Mississippi Debt Relief

Mississippi state Credit Card Debt law sets a 3-year Statute of Limitations (SOL), or time limit for filing lawsuits, on open-ended accounts like Credit Card Debt. This is one of the shortest time limits nationwide. The statute begins to run from the date of the first missed payment, and it will not be affected by any subsequent partial payments. Defendants have 30 days to file an answer, unless otherwise stated on the summons. Certified mail is the preferred method of delivery for filing an answer to be sure it arrives before a default judgment can be entered.

Judgment Enforcement

Mississippi provides creditors with 7 years to collect a debt judgment, which will accrue interest at the contract rate or by a rate the judge determines. Creditors may levy both real and personal property to satisfy the judgment order, but a homestead exemption of $75,000 is allowed. Wage garnishment is allowed up to 25% of the debtor’s wages, but wages are exempt for 30 days after the order goes into effect.

Mississippi recognizes “judgment by confession” clauses, language in contracts that automatically places judgment for the Plaintiff, on a limited basis. The agreement must be reaffirmed with the debtor’s signature and made under oath on an "office confession of judgment.”

Debt Settlement

Debt Settlement is a viable option for those facing financial hardships of this type. It allows consumers to work out interest free payment plans, rather than facing the embarrassment of seized property or garnished wages. In addition, Debt Settlement may be the consumer’s last option for avoiding bankruptcy.