Exempt Property

One of the most common misconceptions of filing bankruptcy is that you will lose your home, car, wedding ring, IRA, pension, etc. This is simply not true.

The State of Mississippi lays out the following property which CANNOT be liquidated or taken away from you just by filing bankruptcy:

YOUR HOME - Mississippi law provides that you can keep your home provided that you do not have more than $75,000.00 in equity in your home. This means:

Equity = Value of Your Home - Balance of Your Mortgage

As long as the Equity is less than $75,000, then you will be able to keep your home as is, even if you are behind on the mortgage. However, if you are behind on the mortgage, you are limited to filing a Chapter 13 proceeding.

YOUR MOBILE HOME - Mississippi law also provides that a person can keep your Mobile Home provided that you do not have more than $30,000.00 in Equity in the mobile home. This is calculated the same way as above:

Equity = Value of the Mobile Home - Debt against the Mobile Home

As long as the Equity is less than $30,000, then you will be able to keep your mobile home as is, even if you are behind in the payments. However, if you are behind on the payments, you are limited to filing a Chapter 13 proceeding.

YOUR CAR, PERSONAL PROPERTY, HOUSEHOLD GOODS - You can KEEP up to $10,000 for a single debtor and up to $20,000 for joint married debtors. This exemption amount includes personal effects such as wedding rings, china, kitchenware, lawnmower, television, appliances, furniture, clothes, etc. For cars, trucks, and other motor vehicles, you will look at the equity in the vehicle which is calculated the same as the equity in your home or mobile home.

YOUR IRA - You can KEEP your IRA, but you have to stop making contributions to it during the bankruptcy proceeding.

"WILDCARD EXCEPTION" - Any person over the age of 70, is allowed to keep an additional $50,000 of property, real or personal, tangible or intangible, per debtor. This means that a married couple filing bankruptcy jointly can exempt an additional $100,000.00.

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