Massachusetts Bankruptcy Laws
Filing Bankruptcy in Massachusetts
If you’re a Massachusetts resident and you’re struggling with your finances, you’ve come to the right place.
This page is designed to help you discover how personal bankruptcy (Chapter 7 or Chapter 13 bankruptcy) may be able to help you get the fresh financial start you need.
To get started, we’ll tell you about what you can expect from your Chapter 7 or Chapter 13 bankruptcy filing. However, many people have specific questions about their situation, and you may benefit from speaking with a bankruptcy attorney.
Connect with a Massachusetts bankruptcy lawyer near you by filling out the free case evaluation on this page or calling 877-349-1309.
Massachusetts Bankruptcy Law
Chapter 7 bankruptcy is sometimes called “liquidation” because the bankruptcy court may be able to hold a liquidation sale if you file Chapter 7. In order to raise money to repay creditors, the court can sell a filer’s non-exempt assets. Converting your assets to cash via sale is also known as liquidation.
However, Massachusetts bankruptcy laws may protect many of your personal belongings from a liquidation sale, including your home and car. These protected items are known as exemptions. Anything under the exemptions is protected from sale, foreclosure and repossession.
Homestead
- Up to $500,000 for real property, including land and buildings.
Wages
Automobiles
- Up to $700 for one vehicle.
Personal Property
- 100 percent of necessary clothes, beds and bedding.
- $3,000 for household furniture.
- Bibles and books worth no more than $200.
- $500 of tools, implements and fixtures.
- $500 for materials and stock necessary for carrying on a trade or business.
- Up to $500 worth of boats, fishing tackle and nets.
- $125 of cash, savings or other bank deposits.
Chapter 13 bankruptcy is often called “reorganization.” This is because Chapter 13 allows you to reorganize your debts in a 3-5 year repayment plan. Because of the nature of the repayment plan, Chapter 13 tends to work best for filers who have a regular, steady income.
Chapter 13 bankruptcy is also famous for helping filers stop mortgage foreclosure. The automatic stay, which takes effect as soon as a bankruptcy case is filed, prevents creditors from taking any collection action against the filer. Foreclosure is a type of collection, so a Chapter 13 case may halt foreclosure for several years.
Talk to a Massachusetts Bankruptcy Lawyer Today.
As you may have noticed, the language of Massachusetts bankruptcy law can be confusing at times. If you’d like a professional opinion about the differences between Chapter 7 and Chapter 13 bankruptcy, you may benefit from consulting with a Massachusetts bankruptcy attorney.
To connect with Massachusetts bankruptcy lawyer near you, simply call us at 877-349-1309 or fill out the free case evaluation on this page. We’ll put you in touch with a local bankruptcy lawyer as soon as possible.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
Read the full text of the Massachusetts bankruptcy laws.
