Filing Chapter 7 Bankruptcy in Mississippi (2026)
Reviewed by DocDraft Legal Team · Mississippi · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Mississippi. Mississippi is an opt-out state: under Miss. Code section 85-3-2 you must use Mississippi's exemptions and cannot choose the federal 522(d) list. This page explains Mississippi's homestead exemption under Miss. Code section 85-3-21, which protects up to $75,000 of equity in a home on as much as 160 acres, the $10,000 aggregate personal-property exemption that covers a car and household goods, the means-test median income, and the two federal bankruptcy courts where Mississippians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Mississippi use state or federal bankruptcy exemptions?
Mississippi is an opt-out state. Under Miss. Code section 85-3-2 the state has opted out of the federal 11 U.S.C. 522(d) exemptions, so a debtor filing in Mississippi must use Mississippi's own exemptions. You cannot choose the federal list or combine the two sets; you apply the Mississippi exemptions in full.
Can I keep my house if I file Chapter 7 in Mississippi?
Often yes. Under Miss. Code section 85-3-21, Mississippi's homestead exemption protects up to $75,000 of equity in a home you own and occupy on as much as 160 acres. If your home equity fits within that $75,000 cap, Chapter 7 generally lets you keep the house. Equity above the cap may be reachable.
Can I keep my car if I file Chapter 7 in Mississippi?
Usually yes if your equity is modest. Mississippi has no separate motor-vehicle exemption; a car is covered within the $10,000 aggregate personal-property exemption under Miss. Code section 85-3-1(a). That same $10,000 also covers household goods and other tangible items, so a low-equity vehicle is generally protected within the shared cap.
What is the income limit to file Chapter 7 in Mississippi?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Mississippi are $53,978 for one earner, $70,328 for two, $82,846 for three, and $97,464 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Mississippi's Opt-Out Rule, the $75,000 Homestead, and the $10,000 Personal-Property Cap
Mississippi is a bankruptcy opt-out state. Under Miss. Code section 85-3-2, a debtor filing in Mississippi must use Mississippi's exemptions and cannot elect the federal 11 U.S.C. 522(d) set. The headline protection is the homestead exemption under Miss. Code section 85-3-21, which shields up to $75,000 of equity in a home you own and occupy on as much as 160 acres, with sale proceeds also protected. Mississippi has no stand-alone motor-vehicle or wildcard exemption for filers under 70; instead a single $10,000 aggregate personal-property exemption under Miss. Code section 85-3-1(a) covers tangible property such as a car, furniture, household goods, appliances, clothing, and tools of the trade within that one cap. Wages are protected under Miss. Code section 85-3-4, and qualified retirement funds under Miss. Code section 85-3-1(e). Mississippians file in one of two federal bankruptcy courts: the U.S. Bankruptcy Court for the Northern District of Mississippi or the Southern District of Mississippi, based on where they have lived for most of the prior 180 days.
Relevant Laws
Mississippi Homestead Exemption (Miss. Code 85-3-21)
Sets the homestead exemption at up to $75,000 of equity in a home the debtor owns and occupies, on land of up to 160 acres, with sale proceeds also protected. This is the exemption that lets many Mississippi homeowners keep their house in Chapter 7.
Mississippi Opt-Out From Federal Exemptions (Miss. Code 85-3-2)
The statute by which Mississippi opts out of the federal 11 U.S.C. 522(d) exemptions. A debtor filing bankruptcy in Mississippi must use Mississippi's own exemptions and cannot elect the federal list.
Mississippi Personal Property Exemption (Miss. Code 85-3-1)
Provides a single $10,000 aggregate exemption for tangible personal property, covering a motor vehicle, household goods, appliances, clothing, tools of the trade, and similar items, and separately exempts qualified retirement funds under subsection (e).
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Mississippi has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Mississippi Chapter 7 Exemption Table
Homestead
Miss. Code 85-3-21: up to $75,000 of equity in a home you own and occupy as your primary residence, on land of up to 160 acres, with sale proceeds also protected. Equity above $75,000 may be reachable by the trustee.
Motor vehicle
Mississippi has no stand-alone vehicle exemption. A car is protected within the $10,000 aggregate personal-property exemption under Miss. Code 85-3-1(a), shared with household goods and other tangible items.
Wildcard
There is no general wildcard for filers under 70. Miss. Code 85-3-1(b) provides a wildcard of up to $50,000 in property only for a Mississippi resident who is 70 or older. Most filers rely instead on the specific personal-property and homestead caps.
Personal property
Miss. Code 85-3-1(a): a single $10,000 aggregate exemption covering tangible personal property such as a motor vehicle, furniture, household goods, appliances, clothing, wedding rings, tools of the trade, books, and health aids. You total these items against the one $10,000 cap.
Wages
Miss. Code 85-3-4: earnings are protected from garnishment to the extent of the greater of 75 percent of disposable weekly earnings or 30 times the federal minimum wage, mirroring the federal wage-garnishment floor. The unprotected portion of wages can be reached by creditors.
Retirement and tools
Miss. Code 85-3-1(e): qualified retirement plans and funds, including IRAs and similar tax-qualified accounts, are exempt. Tools of the trade are not a separate category; they are protected within the $10,000 aggregate personal-property exemption under 85-3-1(a). ERISA-qualified plans are separately excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current Mississippi means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Mississippi median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $53,978 for one, $70,328 for two, $82,846 for three, and $97,464 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Mississippi district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Value your assets against the Mississippi exemptions
Before preparing your schedules days after startingMatch your home equity against the $75,000 homestead under Miss. Code 85-3-21, and total your car, furniture, and other tangible items against the $10,000 aggregate personal-property cap under 85-3-1(a). Mississippi is opt-out, so you cannot use the federal exemption list.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Northern or Southern District of Mississippi, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Mississippi means-test median income | Check your household size against the U.S. Trustee Mississippi median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $53,978 for one, $70,328 for two, $82,846 for three, and $97,464 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Mississippi district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Value your assets against the Mississippi exemptions | Match your home equity against the $75,000 homestead under Miss. Code 85-3-21, and total your car, furniture, and other tangible items against the $10,000 aggregate personal-property cap under 85-3-1(a). Mississippi is opt-out, so you cannot use the federal exemption list. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Northern or Southern District of Mississippi, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Miss. Code section 85-3-21, Mississippi's homestead exemption protects up to $75,000 of equity in a home you own and occupy as your primary residence, on land of up to 160 acres. Proceeds from a sale of the homestead are also protected. Equity above the $75,000 cap may be reachable by the Chapter 7 trustee.
Under Miss. Code section 85-3-1(a), Mississippi allows a single $10,000 aggregate exemption for tangible personal property. It covers items such as a motor vehicle, furniture, household goods, appliances, clothing, wedding rings, tools of the trade, books, and health aids. Because it is one shared cap, you total these items against the $10,000 limit.
No. Mississippi has no stand-alone motor-vehicle exemption. A car is protected within the $10,000 aggregate personal-property exemption under Miss. Code section 85-3-1(a), shared with furniture, appliances, and other tangible goods. If your combined equity in these items stays within $10,000, your vehicle is generally protected in Chapter 7.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Largely yes. Under Miss. Code section 85-3-4, Mississippi protects the greater of 75 percent of disposable weekly earnings or 30 times the federal minimum wage from garnishment. Qualified retirement funds are exempt under Miss. Code section 85-3-1(e), and ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
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