Mississippi Debt Relief Programs: Free Help, Licensed Counselors, and Your Rights

How Mississippi debt relief programs work

There is no Mississippi agency that pays down credit cards, medical bills, or personal loans. Ads promising a "Mississippi debt relief program" come from private businesses. Some are licensed and helpful, and some are not. None of them speak for the state.

Real help comes from four places. A licensed nonprofit counselor can set up a repayment plan, often with lower interest. You or a company can negotiate a settlement. The federal bankruptcy courts in Aberdeen, Jackson, and Gulfport can wipe out or reorganize debt. And Mississippi's exemption laws limit what a creditor can collect even after it wins in court.

Before you pay a company, read our guide on how to tell if a debt relief company is legit. In Mississippi, also check the company against the state's license list.

The Mississippi Debt Management Services Act

Under Mississippi Code section 81-22-1 and the sections after it, a business that offers debt management services to Mississippians for a fee must be licensed by the Department of Banking and Consumer Finance (DBCF). The law had a built-in end date and was set to expire on July 1, 2026. In March 2026 the Governor signed House Bill 1265, which removed that end date, so the Act stays in force.

The text of the Act limits what a licensed provider may charge you:

Your written agreement must list each debt in the plan, the bank where your payments are held, the schedule of payments to each creditor, and your right to cancel in writing. It must also give DBCF's contact number, 1-800-844-2499, for questions or complaints. The provider has to send you regular reports showing what it received and paid out. DBCF posts a list of licensed debt management providers and a complaint form.

A gap in the law for settlement companies

Read the definitions closely and you will find an exception that matters. The Act does not cover for-profit companies that do not hold your money, do not take a fee until you approve a settlement, and are regulated by the Federal Trade Commission. Many national debt settlement firms are set up this way, so they may not appear on the DBCF list at all.

That does not make them illegal, but it does mean the $75 and $30 fee caps above do not protect you. Federal rules still bar settlement companies that sell by phone from charging before they settle a debt. Before you sign, ask:

• What percentage of the enrolled debt or of the savings will the fee be?
• Where will my monthly deposits be held, and can I withdraw them?
• What happens if a creditor sues me while I am in the program?
• Will forgiven balances be reported to the IRS as income?

If the answers are vague, a licensed nonprofit plan or a free legal aid consultation may be the safer first step.

Choosing a path out of debt

The National Foundation for Credit Counseling can point you to member agencies that work with Mississippi residents. If you are headed toward bankruptcy, the required credit counseling course must come from a U.S. Trustee-approved provider.

The 30-day wage protection and the 25% cap

Mississippi Code section 85-3-4 gives workers a feature many states lack. For the first 30 days after a writ of garnishment, attachment, or execution is served, your wages cannot be taken at all. The current statute text (reprinted in a 2023 bill that did not pass) then caps garnishment at the lesser of:

• 25% of your disposable earnings for the week, or
• the amount your weekly disposable earnings exceed 30 times the federal minimum wage. With the federal minimum still at $7.25, Mississippi workers keep at least $217.50 of each week's take-home pay.

The 30-day wait and these limits do not apply to child support orders or to state and local taxes. Support garnishments can reach 50% to 60% of pay under separate rules. Use the 30-day window well: it is often the best time to call legal aid, set up a payment plan, or talk with a bankruptcy attorney.

Protecting your home, car, and household goods

Mississippi's homestead law, section 85-3-21, protects the land and buildings you own and live in, up to 160 acres and $75,000 in value. The value is figured after subtracting mortgages, taxes, and other liens, so it works as an equity limit. A widow or widower over 60 who already had the exemption does not lose it by moving out.

Section 85-3-1 separately protects tangible personal property you select, up to $10,000 in total. That can include household goods, clothing, a car, tools of your trade, cash on hand, and health aids, plus any single item worth under $200. The statute's definition of household goods includes one TV, one radio, one firearm, one lawn mower, and wedding rings, but not jewelry or antiques. Proceeds of insurance on exempt property and disability insurance income are also protected.

These exemptions are not automatic in every case. When property is seized, you usually must claim them in court. Mississippi Legal Services has a guide called How to Claim Your Exemptions in its debt collection section. If housing costs are the bigger worry, see Mississippi hardship relief.

Three years to sue on most debts

Mississippi has one of the shorter time limits in the country. Section 15-1-49 sets three years for actions that have no other specific deadline, and open accounts such as store cards also carry a three-year limit. In practice, most credit card and medical debts must be sued on within three years.

When the clock starts can be argued. On an open account, each charge may have its own due date. And a signed written promise to pay an old debt can revive it. If a collector contacts you about an account you have not paid in several years, ask for the date of the last payment in writing and talk with legal aid before you send money or sign a new agreement.

Debt collectors and your rights

For collection conduct, Mississippi relies mainly on federal law and its general consumer protection statute. The Attorney General's Consumer Protection Division enforces the Mississippi Consumer Protection Act and the federal Fair Debt Collection Practices Act against collectors who lie, threaten, or harass. Under federal law, third-party collectors:

• May not call before 8 a.m. or after 9 p.m. your time.
• Must send a validation notice showing the amount, the creditor, and how to dispute.
• Must stop contacting you if you ask in writing, except to confirm they are stopping or to tell you about a lawsuit.
• May not threaten arrest or claim they can take property the law protects.

The Division's consumer mediators can sometimes resolve a dispute with a business. Call 1-800-281-4418 or use the online complaint form. Federal complaints go to the CFPB.

Free legal help and bankruptcy courts

Legal aid income limits vary by program, so call even if you are not sure you qualify. If you think you may have money waiting from an old account, our Mississippi unclaimed property guide shows how to search the state treasurer's list.

Related guides

• Mississippi assistance programs
• Free legal aid for debt collection
• Alabama debt relief programs
• Tennessee debt relief programs

Frequently asked questions

This guide explains Mississippi rules in general terms and is not legal advice. Statutes can be amended and courts apply them to specific facts, so speak with a legal aid office or a Mississippi attorney about your own case. National Relief Program does not represent any government agency.