Under Mississippi bankruptcy laws, individuals have the right to file
their bankruptcy petitions as sole individuals or in joint petitions as
husband and wife. Before a petition can be granted an individual will
be evaluated. Personal income, household companions, living expenses,
and personal debt will all be considered before a petition can be
An individual's income of one year will be calculated against the
income of Mississippi's residents' income statewide. If a petition is
approved, then officials will determine which kind of bankruptcy is
best for the case. The amount an individual is eligible to pay on his
or her debts can stipulate which bankruptcy is an option.
Those who can pay one hundred dollars a month but no more are eligible
for Chapter Seven bankruptcy, which is for more severe bankruptcy
cases. Those who can pay more than one hundred dollars but not one
hundred sixty are usually assigned to Chapter Seven bankruptcy.
Individuals who can pay one hundred sixty dollars or more a month on
their current debts are eligible for Chapter Thirteen bankruptcy, which
is for moderate bankruptcy cases.
Chapter Seven Bankruptcy
Chapter Seven bankruptcy allows individuals to liquidate portions of
their property to be used to pay creditors. Because this process takes
a maximum of six months, foreclosure can be stopped in a timely manner.
A trustee will liquidate all the non-exempt property and use the
compensation for paying the outstanding debts. Property that can be
exempt includes motor vehicles, homes, business partnerships, and other
forms of real estate. The property will be evaluated to determine the
estimated value and sold for as high a price as possible.
Mississippi Property Exemptions
Each state has its own chart for bankruptcy exemptions. Mississippi's
includes nine different categories that are separated by value amounts.
Mississippi exemption categories include, wild card, tools of trade,
homestead, pensions, insurance, miscellaneous, public benefits,
personal property, and wages. These exemptions are also classified by
their equity and the remaining amount owed.
Despite having property exemptions, some debts themselves are not legal
to eliminate. These include alimony, student loans, taxes, and child
support payments. The equity of a property can be covered by exemptions
if all the current payments are up to date, payments are made on time,
and if the loan is secure.
If a property does not fall under one of the exemption categories and
an individual desires to keep the property from liquidation, he or she
is required to pay the property's value to the trustee as if the
property were to be otherwise sold. Mississippi citizens also have the
right to choose federal exemptions over choosing Mississippi exemptions
if they do desire.
Chapter Thirteen Bankruptcy
Chapter Thirteen bankruptcy creates a payment plan for each individual
case upon evaluation of income and extraneous expenses. The payment
plan will designate how much needs to be paid each month for all debts
to be eliminated in a maximum of five years. In this kind of bankruptcy
all debts will be relieved using an individual's personal income.