If you’re building a legacy for your family, the last thing you want is for that wealth to get tied up in lawsuits or drained by creditors. In Mississippi, asset protection planning can be folded right into your estate strategy without sacrificing your long-term goals. With the right tools, you can pass down what you’ve built while reducing the risk of someone else taking it away.
Mississippi allows a specific kind of trust called a Qualified Disposition in Trust (QDIT). This irrevocable trust protects assets from most lawsuits and creditor claims.
To work, the trust must include a “spendthrift clause” and be managed by a Mississippi trustee. You’ll also need to prove that you’re solvent when transferring assets and sign an affidavit confirming that you aren’t trying to dodge current debts.
The protection isn’t instant. Creditors have up to two years to file a claim after assets are transferred into the trust. However, once that window passes, those assets are much harder to reach.
Exceptions do exist. These include unpaid child support or certain government claims. However, for most people, this tool adds a strong layer of security.
For business owners and real estate investors, forming a Family Limited Liability Company (LLC) is another smart move. It keeps your personal assets separate from business risks and offers liability protection. Additionally, if the LLC is owned by your trust, the protection is even stronger.
If a creditor wins a judgment against you, they usually can’t touch the company itself. All they may get is a “charging order,” which gives them a share of future distributions but no control or access to the business or its property.
At O’Brien Law Firm, we help clients create estate plans that pass on and protect wealth. Whether you want to shield family property, limit exposure to lawsuits, or pass on a business safely, we’ll show you how these tools work together. Contact us today to start building a plan that keeps your future and your family secure.
For years, student loans were considered almost impossible to erase in bankruptcy. However, in 2025, that’s changing. Thanks to updated federal guidance, borrowers in Mississippi and across the U.S. now have a better shot at getting rid of federal student loans through bankruptcy, especially if they’re struggling financially or dealing with long-term hardship.
To discharge student loans in bankruptcy, you have to prove that paying them would cause undue hardship. That means showing you can’t keep up a minimal standard of living while making payments, the hardship is likely to continue, and you’ve tried in good faith to repay the debt.
This test, often called the Brunner Test, was often extremely difficult to meet. But now, borrowers can use simpler documentation to show their situation. You no longer need years of past repayment history or perfect paperwork to prove you tried. Even one positive step, like applying for a repayment plan, may be enough.
In 2024, the U.S. Departments of Education and Justice released joint guidelines that made the process easier. Borrowers can now fill out an attestation form instead of going through drawn-out court fights. If the Department agrees you meet the standard, they may even support your request for discharge.
So far, the results are promising. As of late 2024, about 85% of processed student loan bankruptcy cases have ended in full or partial discharge. That’s a huge jump from just a few years ago when fewer than 1 in 10 were successful.
Discharging loans still requires filing bankruptcy, usually Chapter 7 or Chapter 13, and starting a separate lawsuit within the case, called an adversary proceeding. You’ll need to submit financial records and medical documentation (if relevant) and show why repayment would be unfair under your circumstances.
Borrowers in Mississippi may especially benefit if they attended a for-profit school, are living on disability income, or have faced long-term underemployment. The courts will also look at age, dependents, and your chances of earning more in the future.
If your debt feels impossible to manage, contact O’Brien Law Firm to find out if bankruptcy could be a path to relief.