You indicate you live in Mississippi.
As I said before no one on this or any other Internet forum should be advising you on what to do with the severance package - Period. If you take someone’s “advice” and that “advice” is contrary to the law or how things are handled in Mississippi you will be very sorry. Get advice from a qualified professional.
There are at least two State exemption provisions that might partially (or fully) protect the severance package:
Miss. Code Ann. § 85-3-1 states, in part. . .
"There shall be exempt from seizure under execution or attachment:
(a) Tangible personal property of the following kinds selected by the debtor, not exceeding Ten Thousand Dollars ($10,000.00) in cumulative value:
(I) Household goods, wearing apparel, books, animals or crops;
(ii) Motor vehicles;
(iii) Implements, professional books or tools of the trade;
(iv) Cash on hand;
(v) Professionally prescribed health aids;
(vi) Any items of tangible personal property worth less than Two Hundred Dollars ($200.00) each.
Household goods, as used in this paragraph (a), means clothing, furniture, appliances, one (1) radio and one (1) television, one (1) firearm, one (1) lawn mower, linens, china, crockery, kitchenware, and personal effects (including wedding rings) of the debtor and his dependents; however, works of art, electronic entertainment equipment (except one (1) television and one (1) radio), jewelry (other than wedding rings), and items acquired as antiques are not included within the scope of the term “household goods.”. . ."
(Emphasis added.)
So, a fair reading of the above means you get to keep $10k in cash IF you own nothing else on the list.
Further, there needs to be an evaluation as to how the above provision applies to the severance package which, if not received by the time you file bk, might be classified as “wages” and subject to the exemption provided by Miss. Code Ann § 85-3-4 covering exempt wages.
You need to find out how these Statutes are interpreted and how they or any others will apply to your specific situation.
Des.
