Massachusetts Debt Collection Laws: Time Limits, Garnishment and Your Rights
Massachusetts debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Massachusetts
- Time limit to sue on a written contract
- 6 years for contract actions, express or implied, written or oral. 20 years for contracts under seal. M.G.L. c. 260, § 2; c. 260, § 1
- Wage garnishment limit
- Stricter than federal law. The greater of 85% of gross wages or 50 times the higher of the federal or Massachusetts minimum hourly wage, for each week, is exempt from attachment (trustee process). M.G.L. c. 246, § 28; c. 235, § 34 (Fifteenth)
- Money protected in a bank account
- $2,500 in a bank or credit union account of an individual is exempt from attachment by trustee process; the bank must answer only for money above $2,500. A person may have only one $2,500 exemption at a time. M.G.L. c. 246, § 28A; c. 235, § 34 (Fifteenth)
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for contract actions, express or implied, written or oral. 20 years for contracts under seal. § 1: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleV/Chapter260/Section1 Source: M.G.L. c. 260, § 2; c. 260, § 1 |
|---|---|
| Time limit for credit cards and open accounts | 6 years, the same general contract period. Source: M.G.L. c. 260, § 2 |
| Can a payment restart the clock? | An acknowledgment or new promise extends the time to sue on a contract only if it is made in, or contained in, a writing signed by the person who owes the debt. Source: M.G.L. c. 260, § 13 |
| How long a judgment lasts | A judgment is presumed paid and satisfied 20 years after it was entered. Source: M.G.L. c. 260, § 20 |
Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law. The greater of 85% of gross wages or 50 times the higher of the federal or Massachusetts minimum hourly wage, for each week, is exempt from attachment (trustee process). The limit does not apply to support orders, where federal limits apply. Exemption is measured from gross wages, not disposable earnings. |
|---|---|
| Money protected in a bank account | $2,500 in a bank or credit union account of an individual is exempt from attachment by trustee process; the bank must answer only for money above $2,500. A person may have only one $2,500 exemption at a time. Public assistance payments are fully exempt. c. 235, § 34: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter235/Section34 |
| Homestead exemption | An automatic homestead exemption of $125,000 protects an owner's principal residence without any filing. A larger declared homestead exemption, created by recording a written homestead declaration at the registry of deeds, is $1,000,000 under the current statute text. It does not protect against taxes, earlier liens, mortgages or support orders. Renters may instead protect up to $2,500 a month needed for rent. § 3 exceptions: https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter188/Section3. |
| Vehicle exemption | One automobile needed for personal transportation or work, up to $7,500 in wholesale resale value; up to $15,000 if owned or substantially used by a debtor who is disabled or age 60 or older. Up to $5,000 of unused vehicle, furniture and tools exemptions can be added to a $1,000 general personal-property exemption (Seventeenth). Source: M.G.L. c. 235, § 34 (Sixteenth) |
| Claiming an exemption | The bank exemption is applied automatically: a bank served with a trustee summons must hold only money above $2,500, and the summons must describe the exemption. Small claims judges may order payment in installments and can stay execution. |
Debt collectors and interest
| State debt collection law | Yes. A creditor, the creditor's attorney, or an assignee collecting a consumer debt may not do so in an unfair, deceptive or unreasonable manner, including telling third parties about the debt, contacting the debtor after being told the debtor has a lawyer, harassment, or using forms that look like court papers. Violations count as unfair or deceptive practices under the Consumer Protection Act (c. 93A). This applies to original creditors. Source: M.G.L. c. 93, § 49 |
|---|---|
| Debt collector licensing | Yes. A debt collector must obtain a license from the Commissioner of Banks and keep a bond on file with the state treasurer before collecting in Massachusetts. Banks and credit unions are exempt. Source: M.G.L. c. 93, § 24A |
| Interest rate limits | In contract cases, interest is added at the contract rate if one is set, otherwise 12% a year from the date of breach or demand. A judgment bears interest from the day it is entered at the same rate. c. 235, § 8: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter235/Section8. Source: M.G.L. c. 231, § 6C; c. 235, § 8 |
Debt & Collections FAQ
What is the statute of limitations on debt in Massachusetts?
6 years for contract actions, express or implied, written or oral. 20 years for contracts under seal.
How long can a creditor sue on a credit card debt in Massachusetts?
6 years, the same general contract period.
Does making a payment restart the statute of limitations in Massachusetts?
An acknowledgment or new promise extends the time to sue on a contract only if it is made in, or contained in, a writing signed by the person who owes the debt.
How long does a court judgment last in Massachusetts?
A judgment is presumed paid and satisfied 20 years after it was entered.
How much of my wages can be garnished in Massachusetts?
Stricter than federal law. The greater of 85% of gross wages or 50 times the higher of the federal or Massachusetts minimum hourly wage, for each week, is exempt from attachment (trustee process). The limit does not apply to support orders, where federal limits apply.
How much money in a bank account is protected from creditors in Massachusetts?
$2,500 in a bank or credit union account of an individual is exempt from attachment by trustee process; the bank must answer only for money above $2,500. A person may have only one $2,500 exemption at a time. Public assistance payments are fully exempt.
What is the homestead exemption in Massachusetts?
An automatic homestead exemption of $125,000 protects an owner's principal residence without any filing. A larger declared homestead exemption, created by recording a written homestead declaration at the registry of deeds, is $1,000,000 under the current statute text. It does not protect against taxes, earlier liens, mortgages or support orders. Renters may instead protect up to $2,500 a month needed for rent.
Can a creditor take my car in Massachusetts?
One automobile needed for personal transportation or work, up to $7,500 in wholesale resale value; up to $15,000 if owned or substantially used by a debtor who is disabled or age 60 or older.
What debt collection practices are illegal in Massachusetts?
Yes. A creditor, the creditor's attorney, or an assignee collecting a consumer debt may not do so in an unfair, deceptive or unreasonable manner, including telling third parties about the debt, contacting the debtor after being told the debtor has a lawyer, harassment, or using forms that look like court papers. Violations count as unfair or deceptive practices under the Consumer Protection Act (c. 93A). This applies to original creditors.
Do debt collectors need a license in Massachusetts?
Yes. A debt collector must obtain a license from the Commissioner of Banks and keep a bond on file with the state treasurer before collecting in Massachusetts. Banks and credit unions are exempt.
What is the maximum legal interest rate in Massachusetts?
In contract cases, interest is added at the contract rate if one is set, otherwise 12% a year from the date of breach or demand. A judgment bears interest from the day it is entered at the same rate.
How do I stop a garnishment or claim an exemption in Massachusetts?
The bank exemption is applied automatically: a bank served with a trustee summons must hold only money above $2,500, and the summons must describe the exemption. Small claims judges may order payment in installments and can stay execution.
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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.