Bankruptcy in Mississippi (2026): Exemptions & Means Test

Filing bankruptcy in Mississippi means following one set of property rules: Mississippi has opted out of the federal bankruptcy exemptions, so filers must use Mississippi's own exemption statutes in Title 85, Chapter 3 of the Mississippi Code. Bankruptcy itself is federal, but the exemptions that decide what you keep, and the means-test income that decides which chapter you can use, are state-specific. Unlike states that index their homestead for inflation, Mississippi's homestead is a fixed dollar amount, so the figures below are current as of mid-2026, and you should confirm the latest amounts before relying on them.

This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.

Does Mississippi use state or federal bankruptcy exemptions?

Mississippi has opted out of the federal exemption system. Under Miss. Code 85-3-2, residents of Mississippi are not entitled to the federal exemptions in 11 U.S.C. 522(d), so a filer domiciled in Mississippi must use the state exemptions found in Title 85, Chapter 3 of the Mississippi Code. The menu of federal bankruptcy exemptions is simply not available here. About two-thirds of states have opted out in this way.

Even though the federal exemption schedule is off the table, a Mississippi filer may still claim the federal nonbankruptcy exemptions preserved by 11 U.S.C. 522(b)(3). Those include things like Social Security benefits, certain veterans' and federal-employee benefits, and tax-exempt retirement accounts. Married couples filing jointly are each separate debtors, but doubling an exemption is not automatic: whether each spouse may separately claim a given exemption is controlled by Mississippi law, exemption by exemption. The homestead is the clear exception. In In re Pace, No. 13-14017-JDW, the U.S. Bankruptcy Court for the Northern District of Mississippi held that Miss. Code 85-3-21 "allows only one homestead exemption per residence" and that the joint married debtors before it "may not double the homestead exemption," so spouses living in the same house share a single $75,000 homestead. The same opinion notes that spouses who are separated or who otherwise maintain genuinely separate households may each claim a homestead exemption on his or her own residence.

Mississippi homestead exemption

Mississippi's homestead exemption is the headline protection for homeowners, and unlike many states it is a fixed dollar amount rather than an inflation-indexed one. Under Miss. Code 85-3-21, a householder who owns and occupies a residence may exempt the land and buildings up to a value of $75,000, with the property limited to 160 acres. The value is measured after subtracting mortgages, tax liens, and other encumbrances, so the exemption protects up to $75,000 of equity.

The statute also provides some continuity for older filers: a husband or wife, or a widower or widow, over 60 years of age who has previously claimed the homestead exemption is not deprived of it merely because the person no longer resides on the property. Because the amount is fixed in the statute and does not adjust automatically, the $75,000 figure changes only if the Legislature amends the law, so confirm it is current before filing.

The $75,000 is a per-residence limit rather than a per-person one, so a married couple filing jointly on the same home claims one homestead exemption between them, not two.

Homestead protection covers equity, not the full value of the home. A residence worth far more than the mortgage plus the $75,000 exemption can leave non-exempt equity that a Chapter 7 trustee may reach, which is one reason homeowners with substantial equity often look at Chapter 13 instead.

Vehicle, wildcard, and personal-property exemptions

Mississippi does not have a stand-alone car exemption. Instead, a vehicle is protected within a single combined personal-property allowance. Under Miss. Code 85-3-1, a debtor may exempt tangible personal property of certain kinds, selected by the debtor, up to a cumulative value of $10,000. The categories include:

• Household goods, wearing apparel, books, animals, or crops.
• Motor vehicles.
• Implements, professional books, or tools of the trade.
• Cash on hand.
• Professionally prescribed health aids.
• Any items of tangible personal property worth less than $200 each.

The statute narrows "household goods" to ordinary items like furniture, appliances, clothing, one radio and one television, one firearm, and personal effects, and it excludes works of art, most electronic entertainment equipment, and antiques. There is no large general wildcard; the $10,000 combined limit functions as the practical cap on protected personal property, so filers with a valuable car may have little room left for other items.

A mobile home has its own separate allowance. Under Miss. Code 85-3-1(d), one mobile home, trailer, manufactured housing unit, or similar dwelling owned and occupied as the debtor's primary residence is exempt up to $30,000 in value, measured after existing encumbrances, taxes, and other liens are deducted. That $30,000 sits outside the $10,000 personal-property cap, but the two residence exemptions are mutually exclusive: the statute provides that a debtor who claims the homestead exemption under Section 85-3-21 is not entitled to exempt a mobile home as personal property.

Mississippi also protects wages and earnings. Under Miss. Code 85-3-4, wages are fully protected for 30 days after a writ is served, and after that the garnishable amount is capped, mirroring the federal limit that protects at least 75 percent of disposable earnings. Tax-qualified retirement accounts are protected under separate Mississippi exemptions and federal law.

The Chapter 7 means test in Mississippi

The means test screens who can file Chapter 7. The first step compares your household's current monthly income, annualized, to the median family income for a Mississippi household of the same size. If your income is at or below the Mississippi median, you generally pass and may proceed with Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.

The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the Mississippi median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.

Chapter 7 vs. Chapter 13 in Mississippi

Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because Mississippi's exemptions protect a home up to $75,000 in equity and personal property up to $10,000, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.

Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage or who have home equity above the $75,000 homestead, because the plan can spread out missed payments and stop a foreclosure while you catch up.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.

Where you file bankruptcy in Mississippi

Mississippi is divided into two federal bankruptcy districts. The U.S. Bankruptcy Court for the Northern District of Mississippi keeps its clerk's office in Aberdeen and also holds hearings at its Oxford and Greenville divisional locations, and it covers the northern counties. The U.S. Bankruptcy Court for the Southern District of Mississippi has locations in Jackson, Gulfport, Hattiesburg, and Natchez and covers the southern counties. Which court you file in depends on the county where you live. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.

What bankruptcy can and cannot do

Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.

Because the homestead is a fixed amount and the choice between Chapter 7 and Chapter 13 depends on your full financial picture, many people consult a licensed Mississippi bankruptcy attorney before filing.