- Mississippi debtors have 90 days to serve creditors with notice of bankruptcy filing.bankruptcy 2 image by Sorin Alb from Fotolia.com
Mississippi bankruptcy court rules govern the requirements consumers and business owners must meet to comply with the state's several bankruptcy options, such as chapter 7 or chapter 13. The courts also govern how creditors may appeal to the court or trustee charged with overseeing a given bankruptcy case to deny a consumer bankruptcy protection. - In accordance with federal bankruptcy law, Mississippi courts are obligated to conduct means testing for all consumers that apply for chapter 7 bankruptcy protection. The court uses this test to determine your financial eligibility for chapter 7 bankruptcy based on the strength of your ability to actually repay your debts. If the court rules that your income is below the median level for Mississippi residents, you will be ruled eligible for chapter 7. If you are not ruled eligible, you may still be able to file for chapter 13 bankruptcy.
- A first meeting of the creditors is conducted 20 to 40 days after bankruptcy proceedings have been approved by the court. The rules of this hearing dictate that it be presided over by the bankruptcy trustee empowered by the court to oversee the particular case. Your presence at this hearing is required by the court. Your only obligation at the hearing, however, is to answer the questions of the trustee truthfully. By rule, creditors have 60 days after conclusion of the hearing to appeal to the court to not allow you to enter into bankruptcy.
- The Mississippi Bankruptcy Court allows you to keep certain assets through the bankruptcy process. You may retain up to 160 acres of a homestead valued at $75,000, proceeds from the sale of a home or insurance payout valued up to $75,000, personal property totaling $10,000, federal and state tax refunds up to $5,000 each, 75 percent of your wages, insurance proceeds, worker's compensation and certain retirement benefits. In chapter 7 bankruptcy the rest of your assets beyond these amounts will be used by the court to pay your debts prior to the remainder being dissolved. Business and home owners who file for chapter 13 bankruptcy are allowed to keep homes and businesses, while bankruptcy repayment plans remain in compliance.
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