Bankruptcy Laws in Mississippi
Bankruptcy is a hybrid system in the United States. The bankruptcy code is consistent across the entire country. This means the rules and requirements of, say, Chapter 7 bankruptcy, are the same in all states. However, some of these requirements are in terms of local norms, such as median family income. The federal government has a list of standard property exemptions, but each state also has the right to create its own list of allowable exemptions and decide whether the federal exemptions will be permitted. Besides the local rules of the courts, these exemptions and the median income test are the primary differences in bankruptcy between states.
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Identification
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Based on Article I, Section 8 of the U.S. Constitution, bankruptcy is under federal jurisdiction. This means bankruptcy proceedings take place at the local U.S. District Court. In Mississippi, this is either in the Northern District locations in Aberdeen, or the Southern District at Jackson for the Jackson, Eastern and Western Divisions or at Biloxi for the Southern and Hattiesburg Divisions (see Additional Resources below).
Means Test
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The Chapter 7 means test is based on the median annual income for that state based on the household size. These figures are published annually by the U.S. Census Bureau. In 2009, the median income for a single wage earner in Mississippi was $32,348; for a family of two, $41,934; for three, $46,470; and for four, $55,759. For each additional member of your household in excess of four add $6,900. If the median income is more than your annualized monthly income (average monthly income for the previous three months multiplied by 12), then you qualify for Chapter 7 in Mississippi.
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Filing
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According to Rule 6 of the Uniform Local Rules for the Northern and Southern Districts of Mississippi, the clerk of court has no obligation to accept a filing that is in "disarray." The attorney of a bankruptcy petitioner has the obligation to review all documents in the filing for accuracy and completeness and that they are arranged in a logical order. An original plus four copies of all petitions, statements, schedules and other supporting documents are required.
Fees
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The amount of the bankruptcy filing fee varies, but is generally due in full at the time of filing, unless the petitioner qualifies for a fee waiver because of a hardship. It is also possible to request permission to pay the filing fee in up to four installments, which must be completed within four months (120 days) of the date of filing. If given a good reason, the court can extend this deadline to 180 days. The filing fee must be paid in full before an attorney is paid for any legal services regarding the bankruptcy. There is an additional fee if the case needs to be converted from one chapter to another.
Exemptions
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The federal exemptions are not allowed in Mississippi. The state's list of allowable exemptions includes property owned and occupied (homestead) up to $75,000, excluding mobile homes unless the land on which it is located is also owned. The mobile home itself is exempt up to $20,000. Judgments in a personal injury suit are exempt up to $10,000, as are items up tangible personal property (the so called wildcard), with certain items, radio, TV, firearm, and lawnmower, limited to a quantity of one. Tools of a trade do not receive special consideration, and must be exempted as personal property.
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References
Resources
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