At Davis & Davis, PLLC, we understand that many Mississippi residents worry that filing for bankruptcy means losing their home or car. Mississippi bankruptcy exemptions are designed to protect your most important property so you can secure a fresh financial start. With decades of experience guiding clients through Chapter 7 and Chapter 13 cases, our trusted bankruptcy attorneys help make the process easy and stress-free. This 2025 guide explains how exemptions and protections work in Mississippi and how Davis & Davis, PLLC supports you every step of the way.
Mississippi requires you to use its state exemption list, using rules detailed in the Mississippi Code, Title 85, Chapter 3. The right exemptions allow you to protect your home, vehicle, household goods, and more from creditors in both Chapter 7 and Chapter 13 bankruptcy.
Yes, many Mississippi homeowners are able to keep their primary residence when filing for bankruptcy, thanks to the state’s homestead exemption. Under Mississippi Code § 85-3-21, you can protect up to $75,000 in equity in your home or up to 160 acres of land, as long as the property is owned and occupied as your primary residence.
This exemption:
Yes, most Mississippi residents can keep their car when filing for bankruptcy by using the state’s personal property exemption found in Mississippi Code § 85-3-1. This law allows you to protect up to $10,000 in total personal property, which includes motor vehicles, household items, tools, and more.
You can protect up to $75,000 in equity or 160 acres of residential land through the Mississippi homestead exemption, as long as it’s your primary residence.
Mississippi allows up to $10,000 per filer in personal property, including vehicles, furniture, and other belongings, under the personal property exemption.
Most tax-qualified retirement accounts — such as 401(k)s, pensions, and IRAs — are fully protected under 11 U.S. Code § 522, as long as they meet IRS requirements. Employer-sponsored plans governed by ERISA receive additional federal protection from creditors.
Social Security benefits are fully protected from creditors and bankruptcy under federal law, meaning they cannot be seized, garnished, or included in a bankruptcy estate. Other public benefits like unemployment and disability compensation are also generally exempt under 11 U.S. Code § 522(d)(10).
Unsure What Qualifies?
If you’re not sure what qualifies for protection, schedule a FREE bankruptcy consultation with Davis & Davis, PLLC. We’ll help you identify which assets are safe and how to maximize your exemptions based on the latest Mississippi laws.
| Feature | Chapter 7 | Chapter 13 |
| Type | Liquidation | Repayment Plan (3–5 years) |
| Home/Car | Keep if exempted | Catch up on payments and keep |
| Payment Plan? | No | Yes, must pay back arrears on secured debts |
| Speed | About 3–4 months to discharge | 3–5 years until discharge |
| Who Qualifies? | Must pass means test (under income threshold) | Regular income sufficient to make plan payments |
Which Option Is Right for You?
Chapter 7 is often the faster route to debt relief, especially if you have limited assets that fall within exemption limits. Chapter 13 may be a better fit if you're trying to save your home or car and need time to catch up on payments. Consult a Bankruptcy Attourney to find the best solution for you.
Exemption laws in Mississippi determine which assets you can legally shield from creditors during bankruptcy — from homes and cars to retirement accounts. These protections are built into the state code and play a critical role in the outcome of both Chapter 7 and Chapter 13 filings.
At Davis & Davis, PLLC, our experienced Mississippi bankruptcy attorneys work closely with you to understand your financial goals and protect the assets that matter most. We’ll help you:
Your path to financial freedom starts with a FREE, no-obligation bankruptcy consultation. We’re here to guide you every step of the way, with clarity, compassion, and confidence.
Can I keep my house if I file Chapter 7 bankruptcy in Mississippi?
Yes. Mississippi’s homestead exemption protects up to $75,000 in equity as long as it’s your primary residence.
Will I lose my car if I file for bankruptcy?
Typically not.
What assets are protected in a Mississippi bankruptcy?
You may be able to protect your home, car, household items, retirement accounts, and public benefits if their values fall within the state’s exemption limits.
Bankruptcy isn’t about losing everything, it’s about building a path forward. With the right legal guidance, you can keep your home, your car, and your peace of mind. Davis & Davis, PLLC is here to help Mississippi residents make informed, confident decisions about debt relief.
Contact Davis & Davis, PLLC today at (228) 275-9922 for a FREE Bankruptcy Consultation, and take the first step toward lasting financial freedom.
As tax season approaches, many Mississippi residents facing IRS debt are searching for relief options. Bankruptcy is often considered a last resort for those overwhelmed by financial obligations, but can it eliminate tax debt? The answer depends on several factors. While some tax debts may be discharged through bankruptcy, others remain non-dischargeable. Understanding which taxes can be discharged and how bankruptcy affects IRS collections is essential before making a financial decision.
Can Bankruptcy Eliminate IRS Tax Debt in Mississippi?
Certain income tax debts may qualify for discharge through bankruptcy, but only if they meet specific legal criteria:
These rules determine which income tax debts may qualify for discharge, while other types—such as payroll taxes and penalties related to fraud—are not dischargeable. These guidelines are detailed in the IRS's Bankruptcy Tax Guide.
Chapter 7 may help eliminate some older tax debts, while Chapter 13 allows you to set up a structured repayment plan. To understand how each bankruptcy type works beyond tax debt, our Mississippi bankruptcy guide provides a full breakdown of Chapters 7, 11, 12, and 13
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Understanding these distinctions is crucial when considering bankruptcy as a solution for tax debt. Consulting with a legal professional can provide guidance tailored to individual circumstances.
Taxpayers filing for bankruptcy must follow specific IRS rules regarding tax filings and payments:
Personal Liability vs. Tax Liens
Although bankruptcy can erase some IRS tax debt, any tax liens recorded before filing will remain in place, meaning the IRS still has a claim on the affected assets. Even after a bankruptcy discharge, the IRS can still enforce these liens, which may impact future property sales or refinancing. Resolving tax liens requires separate legal action beyond bankruptcy.
Yes, the IRS can offset your tax refund against outstanding debts even after filing for bankruptcy. The impact depends on when the refund is issued:
To prevent losing refunds, consult a bankruptcy attorney before filing to discuss your options.
The waiting period to discharge tax debt depends on three key timeframes:
If these conditions are not met, the tax debt remains non-dischargeable, meaning you will still owe it even after bankruptcy.
When bankruptcy isn’t the best route for resolving IRS tax debt, taxpayers can explore alternatives like:
Offer in Compromise (OIC): If you can prove financial hardship, the IRS may settle your tax debt for less than you owe—but approval rates are low.
Installment Agreements: If you can afford monthly payments, this plan lets you spread your debt over time and stop aggressive IRS collections.
Currently Not Collectible (CNC) Status: If you can’t pay at all, the IRS may pause collections, but penalties may still accrue.
A bankruptcy attorney can help you decide whether bankruptcy or an alternative tax relief option is best for your situation
The Federal Trade Commission (FTC) plays a pivotal role in safeguarding consumers during bankruptcy proceedings. The FTC’s Bureau of Consumer Protection actively works to prevent unfair, deceptive, and fraudulent business practices. This includes enforcing laws that protect individuals filing for bankruptcy from abusive behaviors by creditors and debt collection agencies. The Bureau achieves this by collecting consumer reports, conducting investigations, initiating legal actions against violators, developing rules to maintain a fair marketplace, and educating both consumers and businesses about their rights and responsibilities.
If bankruptcy does not eliminate your IRS tax debt, there are several alternatives to consider:
It's essential to consult with a tax professional or legal advisor to determine the best course of action based on your individual circumstances. They can guide you through the available options and help you negotiate effectively with the IRS.
Can bankruptcy remove IRS tax debt?
Yes, but only if the tax debt is at least three years old, the tax return was filed on time, and the IRS assessed the debt at least 240 days before filing. Other tax debts, like payroll taxes, are not dischargeable.
Will bankruptcy stop IRS collections?
Yes. When you file for bankruptcy, an automatic stay immediately stops IRS wage garnishments, levies, and collection efforts. However, tax liens recorded before bankruptcy will remain, even if the debt is discharged.
Can the IRS take my tax refund if I file for bankruptcy?
Possibly. If the refund is from before filing, it may be used to pay creditors. In Chapter 13 bankruptcy, tax refunds may be included in the repayment plan.
Should I file for bankruptcy or apply for an Offer in Compromise?
Bankruptcy is usually faster and more effective at eliminating tax debt, while an Offer in Compromise (OIC) lets you settle for less but is harder to qualify for. A bankruptcy attorney can help determine the best option.
At Davis & Davis, PLLC, we understand that financial difficulties can make it hard to afford legal fees upfront. That’s why we offer flexible payment plans on bankruptcy cases, making it easier for you to take the first step toward financial stability. Our team will work with you to explore the most affordable options while helping you navigate the bankruptcy process.
Tax debt doesn’t have to control your future. With the right legal guidance, you can regain financial stability and work toward a fresh start. At Davis & Davis, PLLC, we’re committed to helping you find the best path forward.
Contact Davis & Davis, PLLC today at (228) 275-9922 for a free consultation, and let’s discuss how we can help you achieve lasting financial stability.
