Mississippi’s bankruptcy laws provide several exemptions that allow you to keep some of your valuable assets. If you own real estate, you may use a homestead exemption to protect up to 160 acres or $75,000 in your home’s equity, according to The Mississippi Bar.
You may choose the lesser of the two property values by filing a claim through the tax assessor’s office of the county in which you reside. The bankruptcy court, however, may need proof that you live in the home or use it as your primary residence. You may claim an exemption from this requirement if you have reached the age of 60.
May a retirement account qualify for exemption?
According to Mississippi’s bankruptcy codes, pensions and payments received as a result of providing public services are generally exempt from creditors. If you contributed to a 401(k) or 403(b) account, its contents may fall within the exemption regardless of current market value.
You may exempt most types of employer-sponsored retirement accounts such as a Keogh or IRA. The bankruptcy court generally exempts benefits an employer deposited into your account at least one year before filing your petition. If the value of your IRA exceeds $1,362,800, however, the court may require you to liquidate it to pay your creditors.
How much personal property may the court exempt?
As noted by the Magnolia State’s bankruptcy codes, any personal property valued up to $10,000 may qualify for an exemption. This includes vehicles, jewelry, artwork, furniture and most personal belongings. You may also exempt public benefit payments received from the Social Security Administration.
Bankruptcy laws provide petitioners with an exemption for a primary home and retirement plans. By exempting your home, you may also protect your equity. Bankruptcy offers a fresh start and it may also allow you to keep a significant portion of your personal belongings.