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Massachusetts Homestead Exemption
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
Federal Law Residency Requirement
Under the 2005 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.) .
Special notes about Massachusetts Homestead Exemptions: For special rules about filing for declarations of homestead in Massachusets see the links below
Massachusetts Exemptions
- MA Exemptions
- Automatic homestead $125,000; "Declared homestead" to $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).
Mass. Gen. Laws ch. 188, § 1
Mass. Gen. Laws ch. 188, § 2
Mass. Gen. Laws ch. 188, § 5
In re Peirce, 467 B.R. 260 (Bankr.D.Minn. 2012) (declared homestead available to owners of living trust)
- 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
- Special rules for elderly and disabled.
Mass. Gen. Laws ch. 188, § 2
- Spouse or children of deceased owner may claim homestead exemption
Mass. Gen. Laws ch. 188, § 7
- Property held as tenancy by the entirety may be exempt against debt for non-necessity owed by only one spouse.
Federal Exemptions
- Indian lands or homestead sales or lease proceeds
25 U.S.C. § 410 - 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)
Home Valuation tool
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.)
^ Top - Massachusetts Bankruptcy Exemptions
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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.
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
Federal Exemptions
^ Top - Massachusetts Bankruptcy Exemptions
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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.
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.
Massachusetts Exemptions
- Disability benefits to $400 per week
Mass. Gen. Laws ch. 175, § 110A
Mass. Gen. Laws ch. 175, § 36B
- Fraternal benefit society benefits
Mass. Gen. Laws ch. 176, § 22
- Group annuity policy or proceeds
Mass. Gen. Laws ch. 175, § 132C
- Group life insurance policy
Mass. Gen. Laws ch. 175, § 135
- Life insurance or annuity contract proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors
Mass. Gen. Laws ch. 175, § 119A
- Life insurance policy if beneficiary is married woman
Mass. Gen. Laws ch. 175, § 126
- Life or endowment policy, proceeds, or cash value
Mass. Gen. Laws ch. 175, § 125
- Medical malpractice self-insurance
Mass. Gen. Laws ch. 175F, § 15
Federal Exemptions
- Disability, illness, or unemployment benefits
11 U.S.C. § 522 (d)(10)(C)
- Federal government employee death & disability benefits
5 U.S.C. § 8130
- Federal judges, U.S. court & judicial center directors, administrative assistants to U.S. Supreme Court Chief Justice
28 U.S.C. § 376
- Federal war risk, hazard, death, or injury compensation, death & disability benefits
42 U.S.C. § 916
- Life insurance payments from policy for person you depended on, needed for support
11 U.S.C. § 522 (d)(11)(C)
- Life insurance policy loan value, in accured dividends or interest, to $13,400
11 U.S.C. § 522 (d)(8)
- Lighthouse workers survivors' benefits
33 U.S.C. § 775
- Longshoremen & harbor workers death & disability benefits
33 U.S.C. § 916
- Military group life insurance
38 U.S.C. § 1970 (g)
- U.S. Military service survivors' benefits
10 U.S.C. § 1450
- Unamtured life insurance contract, except credit insurance policy
11 U.S.C. § 522 (d)(7)
^ Top - Massachusetts Bankruptcy Exemptions
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Miscellaneous other exemptions for Massachusetts
Massachusetts Exemptions
- Property of business partnership
Mass. Gen. Laws ch. 108A, § 25
Federal Exemptions
- Alimony, child support needed for support
11 U.S.C. § 522 (d)(10)(D)
^ Top - Massachusetts Bankruptcy Exemptions
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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 all_law_table_items. 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 forspecial 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)
- Federal civil service employees
5 U.S.C. § 8346
- Foreign Service Employees
22 U.S.C. § 4060
- Military Medal of Honor roll pensions
38 U.S.C. § 1562 (c)
- Military service employees
10 U.S.C. § 1440
- Railroad workers
45 U.S.C. § 231m
- Social Security
42 U.S.C. § 407
- U.S. veterans' benefits
38 U.S.C. § 3501
Massachusetts Exemptions
- Credit union employees
Mass. Gen. Laws ch. 171, § 84
- ERISA-qualified benefits, including IRAs. Exempt IRA contributions for previous 5 years limited to 7% of income.
Mass. Gen. Laws ch. 235, § 34A
Mass. Gen. Laws ch. 246, § 28
- Private retirement benefits
Mass. Gen. Laws ch. 32, § 41
- Public employees
Mass. Gen. Laws ch. 32, § 19
- Savings bank employees
Mass. Gen. Laws ch. 168, § 41 (repealed - eff 2014)
Mass. Gen. Laws ch. 168, § 44 (repealed - eff 2014)
Mass. Gen. Laws ch. 168, § 32
^ Top - Massachusetts Bankruptcy Exemptions
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Massachusetts Personal Property Exemptions
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.
Massachusetts Exemptions
- 2 cows, 12 sheep, 2 swine, 4 tons of hay
Mass. Gen. Laws ch. 235, § 34 (4)
- Bank deposits to $2,500
Mass. Gen. Laws ch. 235, § 34 (15)
Mass. Gen. Laws ch. 246, § 28A
- Beds & bedding; heating unit, stove, refrigerator, freezer & hot water heater; clothing
Mass. Gen. Laws ch. 235, § 34 (1)
- Bibles & books to $500 total
Mass. Gen. Laws ch. 235, § 34 (3)
- Burial plots, tombs, & church pew
Mass. Gen. Laws ch. 235, § 34 (11)
- Cash for fuel, heat, water, or light to $500 per month
Mass. Gen. Laws ch. 235, § 34 (1)
- Cash to $2,500/month for rent, in lieu of homestead
Mass. Gen. Laws ch. 235, § 34 (14)
- Cooperative association shares to $100
Mass. Gen. Laws ch. 235, § 34 (13)
- Food or cash for food to $600
Mass. Gen. Laws ch. 235, § 34 (7)
- Household furnishings to $15,000
Mass. Gen. Laws ch. 235, § 34 (2)
- Jewelry to $1,225
Mass. Gen. Laws ch. 235, § 34 (18)
- Motor vehicle to $7,500; to $15,000 if used by elderly or disabled debtor
Mass. Gen. Laws ch. 235, § 34 (16)
- Moving expenses for eminent domain
Mass. Gen. Laws ch. 79, § 6A
- Sewing machine/computer/TV to $300
Mass. Gen. Laws ch. 235, § 34 (12)
- Trust company, bank, or credit union deposits to $2500
Mass. Gen. Laws ch. 246, § 28A
Federal Exemptions
- Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $625 per item, $13,400 total
11 U.S.C. § 522 (d)(3)
- Health aids
11 U.S.C. § 522 (d)(9)
- Jewelry to $1,700
11 U.S.C. § 522 (d)(4)
- Lost earnings payments
11 U.S.C. § 522 (d)(11)(E)
- Military deposits in savings accounts while on permanent duty outside the U.S.
10 U.S.C. § 1035
- Motor vehicle to $4,000
11 U.S.C. § 522 (d)(2)
- Personal injury recoveries to $25,150 (not to include pain & suffering or pecuniary loss)
11 U.S.C. § 522 (d)(11)(D)
- Wrongful death recoveries for person you depended on
11 U.S.C. § 522 (d)(11)(B)
Auto Valuation Tools:
Both of these websites offer interactive tools to determine the current value of your used car.
^ Top - Massachusetts Bankruptcy Exemptions
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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.
Massachusetts Exemptions
- Aid to families with dependent children
Mass. Gen. Laws ch. 118, § 10
- Public assistance
Mass. Gen. Laws ch. 235, § 34
- Unemployment compensation
Mass. Gen. Laws ch. 151A, § 36
- Veterans' benefits
Mass. Gen. Laws ch. 115, § 5
- Workers' compensation
Mass. Gen. Laws ch. 152, § 47
Federal Exemptions
- Crime victims' compensation
11 U.S.C. § 522 (d)(11)(A)
- Local public assistance
11 U.S.C. § 522 (d)(10)(A)
In re Goertz, 202 B.R. 614 (Bankr.S.D.Mo. 1996)
- Social Security
11 U.S.C. § 522 (d)(10)(A)
- Unemployment compensation
11 U.S.C. § 522 (d)(10)(A)
- Veteran's benefits
11 U.S.C. § 522 (d)(10)(A)
^ Top - Massachusetts Bankruptcy Exemptions
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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.
Massachusetts Exemptions
- Arms, accoutrements, & uniforms required
Mass. Gen. Laws ch. 235, § 34
- Fishing boats, tackle, & nets to $1,500
Mass. Gen. Laws ch. 235, § 34 (9)
- Materials and stock for trade or business $5,000
Mass. Gen. Laws ch. 235, § 34 (6)
- Tools, implements, & fixtures to $5,000 total
Mass. Gen. Laws ch. 235, § 34 (5)
Federal Exemptions
- Implements, books, & tools of trade to $2,525
11 U.S.C. § 522 (d)(6)
^ Top - Massachusetts Bankruptcy Exemptions
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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.
Massachusetts Exemptions
- Earned but unpaid wages to 85% of gross wages OR 50 times minimum wage per week
Mass. Gen. Laws ch. 246, § 28
Mass. Gen. Laws ch. 235, § 34 (15)
Federal Exemptions
- Minimum 75% of disposable weekly earnings or 30 times the federal hourly wage, whichever is more; bankruptcy judge may authorize more for low-income debtors. NOTE: Declared not a bankruptcy exemption by numerous Federal courts
15 U.S.C. § 1673
- None
11 U.S.C. § 522 (d)
^ Top - Massachusetts Bankruptcy Exemptions
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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.
Massachusetts Exemptions
- any property up to $1,000 plus up to $5,000 unused about of exemptions for automobile, household furnishings, and tools of trade
Mass. Gen. Laws ch. 235, § 34 (17)
Federal Exemptions
- $1,325 of any property
11 U.S.C. § 522 (d)(5)
- Up to $12,575 of unused homestead exemption amount, for any property.
11 U.S.C. § 522 (d)(5)
^ Top - Massachusetts Bankruptcy Exemptions
Links About Massachusetts Bankruptcy Exemptions
- New Mass exemtpions April 2011 -
- Massachusetts Registry of Deeds - Homestead Declaration Info - A good source of plain English information on how to file a Massachusetts homestead declaration.