Law Coronavirus Democracy Unemployment Minimum Wage Bankruptcy Obamacare Inheritance Law Child Custody Student Loans Living WIlls Lawyers
Massachusetts - Bankruptcy Exemptions
Filing Means Test Exemptions Courts Forms Lawyers News Blog Coronavirus

Massachusetts Bankruptcy Exemptions


(Portions reprinted by permission from How to File for Chapter 7 Bankruptcy, Nolo © 1989-2019 )

Massachusetts Bankrupcty Exemptions Summary

(details below...)

Federal Bankruptcy Exemptions Also Available
(see below)

Homestead

Automatic homestead $125,000; Declared homestead $500,000 for property you occupy or intend to occupy (including mobile home); (co-owners may not double) (special rules if over 62 or disabled, may double to 1,000,00).  (more...)

Auto/Truck (aka Motor Vehicle)

$7,500; $15,000 if used by elderly or disabled debtor   (more...)

Personal Property

Beds & bedding; heating unit; clothing
Bibles & books to $200 total; sewing machine to $200
Cash for fuel, heat, water, or light to $75 per month
Cash to $200/month for rent, in lieu of homestead
2 cows, 12 sheep, 2 swine, 4 tons of hay
Food or cash for food to $300
Furniture to $3,000;
Trust company, bank, or credit union deposits to $500    (more...)

Wild Card

up to $1,000 plus up to $5,000 unused about of exemptions for automobile, household furnishings, and tools of trade   (more...)

Wage Garnishment Law

85% of gross wages OR 50 times minimum wage per week   (more...)

More Massachusetts Exemptions...

[Click here for more info & citations...]

Just moved, or planning to?

IF you are moving to another state, OR you moved to Massachusetts within in the last two years, click here.

Disclaimer

Disclaimer

Citations and links to primary law and secondary sources are provided for those who wish to do further research. Every effort has been made to make this information up to date and accurate, but laws can and do change without notice. Persons relying on this information are responsible for confirming its timeliness and accuracy before relying on it. (This information was updated for April 2019.)

Also bear in mind that these brief summaries do not list every detail or exception to these exemptions. For example, there are often exceptions for collection of child support debt and/or taxes. These listings are designed to inform you of laws that exist for your benefit, so that you may exercise what rights you may have.

Finally, this website is intended to provide information only. It cannot answer whether your property does or does not qualify for a specific exemption.

ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area

ADVERTISEMENTS - LegalConsumer.com does not endorse or review advertised products or services.
Sponsored Links for Suffolk County

ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area

^ Top
Massachusetts Homestead | Insurance | Retirement | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |

Massachusetts Bankruptcy Exemptions

Massachusetts Offers a Choice of Federal or State Exemptions

Massachusetts law allows you to use the exemptions found in the U.S. bankruptcy code (11 U.S.C. § 522(d)) or the exemptions provided under Massachusetts law. However, you cannot mix and match exemptions from the federal bankruptcy code and state law. You must choose one system or the other.

However, if you use the state law exemptions, there are a few U.S. 'non-bankruptcy' exemptions (that is, exemptions that exist outside of federal bankruptcy code) that you can use in addition to your state law exemptions. The four most significant non-bankruptcy exemptions are for:

  • Wages (a general cap on what percentage of your wages can be garnished)
  • Social Security benefits
  • Civil Service benefits, and
  • Veterans Benefits

Other non-bankruptcy exemptions mostly deal with various benefits to government and military personnel, with a few odd laws regarding specially regulated labor markets such as railroad workers, merchant sailors, and longshoremen.

NOTE: Federal Exemption amounts listed below reflect the April 1, 2019 adjustment for inflation every three years, and therefore do not match the figures shown in the federal exemption statutes. Click here for the April 1, 2019 inflation adjustments to Federal bankruptcy exemption amounts, published in the Federal Register.

Special Notes regarding Massachusetts exemptions:

Massachusetts exemption amounts increased substantially as of April 2011. State statute links to official websites may not reflect the latest change. For a good overview of the changes, see: http://bankruptcyma.blogspot.com/2011/01/new-massachusetts-property-exemptions.html

Can you double exemptions for joint filers? (General principles)

If you are married and filing together, you and your spouse must use the same law; one cannot use federal law while the other uses state law. However, the exemption law chosen applies separately to each spouse. Thus, it is generally possible to double the amount of state law exemptions, Cheeseman v. Nachman, 656 F.2d 60 (4th Cir. 1981) (married couple filing a joint petition was entitled to double the Virginia homestead exemption), unless state law (e.g. California) specifically prohibits a couple from doubling certain exemptions. See First National Bank v. Norris, 701 F.2d 902 (11th Cir. 1984)(Alabama); Granger v. Watson, 754 F.2d 1490 (9th Cir. 1985)(California).

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |

ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area


Massachusetts Homestead Exemption

Home Valuation tools

Zillow.com Recommended! Wonderful tool that shows home values in your neighborhood. This link will take you to a listing of the average home value in your zip code. Just add your street address to get an estimate of the value of your house, and all others in your neighborhood. (Note: Does not serve all areas, and valuations are imperfect estimates only.)

Yahoo Real Estate offers comparable home sales in your neighborhood.

Almost every state provides protection for equity in the family home, and many states have increased the amount of protection in recent years. Seven states offer unlimited protection. Most states are not as generous.

For special rules about filing for declarations of homestead in Massachusets see the links below

New Federal Residency Requirement

Under the new bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $160,375. (If your state's exemption offers less than this amount, the law is irrelevant to you.) The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that state's homestead protection.

IF you are moving to another state, OR you moved to Massachusetts within in the last two years, click here.

Special notes about Massachusetts Homestead Exemptions: For special rules about filing for declarations of homestead in Massachusets see the links below

Federal Exemptions

  • Real property, including co-op or mobile home, or burial plot to $25,150; unused portion of homestead to $12,575 may be applied to any property
    11 U.S.C. § 522 (d)(1), (d)(5)




    (retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986)
    (For assets in individual retirement accounts described in section 408 or 408A of the Internal Revenue Code of 1986, other than a simplified employee pension under section 408(k) of such Code or a simple retirement account under section 408(p) of such Code)









    (Earned Income Tax Credit is federal no local, so not exempt)








Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Tenancy by Entirety Exemption

Tenancy by the Entirety (TBE) is a form of property ownership, based on traditional English common law, that is still recognized in about 1/2 of states and the most common form of martial property ownership in many of them.

It protects property that is jointly owned by a married couple as an "entirety" -- which is to say, as a single marital entity, not as individuals.

Tenancy by the Entirety (TBE) was originally conceived as a debt shield -- a way of protecting wives and children from being left homeless and penniless as a result of the debts of a husband. Under the English common law TBE doctrine, a husband could not sell property owned by "the entirety", or give it away, or pledge it as security for a loan without the consent of his wife.

Today, 25 states still recognize some form of tenancy by the entirety, but they differ on the extent to which the property is exempt.

Federal Exemptions

Massachusetts Exemptions

  • Property coowned by spouses as TBE and used as the principal residence of the nondebtor spouse is exempt unless the claim is based upon necessities provided to either spouse or dependent.
    Mass. Gen. Laws ch. 209, § 1
  • Property held as tenancy by the entirety may be exempt against debt for non-necessity owed by only one spouse.
    Mass. Gen. Laws ch. 209, § 1

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Massachusetts Insurance exemptions

Virtually all states protect life insurance proceeds in some manner or another. Some restrict it to proceeds paid to a dependent. Many states also protect the cash-value or loan-value of insurance policies.

If a substantial amount of your assets are in life insurance, you may want to consult a professional to determine the extent to which those policies are exempt. The website AssetProtectionBook.com does particularly thorough job of covering Massachusetts insurance exemptions.

Special notes about Massachusetts Insurance Exemptions: In re Sloss, 279 B.R. 6 (Bankr.D.Mass. 2002) does a good job of explaining how the various life insurance exemptions (175 §§ 199A, 125, 126) work together.

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Miscellaneous other exemptions for Massachusetts

This category covers items like partnership property, alimony & support payments.

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Massachusetts Pensions & Retirement Savings Exemptions

The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, even if you are using state law exemptions. 11 U.S.C. § 522(b)(3)(C). (See Help Topic: Special Rules For Retirement Accounts.)

The law protects up to $1,283,025 of any pension or retirement fund that qualifies for special tax treatment under Internal Revenue Code sections 401, 402, 403, 408, 408A, 414, 457, or 501(a).

Federal Exemptions

  • All types of retirement funds and accounts that tax-exempt under IRC section 401, 403, 408, 408A, 414, 457, or 501(a) ; IRAs & Roth IRAs limited to $1,362,800 (excluding rollover contributions); limitation can be overidden by judge.
    11 U.S.C. § 522 (d)(12)
    11 U.S.C. § 522 (n)

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |

ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area


Massachusetts Personal Property Exemptions

Auto Valuation Tools:

Kelley Blue Book

Edmunds

Both of these websites offer interactive tools to determine the current value of your used car.

This category covers your car, your non-retirement bank accounts, and most of your other personal possessions, other than your house.

States vary widely on how generous they are in this area. Some exemptions may be for any combination of property up to an aggregate amount. Other exemptions apply only to specific items, such as jewelry.

Remember that an exemption will not protect your car from being repossessed by the holder of the car loan you used to purchase the vehicle if you pledged the vehicle as security for the loan. To keep the car, you will have to pursue other options such as 'redemption' or 'reaffirmation.' See the help topics and How to File for Chapter 7 Bankruptcy for more on this.

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Massachusetts Public Benefits Exemptions

Most states exempt public benefits, consistent with the notion that such benefits are intended as a safety net for the recipient.

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Massachusetts Tools of Trade Exemptions

These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |

ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area


Massachusetts Wage Garnishment Laws

Most states have a wage garnishment law. In some states, wage garnishment laws can be used in bankruptcy as an exemption to protect income that you had coming due, but not yet received, as of the day you filed, for work you had already done -- so called "earned but unpaid wages".

In some states, the wage garnishment law protects not only wages owed to you, but also wages already in your possession and saved over time preferably holding it in a separate bank account. In other states wage garnishment laws do not protect wages once they are they are in your possession.

There is a federal wage garnishment protection found in the CCPA (Consumer Credit Protection Act), 15 U.S.C. § 1673, which limits how much of your pay can be taken for collection purposes. But this law law is generally found not to be an exemptions in bankrupty. See, e.g. IN RE HORTON, Case No. 10-53495., Bankr. ED Kentucky, 3/4/2011

Some courts have also held that some state wage garnishment laws do not create an exemption in bankruptcy. See, eg. Utah, Tennessee, Vermont, Missouri.

Other courts have held that state garnishment statutes DO create an exemption. See, e.g., Oregon, Iowa, Ohio, Kansas, Indiana.

And in Illinois there are recent published bankruptcy court opinions going both ways on the issue of whether Illinios wage garnishment law can be used as an exemption in bankruptcy.

Click here for collected case law on the question: Do wage garnishment laws create an exemption in bankruptcy?

Finally, if you live in a state that lets you use the Federal bankruptcy exemptions in 522(d), and you choose to use them, then you get no exemption for earned but unpaid wages; the wildcard exemption is your only option. See, e.g. U.S. v. Christensen, 200 B.R. 869 (D.S.D. 1996) (applying FDCPA law, based on similar statutory structure to bankruptcy's opt-out law)

Federal Exemptions

Massachusetts Exemptions

^ Top
Massachusetts Homestead | Insurance | Pensions | Personal Property | Public Benefits | Tools of Trade | Wage Garnishment | Wild Card |


Massachusetts Wild Card Exemption

Most, but not all, states allow a so-called "wild-card" exemption that can apply to any property. The wild card exemption can be of particular help if one or more of your other exemptions falls short of protecting your equity. You may split your wild card exemption amount over multiple items and stack it atop other exemptions as needed to protect exposed equity.

Federal Exemptions

Massachusetts Exemptions


ADVERTISEMENT

Talk to a Local Bankruptcy Attorney

Enter Your Zip Code or Call (855) 410-1378 to Connect with a Lawyer In Your Area