Knowing Mississippi and federal laws relating to debts and credit reporting may protect your financial future; a growing number of state residents are victims of identity theft or suffer from financial problems that lead to home foreclosures and bankruptcy, according to the Mississippi Attorney General. Since most debts can be noted on your credit reports for seven to 10 years, paying them on time and knowing what to do if you land in financial trouble can help enhance your life.
Statute of Limitations
Under state law 15-1-29, a debt collector cannot sue you for unpaid debts once three years have passed, according to the Mississippi Code of 1972 website. However, a debt collector can legally try to get money after the statute of limitations has expired, according to the "Credit Cards" website. If you receive collection notices for debts that are more than three years old, don't ignore them but inform the agency and, if you are sued, a local judge that the debt is past the statute of limitations.
Bankruptcy Code
Federal bankruptcy code allows financially struggling Mississippi residents to receive debt relief if they file a case in a local bankruptcy court. Chapter 7 allows for permanent forgiveness of existing debts that are eligible for bankruptcy relief, while Chapter 13 is a court-supervised partial debt repayment plan, according to the United States Bankruptcy Court Southern District of Mississippi. While an attorney is not required to file bankruptcy, common filing errors such as incorrectly completed paperwork or failure to complete prebankruptcy credit counseling must be avoided to fully complete a case. Also, not all debts are eligible for bankruptcy relief, including Mississippi state, local and federal tax bills less than three years old, child support, alimony, court fines and any monetary damages owed due to criminal actions like drunken driving, according to the book "How to File for Chapter 7 Bankruptcy." Bankruptcy even without an attorney's help is usually not free; as of 2010, Mississippi bankruptcy courts charged $299 for Chapter 7 court costs and $274 for Chapter 13 cases. Debtors who meet federal poverty guidelines might qualify for a fee waiver, and some financially struggling Mississippians may qualify for an installment payment plan.
Credit Security Freezes
If you suspect you might be a victim of identity theft, then you should exercise your right as a Mississippi resident to receive a credit report security freeze, according to the Financial Privacy Now website. A security freeze, which costs $10 under state law and can last permanently, compels creditors to contact you before issuing new accounts in your name. You can also take off the security freeze temporarily or permanently if you need lenders to access your credit reports for legitimate transactions, such as a mortgage application.
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