Mississippi Bankruptcy Exemptions
How Mississippi bankruptcy exemptions are affected by preferential transfers
Everyone has questions about Mississippi bankruptcy exemptions. The language of the statutes is archaic and difficult for even lawyers and law firms to interpret in many situations. Conflicts of law, and misinterpretation are especially apparent in classifying financial products, the worth of contract options, and hybrid financial instruments. Many investment vehicles today simply do not fall neatly into any one category, yet may still be covered by a Mississippi bankruptcy exemption. In particular, conforming retirement pensions and benefits may provide an umbrella of protection for financial investments, so long as documentation of proper designation is available.
Preferential transfers and the exemption paradox
Transferring assets in anticipation of filing bankruptcy creates risk. Only certain transactions are allowed during the one year before filing. Preferential transfers to insiders (family, friends, and relative included) prohibited if intended to defraud creditors. However, many legitimate transactions are allowed, which convert cash into exempt assets in the normal course of daily living. For assistance with transfer information, consult a Mississippi bankruptcy lawyer before embarking on any course of action.