How to Be Judgment Proof in Mississippi
In most circumstances, an unsecured creditor has the ability to attach the property of a debtor and liquidate it in order to satisfy his debt. However, under Mississippi law, the debtor to an unsecured creditor has the right to exempt certain property from attachment. A debtor who is able to exempt all of his property is commonly referred to as a "judgment proof" debtor.
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Instructions
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Understand the difference between a secured creditor and unsecured creditor. Under Mississippi law, an individual can only be "judgment proof" from an unsecured creditor. An unsecured creditor is a creditor that does not possess a security interest in property of the debtor. Common unsecured creditors include credit card companies, hospitals and judgment creditors. Common secured creditors include a bank that issues a mortgage or a loan for an automobile. Additionally, Mississippi law does not allow a person to be "judgment proof" from the collection of state tax, federal tax and child support.
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Maintain less than $75,000 of equity in a stand-alone home or less than $20,000 of equity in a mobile home or trailer. Under Mississippi law, a person can claim an exemption from unsecured creditors of up to $75,000 for any owned land or $20,000 for a mobile home. If the home or mobile home is worth less than the exemption amount, an unsecured creditor cannot force the sale of the property. If the property is worth more than the exemption amount, the unsecured creditor can force the sale of the property, but the debtor is permitted to keep up to the exemption amount in proceeds. If you own a mobile home in Mississippi, the higher exemption for owned land may make it prudent for you to purchase the land where your mobile home is sited.
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Maintain less than $10,000 in personal property allowed under the Mississippi Code. Exemptible personal property under the Mississippi Code includes one automobile, one radio, one television, clothing, appliances, linens, kitchenware and personal effects.
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Make less than 30 times the minimum wage in take-home wages or live off sources of public income allowed under the Mississippi Code. Under the Mississippi Code, a person making less than 30 times minimum wage may not have his wages garnished by an unsecured creditor. If a person makes more than 30 times minimum wage, an unsecured creditor may only garnish up to 25 percent. Additionally, an unsecured creditor may not garnish SSI payments, veterans benefits, disability, workers' compensation benefits, pension payments and personal injury judgments of up to $10,000.
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Make a Declaration of Exemptions with the clerk of court where your creditor has obtained a judgment against you. You can obtain a Declaration of Exemptions form from the clerk of court where the case is pending. On the Declaration of Exemptions form, you will need to list any homestead or mobile home exemption elected, as well as a list of any personal property and sources of income.
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