Bankruptcy Rules in Mississippi

The U.S. Bankruptcy Code contains uniform bankruptcy rules for the entire country. There are certain elements of the rules, however, that can vary by state. Each state has at least one bankruptcy district (Mississippi has two), and each bankruptcy district has its own local rules that specify how petitions should be filed and fees paid. Additionally, each state determines what property can be exempted from the bankruptcy process to prevent a debtor from slipping into abject poverty. Finally, the means test, which determines whether a debtor can file for Chapter 7 protection, is based on the family median income for the state.

Identification

The Southern District of Mississippi has offices in Jackson, Gulfport and Biloxi. The Northern District has locations in Greenville, Oxford and Aberdeen. Each county is assigned to a particular divisional office where hearings are held. But cases arising in the Northern District of Mississippi must be filed in Aberdeen. Cases arising in the Southern District are filed in Jackson, except for the Southern and Hattiesburg divisions of the Southern District, which file at Biloxi.

Means Test

According to official data published annually by the U.S. Census Bureau, the median income for a single wage earner in Mississippi for 2009 was $32,348. For a family of two, median income was $41,934; for three, $46,470; and for four, $55,759. To file for Chapter 7, a debtor must have an annualized monthly income below the median family income of the state. To calculate the median family income for households larger than four, add $6,900 for each additional member.

Filing

Unlike many states, where each bankruptcy district has its own local rules, the two Mississippi districts operate under a single set of unified rules. These rules do not mandate electronic filing, as other states do, but requires an original plus four copies of a Chapter 7 or Chapter 13 bankruptcy petition, including schedules, statements and other supporting documents. The clerk is not under any obligation to accept petitions in disarray. In the Northern District, the case matrix, a document that contains the names of the parties (including creditors) and their counsel, is read by an optical scanner and converted to an electronic database. The matrix in this district must therefore comply with the format specifications for this system, and should not contain the name of the debtor or the debtor's attorney.

Fees

Filing fees are due to the Clerk of Court at the time of filing in Mississippi. For Chapter 7 the fee is $299; for Chapter 13 it is $274. Upon request, a debtor is permitted to pay the fees in up to four installments, provided he does not compensate his attorney until the filing fee is paid in full. The final installment must be made within 120 days of filing unless the court grants an extension to 180 days from filing. Additional fees are due if the case is converted from one bankruptcy chapter to another.

Exemptions

Mississippi allows bankruptcy debtors to use the list of federal exemptions. Alternatively, debtors can claim state exemptions, which allows debtors to exempt $75,000 in value for a homestead up to 160 acres. A mobile home, trailer, or similar residence can be exempted up to $20,000 in value. Up to $10,000 in miscellaneous personal property can be saved from liquidation, as can most pensions, public benefits, insurance benefits and certain annuity proceeds. Seventy-five percent of a worker's wages are also exempted under the bankruptcy rules in Mississippi.

References

• Bankruptcy in Mississippi
• Uniform Local Rules

Resources

• Northern District of Mississippi
• Southern District of Mississippi