What is “Cash on Hand”?

Under Miss. Code Ann. §85-3-1, debtors may claim as exempt certain tangible personal property not to exceed $10,000.00 in equity value.  “Cash on Hand” is specifically included as a category of property that may be claimed as exempt subject to the $10,000.00 limitation.



Bank Accounts are not CASH ON HAND! Cartwright v. Deposit Guaranty Nat. Bank, 675 So. 2d 847 (Miss. 1996).

Does that mean that funds in a bank account can NEVER be exempt? No.  With proper planning, the following may be claimed as exempt if the funds are in a bank account:

-Traceable proceeds from the sale of a homestead.  Miss. Code Ann.§85-3-1(b)(i).

-Traceable proceeds of insurance on exempt property.   Miss. Code Ann.§85-3-1(b)(i).

-Traceable income from an exempt source. (i.e., Social Security Benefits, Workers’ Compensation Benefits, Public Assistance Benefits).

-Wildcard exemption for debtors 70 and older Miss. Code Ann. §85-3-1(h).



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