Bankruptcy in Mississippi
Financial hardship can strike anyone—whether due to job loss, medical bills, or unexpected emergencies—and it often hits harder than expected.
It’s designed to give individuals a structured way to regain control, stop collection efforts, and begin fresh. In Mississippi, both federal bankruptcy protections and state-specific exemptions may apply.
Each type of bankruptcy—whether Chapter 7, Chapter 13, or even Chapter 11—comes with unique rules and outcomes. The right path depends on your income, your goals, and your assets.
We’re here to help connect you with experienced Mississippi bankruptcy lawyers who can provide trusted advice. Take the first step toward financial relief today.
Types of Bankruptcy in Mississippi
Bankruptcy is a legal tool that gives individuals and businesses the chance to reset their finances. It can discharge some or all of your debts, depending on your situation and the type of bankruptcy you file. In MS, you’ll need to prove you have a genuine financial hardship.
If you’re struggling to keep up, you may qualify to file under Chapter 7, Chapter 11, or Chapter 13. Each option offers different forms of relief and comes with its own set of requirements. Your eligibility will depend on factors like income, assets, and long-term financial goals.
In Mississippi, bankruptcy cases are handled by the U.S. Bankruptcy Court for the Northern and Southern Districts of Mississippi. These federal courts oversee filings based on the county where you live, with court locations in Jackson, Gulfport, Aberdeen, and Oxford.
Chapter 7 Bankruptcy
For many people, Chapter 7 bankruptcy offers a practical way to wipe the slate clean and move forward. But before taking that step, it’s important to take a hard look at your income, expenses, and ability to repay what you owe.
Chapter 7 is often used by individuals who are out of work, have limited income, or have faced a major change in their financial circumstances. While it can discharge many types of unsecured debt, you may be required to give up some property, like a car, house, or other valuable assets, as part of the process.
Filing initiates an automatic stay, which puts a pause on most collection efforts such as foreclosures or wage garnishments. However, this stay doesn’t stop every type of debt. Payments for obligations like child support or criminal restitution must still be made, regardless of your filing.
To qualify for Chapter 7 bankruptcy in Mississippi, you’ll need to pass a means test, which compares your household income to the state’s median income level. As of the most recent data, the median annual income for a single filer in Mississippi is about $52,225. If your income is below that threshold, you’re typically eligible to file.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is generally more involved than other types and is most often used by businesses or individuals with substantial assets. It gives filers the opportunity to reorganize their debts under a court-approved plan, typically structured over a period ranging from four to 18 months.
Filing for Chapter 11 bankruptcy requires careful documentation and strict adherence to court procedures. You’ll need to provide detailed financial records that outline your assets, debts, income, and a proposed plan for restructuring what you owe. These filings give the court and your creditors a clear view of your financial situation and the strategy you’re proposing to repay your obligations.
Key forms include:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B101)
- Schedules of Assets and Liabilities (Forms B106A/B through B106J)
- Statement of Financial Affairs (Form B107)
- Summary of Your Assets and Liabilities (Form B106)
- Chapter 11 Statement of Current Monthly Income (Form B122B)
- Creditor Matrix
- Executory Contracts and Unexpired Leases (Form B106G)
- Disclosure Statement and Proposed Reorganization Plan
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is commonly known as the wage earner’s plan because it’s designed for individuals with a steady income who need time to catch up on what they owe. In MS, once your case is filed, the court appoints a trustee to review your financial records, including assets, debts, and income. From there, you’ll propose a repayment plan that lasts three to five years.
The terms of your plan will depend on your financial situation—especially your income stability and the assets you want to keep. If approved and completed successfully, the plan may also result in some of your remaining unsecured debts being discharged, offering additional relief.
Unlike Chapter 7, which is typically faster and used by individuals with minimal income or assets, Chapter 13 is designed for those who earn a consistent wage and want to catch up on arrears without giving up what they own.
Compared to Chapter 11, which is often used by businesses or high-debt individuals, Chapter 13 is more streamlined and intended for personal financial recovery. It gives you breathing room and a chance to reorganize, rather than erase, your debt obligations.
The Bankruptcy Process in Mississippi
There’s rarely a perfect moment to file for bankruptcy, but if your financial situation won’t improve within the next five years, taking action now could prevent further damage. Bankruptcy can offer a structured path forward and allow you to regain control over your finances.
In Mississippi, the first step is gathering your complete financial records. This includes monthly expenses, outstanding debts, income statements, and a list of your assets. The court uses this information to assess your eligibility and determine how your case should proceed. If anything is missing or incomplete, your petition could be delayed or denied.
In Mississippi, individuals filing for bankruptcy must choose between using the federal exemption system or the state’s exemption laws, which can protect specific property from being seized during the process. Understanding which exemptions apply to your case is critical, as it determines what assets you can keep.
Mississippi exemptions include:
- Homestead: up to $75,000 in equity in your primary residence
- Personal property: up to $10,000 in household items, clothing, and appliances
- Motor vehicle: no specific exemption, but equity may be protected under personal property limits
- Tools of the trade: up to $750 for work-related tools
- Wages: up to 75% of earned but unpaid wages
- Public benefits: fully exempt, including Social Security, unemployment, and workers’ compensation
- Retirement accounts: most tax-qualified pensions and IRAs are protected
Work With an Experienced Mississippi Lawyer
If you’re living in Mississippi and feeling overwhelmed by debt, bankruptcy may offer the financial reset you need. Whether you’re considering Chapter 7 to eliminate unsecured debt or Chapter 13 to reorganize your payments, the right filing can provide lasting relief and a clear path forward.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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