Bankruptcy Exemptions in Massachusetts
What property you can keep in bankruptcy in Massachusetts: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Filers may choose either the Massachusetts exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d). 11 U.S.C. 522(b)(1)-(3); M.G.L. c. 235, § 34
| State or federal exemptions | Filers may choose either the Massachusetts exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d). No Massachusetts statute denying the federal exemptions was identified. Under 11 U.S.C. 522(b)(2), the federal list applies unless state law "specifically does not so authorize." Spouses filing together must both use the same system. Which state's exemptions apply depends on where the filer was domiciled for the 730 days before filing (522(b)(3)(A)). |
|---|---|
| Homestead exemption | An automatic homestead exemption of $125,000 applies to a principal residence without any filing. A declared homestead exemption of $1,000,000 is available by recording a written homestead declaration. For joint tenants or tenants by the entirety the exemption stays whole (not split) but owners together cannot exceed the cap; for tenants in common or trust beneficiaries it is divided among the owners. Elderly (62+) or disabled owners may record a separate declaration under section 2. No acreage limit is stated. Source: M.G.L. c. 188, §§ 1, 3 |
| Car exemption | An automobile needed for personal transportation or to keep a job, up to $7,500 in wholesale resale value; up to $15,000 for a vehicle owned or substantially used by a debtor who is handicapped or 60 or older. |
| Wildcard exemption | Any personal property up to $1,000, plus up to $5,000 of any unused amount of the household furniture (Second), tools/equipment (Fifth) and automobile (Sixteenth) exemptions. |
| Retirement accounts | Interests in ERISA pension, annuity and profit-sharing plans, Keogh plans, 401(a) plans, SEPs, 403(b) annuities, and IRAs (and annuities bought with their distributions) are exempt from insolvency laws and from attachment. Source: M.G.L. c. 235, § 34A |
| Wages | Wages equal to the greater of 85% of gross wages or 50 times the higher of the federal or Massachusetts hourly minimum wage for each week, plus $2,500 in cash or bank or investment deposits, and all public assistance. |
More Massachusetts bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Massachusetts?
Filers may choose either the Massachusetts exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d).
How much home equity is protected in bankruptcy in Massachusetts?
An automatic homestead exemption of $125,000 applies to a principal residence without any filing. A declared homestead exemption of $1,000,000 is available by recording a written homestead declaration. For joint tenants or tenants by the entirety the exemption stays whole (not split) but owners together cannot exceed the cap; for tenants in common or trust beneficiaries it is divided among the owners. Elderly (62+) or disabled owners may record a separate declaration under section 2.
Can I keep my car in bankruptcy in Massachusetts?
An automobile needed for personal transportation or to keep a job, up to $7,500 in wholesale resale value; up to $15,000 for a vehicle owned or substantially used by a debtor who is handicapped or 60 or older.
Does Massachusetts have a wildcard exemption?
Any personal property up to $1,000, plus up to $5,000 of any unused amount of the household furniture (Second), tools/equipment (Fifth) and automobile (Sixteenth) exemptions.
Are retirement accounts protected in bankruptcy in Massachusetts?
Interests in ERISA pension, annuity and profit-sharing plans, Keogh plans, 401(a) plans, SEPs, 403(b) annuities, and IRAs (and annuities bought with their distributions) are exempt from insolvency laws and from attachment.
Are wages protected in bankruptcy in Massachusetts?
Wages equal to the greater of 85% of gross wages or 50 times the higher of the federal or Massachusetts hourly minimum wage for each week, plus $2,500 in cash or bank or investment deposits, and all public assistance.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.