Stop Wage Garnishment in Mississippi: Your Legal Options

Drowning in debt feels overwhelming. You wonder where the money will come from to pay bills. You question what happens if you stop paying creditors.

Your debts won’t disappear if you ignore them. Creditors will intensify collection efforts and may sue you.

When a creditor wins a lawsuit, you face a judgment and potential wage garnishment. Your creditor gains the right to take part of your income until the debt is fully satisfied. The portion seized will likely exceed your original payment arrangement.

Mississippi Wage Garnishment Laws Are Strict

The federal government sets national wage garnishment limits. Each state chooses whether to adopt federal standards or implement less strict amounts.

Mississippi adopted federal limitations for wage garnishment. Under Miss. Code § 85-3-4, creditors can withhold the lesser of:

• Up to 25% of your weekly disposable earnings
• The amount your disposable weekly earnings exceed 30 times the federal minimum wage of $7.25 hourly

You receive a 30-day grace period from official notification of the upcoming seizure.

Under Mississippi laws, disposable income equals earnings after required withdrawals like taxes. Voluntary withdrawals for health insurance premiums and other common employer benefits are part of your disposable earnings.

Example: How Garnishment Works in Mississippi

Joey earns $1,000 weekly in disposable income. Per Mississippi laws, his employer must withhold $250 weekly, or 25% of his earnings. That amount is less than the alternative of $782.50, or $1,000 minus (30 x $7.25). Joey has 30 days before garnishment starts to pay off the debt.

Monica takes home $230 weekly in disposable earnings. Her creditor can garnish the lesser of 25% of her pay ($57.50) or $230 minus (30 x $7.25), which equals $12.50. Since the second alternative is lower, her employer will withhold $12.50 each week.

How to Respond to a Mississippi Debt Lawsuit

Wage garnishment hurts everyone involved. Your creditor doesn’t want to sue and go through hassle to recover money. Your employer doesn’t want the administrative burden of withholding pay. You don’t want to lose a big part of your income.

You have options to avoid this situation. Start by responding to the debt lawsuit.

Every debt lawsuit begins with a Court Summons and a Complaint. The Complaint describes why the creditor is suing you. It lists the amount owed and additional details like your account number and the debt’s age.

Scrutinize the Complaint for mistakes before drafting your Answer. Your Answer is your defense to the lawsuit. You’ll identify why you don’t owe the debt or question the lawsuit’s validity.

Filing an Answer stops your creditor from requesting a default judgment. The judge must review both the creditor’s Complaint and your Answer before deciding the case’s outcome.

Our partner Solo can help you respond to debt lawsuits and negotiate settlements.

Repaying the debt entirely is ideal. It stops all further legal activity concerning the obligation. Your creditor must dismiss the lawsuit since there’s nothing to sue you for.

If you can’t afford to repay the entire debt, consider settling it instead.

Avoid Wage Garnishment Through Debt Settlement

In a debt settlement, you offer the creditor a percentage of the obligation in a lump-sum payment. In return, it agrees to release you from the remainder of the debt. If you negotiate a settlement, the debt lawsuit and potential wage garnishment disappear.

Debt settlement is a tech-based approach to resolving obligations. Settlement software helps you send and receive offers until you reach an agreement with the collector. Once you reach an agreement, you manage the settlement documentation and transfer your payment.

Creditors can’t use wage garnishment unless they successfully sue you in court. If you receive notice of a debt lawsuit, take action immediately. File an Answer and find a way to repay or settle the debt before your court date.

Claim Exemptions to Stop Wage Garnishment in Mississippi

Some types of income and property are exempt from wage garnishment in Mississippi, including:

• Up to $75,000 of equity in your homestead
• Up to $20,000 of equity in one mobile home, trailers, manufactured housing, or similar dwelling owned and occupied as your primary residence
• Tangible personal property not exceeding $10,000 in cumulative value
• Proceeds of insurance on or sale of exempt property
• Income from disability insurance
• Assets held in or monies payable from a pension, profit-sharing, stock bonus or similar plan
• Personal injury judgments up to $10,000
• Worker’s compensation benefits
• Unemployment compensation benefits
• Old age, survivors, and disability benefits under the social security act
• Veterans benefits
• Supplemental Security Income payments

If any of these monies or properties apply to your situation, you must claim your exemptions to protect them from garnishment in Mississippi. You should claim your exemptions in writing to prevent any confusion in the future.

Your Options to Stop Mississippi Wage Garnishment

You can stop wage garnishment in Mississippi before it starts. Respond to the debt lawsuit within the required timeframe. File an Answer that challenges the creditor’s claims.

Negotiate a settlement for less than you owe. Our partner Solo makes it easy to send settlement offers and reach agreements with collectors.

Claim exemptions if your income or property qualifies for protection. Document your exemptions in writing to preserve your rights.

Don’t let your Mississippi creditor win a judgment against you by default. Take action within your 30-day grace period to protect your income.