unpaid wages for 30 days, followed by 75% of earnings or 30 times the federal minimum hourly rate, most people use MS Code 85-3-4. There is no coverage limit when a single debtor files.
MS Code 99-41-23 (8)
MS Code 99-41-23 (8) is commonly used to cover recompense for crime victims. There is no coverage limit when a single debtor files.
MS Code 21-29-51
MS Code 21-29-51 is typically used to describe perks for municipal employees. There is no coverage limit when a single debtor files.
11 U.S.C. § 522(b)(3)(C) (C)
Most people cover tax-exempt retirement savings under 11 U.S.C. 522(b)(3)(C). There is no coverage limit when a single debtor files.
11 U.S.C. 541(c), 5 U.S.C. 8437(e)(g) (2)
The majority of people use 11 U.S.C. 541(c)(2) and 5 U.S.C. 8437(e)(g) to cover thrift savings plans. There is no coverage limit when a single debtor files.
MS Code 85-3-1 (a)
MS Code 85-3-1 (a) is typically used to describe wildcards. The coverage maximum for single debtors filing is $10,000.
Do I Require a Bankruptcy Attorney?
Because bankruptcy is a complicated process, it’s crucial to apply for the aforementioned exemptions effectively and submit all documents as required. Please seek the counsel and help of a Mississippi bankruptcy attorney if you are considering filing for bankruptcy in Mississippi. Bankruptcy is an important issue, and you won’t want to go at it by yourself.
