Mississippi Debt Relief Programs, Services, Laws, and Facts

Are you a Mississippi resident struggling to pay down your debt? Drowning in credit card bills and unending interest? There's help for you!  

Mississippi has specific laws that govern debt relief and the rights of both consumers and creditors in the state. 

Here are some key points to understand and important resources to check out ...

Click the links below to find out more about debt relief programs in the State of Mississippi:

Mississippi Debt Relief Facts

About 400,000 individuals in the state of Mississippi have student loan debt, with an average monthly payment of $225.

Federal and private student loan borrowers in the state of Mississippi owe an average of $33,182. That’s less than the national average. However, that figure has been on the rise since 2009.

Did you know Mississippi residents carry some of the highest debt loads in the entire country?

Mississippi Debt Relief Programs, Law Firms, and Services

Struggling to pay your bills? The State of Mississippi has a variety of programs that can help you:

Trouble finding work? Looking for unemployment benefits? The Mississippi Department of Employment Security (MDES) provides help to job seekers with a central clearinghouse for job openings, job fairs and other employment information. This is also the place to go when seeking unemployment benefits.

Trouble affording housing? HUD (Housing and Urban Development) of Mississippi provides a variety of resources to assist renters, homebuyers and owners, and other stakeholders in creating safe, affordable, energy-efficient housing. HUD is a federally funded program that helps low- to moderate-income homebuyers attain 30-year, fixed-rate, low-interest mortgages. 

Here's the joint mortgage and housing assistance website maintained by the Consumer Financial Protection Bureau, Federal Housing Finance Agency  and the Department of Housing and Urban Development.

Trouble avoiding health care? Freeclinics.com provides a list of free and income-based medical and dental clinics around the State of Louisiana. 

Need food? Foodpantries.org maintains a list of food pantries to assist people with need. 

Mississippi Debt Relief Laws

The following is an overview of the main debt relief laws for Mississippi.

Mississippi Debt Relief Laws: Statute of Limitations

A debt is only valid for a certain amount of time called the statute of limitations. If a creditor doesn't sue you within this time frame, the debt goes away. 

Creditors have up to three years to file a lawsuit against you in Mississippi. After that time has passed, they cannot take legal action to collect the debt. 

See the following from Mississippi statutes for further reference: Mississippi Code Annotated, Title 15, Chapter 1, Article 3: Limitations of Actions 

Mississippi Debt Relief Laws: Wage Garnishment

Here's the long and short of wage garnishment in the state of Mississippi.

Mississippi Wage Garnishment: The Short Version ...

Mississippi law limits the amount that can be garnished from a debtor's wages to no more than 25% of their disposable income, or the amount by which their disposable income exceeds 30 times the federal minimum wage.

Mississippi Wage Garnishment: The Longer Version ...

Here is a fuller explanation of Wage Garnishment: What is Wage Garnishment? How Much Money Can be Garnished from Your Paycheck? Wage Garnishment Calculator

Mississippi Modifications to the Garnishment Calculation

Federal law (what we were discussing above) provides an upper limit to your wage garnishment. State laws can't raise this cap, but they can lower it. That is to say, state law can give you some extra relief. Some states set a lower percentage limit for wage garnishment.

How long until the wage garnishment starts? State law also typically provides a grace period after the garnishment order is received. Mississippi law provides you with a brief grace period.

Mississippi Wage Garnishment Law Citations

Mississippi wage garnishment laws are found at Mississippi Code Annotated, Title 11, Chapter 35, Articles 1-61. Here's a link to the laws governing wage garnishment in the state of Mississippi. 

Mississippi Debt Relief Laws: Homestead and Other Property Exemptions

Mississippi allows debtors to claim a homestead exemption of up to $75,000 in equity in their primary residence. This means that if a debtor files for bankruptcy or has a judgment entered against them, their home is protected up to that amount.

This section of the Mississippi Code outlines the homestead exemption for primary residences: Mississippi Code Annotated, Title 85, Chapter 3, Article 21.

Mississippi Code 85-3-1 also states that all the following are exempt from seizure under execution or attachment: 

• Personally property less than $10,000 in total value, including all the following: household goods, like furniture, appliances, and wedding rings; apparel; books, animals or crops; motor vehicles; professional books or tools of the trade; cash on hand; professionally prescribed health aids; any items of tangible personal property worth less than $200.00 each. 
• Insurance proceeds from property damage  
• Income from disability insurance 
• One (1) mobile home, trailer, manufactured housing, or similar type dwelling owned and occupied as the primary residence by the debtor, not exceeding a value of $30,000, unless debtor is claiming a homestead exemption under Section 85-3-21 
• Retirement assets held in a pension, profit-sharing, stock bonus, or other retirement plan  
• Money paid into an education fund, such as the Mississippi Prepaid Affordable College Tuition (MPACT) Program and the Mississippi Affordable College Savings (MACS) Program  
• Money held in a health savings account
• Additional property having a value of $50,000 of whatever type, whether real, personal or mixed, tangible or intangible, including deposits of money, available to any Mississippi resident who is seventy (70) years of age or older
• $5,000 or less from earned income tax credits, federal tax refund, or state tax refunds

This section of the Mississippi Code outlines all the above exemptions: Mississippi Code Annotated, Title 85, Chapter 3, Article 1.

Mississippi Debt Relief Laws: Debt Settlement

Mississippi once regulated and licensed Debt Settlement Companies, but these provisions of the Mississippi Code were repealed July 1, 2022.

Debt settlement companies are no longer regulated in Mississippi and licensed by the state. They were once required to disclose their fees and services in writing, and could not charge fees until they have settled or resolved a debt. This is no longer the law. 

Mississippi Debt Relief Laws: Bankruptcy

Mississippi follows federal bankruptcy laws, like all other states. Federal law allows debtors to file for Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, most unsecured debts are discharged. In Chapter 13 bankruptcy, the debtor repays a portion of their debts over a period of three to five years.

All the federal bankruptcy laws can be found online. This link provides access to the United States Bankruptcy Code.

It's important to note that while these laws exist to protect consumers, they do not absolve them of their debts. If you are struggling with debt, it may be helpful to speak with a financial advisor or credit counselor to explore your options for debt relief.