Filing for Bankruptcy in Massachusetts

When filing for bankruptcy in Massachusetts, you’ll need to understand federal law and Massachusetts’s exemption laws. This article provides instructions for filing for bankruptcy in Massachusetts.

By , Attorney · University of the Pacific McGeorge School of Law

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Facing financial challenges is a part of life. But if you're one of the millions struggling financially due to a job loss, illness, or another event in Massachusetts, bankruptcy can help. Here, you'll find an explanation of Chapters 7 and 13, checklists to help you understand the process and stay organized, and Massachusetts's property exemption laws and filing information.

Because we couldn't include everything in one article, you'll want to check out its companion, What You Need to Know to File for Bankruptcy. You'll find lots more details there.

How Does Bankruptcy Work in Massachusetts?

In most respects, filing for bankruptcy in Massachusetts isn't different from filing in another state. The bankruptcy process falls under federal law, not Massachusetts state law, and works by unwinding the contracts between you and your creditors. That's what gives you a fresh start.

But Massachusetts's laws come into play in a significant way because they determine the property you can keep in your bankruptcy case. You'll also need to know other filing information, which we explain after reviewing some basics.

How Do I Choose the Right Bankruptcy Chapter in Massachusetts?

Most people file either Chapter 7 or Chapter 13, and you're not alone if you don't know how the two differ. The short explanation below and our handy Chapter 7 versus 13 chart will help clarify things.

Filing for Chapter 7 in Massachusetts

Chapter 7 is often a bankruptcy filer's first choice for several reasons. It's quick, taking only a few months to complete. And it's cheap. You don't pay anything to creditors.

Chapter 7 bankruptcy works well for people who own mainly the essential items needed to live and work and not much else. People with more assets could lose them in Chapter 7 because the Chapter 7 trustee, the official responsible for the case, sells unnecessary luxury items and distributes the proceeds to creditors. For instance, you might have to give up your RV, baseball card collection, or timeshare in the Bahamas, even your house or vehicle if you have more equity than you're allowed to keep.

Also, unlike Chapter 13, Chapter 7 has no payment plan option for catching up on late mortgage or car payments. So you could lose your home or car if you're behind on the loan when you file.

Filing for Chapter 13 in Massachusetts

Chapter 13 involves repaying creditors some or all of what's owed using a three- to five-year repayment plan. Chapter 13 filers keep everything they own, and the payment plan provides ways to improve sticky financial situations.

For instance, you can catch up on late payments and save your home from foreclosure or your car from repossession. Also, if you need time to repay a debt you can't eliminate or "discharge" in bankruptcy, you can use Chapter 13 to force a creditor into a payment plan and repay your balance over time. Learn more about when filing for Chapter 13 is better than Chapter 7.

The biggest downside to this chapter? It can be expensive. Many people can't afford the monthly payment. Also, businesses can't file a Chapter 13 case. If you're a business owner, it's a good idea to learn about the ins and outs of small business bankruptcies before choosing the bankruptcy right for you.

Will Filing for Bankruptcy in Massachusetts Erase My Debts?

Bankruptcy wipes out many bills, like credit card balances, overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you're willing to give up the house or car that secures the debt. (Putting property up as collateral creates a "secured debt." If you don't pay what you owe, the lender recovers the property.)

But you can't discharge all debts. You'll want to be sure that bankruptcy will discharge (get rid of) enough bills to make it worthwhile.

For instance, nondischargeable debts, like domestic support arrearages and recent tax debt, won't go away in bankruptcy. Also, student loans aren't easy to wipe out because you'd have to win a separate lawsuit (however, in 2023, steps have been taken to ease the student loan discharge process with a new student loan bankruptcy form).

Learn more about student loans in bankruptcy.

How Do I Qualify for Chapter 7 or Chapter 13 Bankruptcy in Massachusetts?

You won't be surprised to learn that qualifying for bankruptcy involves meeting several requirements. Because you're only entitled to a discharge every few years, if you've filed before, you'll want to check whether enough time has passed to allow you to file again. The waiting period varies depending on the chapter previously filed and the chapter you plan to file. Learn more about multiple bankruptcy filings.

You'll also need to meet specific chapter requirements. Here are the qualification basics for Chapters 7 and 13.

Chapter 7 Bankruptcy Qualifications

You'll qualify for Chapter 7 bankruptcy if your family's gross income is lower than the median income for the same size family in your state. Add all gross income earned during the last six months and multiply it by two. Compare the figure to the income charts on the U.S. Trustee's website (select "Means Testing Information").

Want an easy way to do this online? Use the Quick Median Income Test. If you make too much, you still might qualify after taking the second part of the "means test." If, after subtracting expenses, you don't have enough remaining to pay into a Chapter 13 plan, you'll qualify for Chapter 7.

Chapter 13 Bankruptcy Qualifications

Qualifying for Chapter 13 can be expensive because the extra benefits come at a hefty price, and many people can't afford the monthly payment. To qualify, you'll pay the larger of:

  • your priority nondischargeable debt
  • the value of nonexempt property, or
  • your disposable income.

Find out more about calculating a Chapter 13 bankruptcy payment.

How Do I Keep Property in Massachusetts Using Bankruptcy Exemptions?

You won't lose everything in bankruptcy. You'll use bankruptcy exemption laws to protect your property. We list the significant exemptions below, but first, understanding the following will help you maximize what you'll keep in your case.

  • Exempt and nonexempt property. You can keep property protected by an exemption or "exempt" property. When a bankruptcy exemption doesn't cover the property, you'll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan.
  • Choosing state or federal exemptions. You can choose whether you use the state exemption list or the list of federal bankruptcy exemptions, but you can't mix and match exemptions from both sets. Filers who use state exemptions can also use the federal nonbankruptcy exemptions.
  • Doubling exemptions. In many instances, spouses filing together can double the exemption amount if both own the property.
  • Retirement accounts all filers can protect. Federal law allows all filers to keep tax-exempt retirement accounts, including 401(K)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans and traditional and Roth IRAs to $1,512,350 per person (for cases filed between April 1, 2022, and March 31, 2025). (11 U.S.C. 522(b)(3)(C); (n).) Learn more about retirement accounts in bankruptcy.

What Are the Bankruptcy Exemptions in Massachusetts?

Filers can protect some home and vehicle equity, personal possessions, retirement accounts, and more. Below is a list of the exemptions filers use regularly when filing for bankruptcy.

Massachusetts Homestead Exemption

Debtors can exempt up to $125,000 of equity in their residence. The exemption amount increases to $500,000 if a "Declaration of Homestead" is filed with the Registry of Deeds can exempt. Debtors over 62 or with a disability can also claim the higher amount. Although spouses cannot double the exemption, exceptions exist for the elderly and individuals with disabilities. (Mass. Ann. Laws ch. 188, §§ 1-14.) Interests of a non-debtor spouse in property held as tenancy by the entirety (an attorney can explain these rights). (11 U.S.C. § 522 (b)(3)(B).)
Learn more about qualifying for the Massachusetts homestead exemption in bankruptcy.

Massachusetts Motor Vehicle Exemption

Filers can protect up to $7,500 in equity in one motor vehicle or $15,000 if owned or substantially used by a person with a disability or over 60. (Mass. Ann. Laws ch. 235, § 34.) Find out how the motor vehicle exemption works in a Chapter 7 case.

Other Massachusetts Bankruptcy Exemptions

  • Cemeteries and burial property. (Mass. Ann. Laws ch. 235, § 34.)
  • Displacement benefits. Moving expenses if you must move due to eminent domain. (Mass. Ann. Laws ch. 79, § 6A.)
  • Fraternal Benefit Society benefits. (Mass. Ann. Laws ch. 176, § 22.)
  • Rented residential property. Renters can exempt rent (not to exceed $2,500 per month) for each rental period. (Mass. Ann. Laws ch. 235, § 34.)
  • Insurance benefits. $400 per week in disability insurance benefits; healthcare provider self-insurance funds, insurance policies, and annuity contracts payable to the insured's spouse or dependent. (Mass. Ann. Laws ch. 175, §§ 110A; 175-36B, 119A, 125, 126, 132C, 135; ch. 175, § 15. (In re Sloss, 279 B.R. 6 (Bankr. D. Mass 2002).)
  • Partnership property. Specific partnership property is exempt. (Mass. Ann. Laws ch. 235, § 34.)
  • Pension and retirement benefits. Retirement benefits, except for benefits subject to claims under support orders. (Mass. Ann. Laws ch. 32, § 19; ch. 168, § § 41 and 44; ch. 170, § 35; ch. 171, § 84; ch. 246, § 28.)
  • Personal property. Clothing and beds; $15,000 in household furniture; $1,225 in jewelry; one heating unit; $500 per month for utilities; $500 in books; two cows, 12 sheep, two swine, and four tons of hay; $600 in provisions; military uniforms; a pew in a house of public worship; $300 sewing machine; $2,500 in cash or deposit accounts; $100 shares in a cooperative. (Mass. Ann. Laws ch. 235, § 34; ch. 246, § 28.)
  • Rent money. $2,500 in lieu of homestead exemption. (Mass. Ann. Laws ch. 235, § 34.)
  • Public assistance. (Mass. Ann. Laws ch. 118, § 10; ch. 235, § 34.)
  • Tools needed in a profession. $5,000 in tools, implements, fixtures; $1,500 in business-related fishing gear; and military uniforms and arms. (Mass. Ann. Laws ch. 235, § 34.)
  • Unemployment compensation. Exempt except for certain support obligations. (Mass. Ann. Laws ch. 151A, § 36.)
  • Veterans benefits. (Mass. Ann. Laws ch. 115, § 5.)
  • Wages. The greater of 85% of gross earnings or 50 times the Massachusetts minimum hourly wage per week. (Mass. Ann. Laws ch. 115, § 5.)
  • Wildcard. $1,000 plus up to $5,000 of any unused exemption amount for automobile, tools of the trade, and household furniture exemptions. (Mass. Ann. Laws. ch. 235, § 34(17).)
  • Worker's compensation. Exempt except for certain state agency and support obligations. (Mass. Ann. Laws ch. 152, § 47.)

State exemption amounts are adjusted periodically and are not being updated in this article. Be sure to verify your exemptions with a bankruptcy lawyer or visit the Massachusetts legislative website.

When Can I Use Massachusetts Bankruptcy Exemptions?

You can file for bankruptcy in Massachusetts after living there for over 180 days. However, you must live in Massachusetts for at least 730 days before filing. Otherwise, you'd use the previous state's exemptions.

If you lived in multiple states during the two years before filing for bankruptcy, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)

Learn more about filing for bankruptcy after moving to a new state.

How Do I Prevent Bankruptcy Exemption Problems?

Exempt your property carefully. The bankruptcy trustee, the court-appointed official assigned to manage your case, will review the exemptions. A trustee who disagrees with your exemptions will likely try to resolve the issue informally. If unsuccessful, the trustee will file an objection with the bankruptcy court, and the judge will decide whether you can keep the property.

Example. Mason owns a rare, classic car worth $15,000, but the state vehicle exemption doesn't cover it entirely. Believing that the car qualifies as art, at least in his mind, Mason exempts it using his state's unlimited artwork exemption. The trustee disagrees with Mason's characterization and files an objection with the court. The judge will likely decide the vehicle doesn't qualify as art.

Purposefully making inaccurate statements could be considered fraudulent. Bankruptcy fraud is punishable by up to $250,000, 20 years in prison, or both.

Should I Hire a Bankruptcy Lawyer in Massachusetts?

Most people find it worthwhile to get counsel. A bankruptcy attorney will help you:

  • qualify for the chapter of your choice
  • determine when it's time to file
  • help you keep the property you want
  • make sure you don't run afoul of fraud or other issues, and
  • explain when you can stop paying the bills you'll erase in your case.

You can expect creditors to call until you file. It's usually best to ignore them because telling creditors about your bankruptcy can encourage them to take more drastic collection steps before losing the right to collect altogether. However, if you hire counsel and refer creditors to your lawyer, they'll have to stop calling you.

How Do I File for Bankruptcy in Massachusetts Without a Lawyer?

You'll complete the steps listed below in "What Steps Are Involved in a Massachusetts Bankruptcy?" But not everyone should file their own bankruptcy case.

The best candidate is a Chapter 7 debtor who meets qualification requirements, can eliminate all debts, and can protect all property with bankruptcy exemptions. People filing for Chapter 13 or Chapter 7 filers with complicated cases should seek representation.

Are you curious whether your case is simple enough to file yourself? Our quiz will help you identify potential complications while educating you about bankruptcy. You'll find it here: Do I Need a Lawyer to File for Bankruptcy?

How Much Does It Cost to File for Bankruptcy in Massachusetts?

All filers pay a $338 filing fee in Chapter 7 unless the court grants a fee waiver and a $313 filing fee in Chapter 13 (amounts current as of August 2023). You'll also pay approximately $50 to $75 for credit counseling and debt management courses.

If you hire a bankruptcy lawyer to represent you, you can expect to pay from $1,500 to $2,500 upfront for most Chapter 7 cases, although the price will depend on the going rates in your area and case complexity. Chapter 13 legal fees run about $1,000 to $1,500 more, but you can pay them in installments through the Chapter 13 payment plan.

Learn about your options if you can't afford to hire a bankruptcy attorney.

What Steps Are Involved in a Massachusetts Bankruptcy?

We all know that seeing the forest helps us recognize the trees. Similarly, understanding the significant steps you'll take during your bankruptcy journey. will help you understand the bankruptcy process. Think of this checklist as a roadmap, but you can also use it to track your progress.

Bankruptcy Steps Checklist

What Do I Need to File for Bankruptcy in Massachusetts?

Once you decide to file, the fun begins! Well, not really. You'll start by gathering your financial information, which can take time. But our bankruptcy document checklist should help you organize what you or your attorney will need.

Bankruptcy Document Checklist

Where Do I Find the Massachusetts Bankruptcy Court Website and Locations?

Your case starts when you file your paperwork with the local bankruptcy court. On the Massachusetts Bankruptcy Court website, you'll find helpful information, including instructions for filing your paperwork and the location that services your zip code, by clicking "Debtor Information" on the far right of the menu bar.

Also, each court creates rules you must follow, and some have local forms. You'll find the information on the court's website.




John W. McCormack Courthouse

5 Post Office Square, Ste 1150

Boston, MA 02109-3945

Phone: (617) 748-5300

Fax: (617) 748-5315

Donohue Federal Building

595 Main Street, Room 211

Worcester, MA 01608-2076

Phone: (508) 770-8900

Fax: (508) 770-8975

United States Courthouse

300 State Street

Springfield, MA 01105

Phone: (413) 785-6900

Fax: (413) 781-9477

What Happens After Filing for Bankruptcy in Massachusetts?

Your creditors will stop bothering you soon after you file. It takes a few days because the court mails your creditors notice of the "automatic stay" order that prevents most creditors from continuing to ask you to pay them. Here's what will happen next:

  • You'll turn over financial documents proving the statements in your bankruptcy paperwork.
  • You'll attend the 341 meeting of creditors—the one appearance all filers must attend.
  • You'll complete a debtor education course and file the completion certificate.

These things must happen before you get a Chapter 7 bankruptcy discharge. Chapter 13 filers will also attend a repayment plan confirmation hearing and complete the three- to five-year payment plan.

Need More Bankruptcy Help?

Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

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Helpful Bankruptcy Sites

Department of Justice U.S. Trustee Program

United States Courts Bankruptcy Forms

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated August 25, 2023

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