Massachusetts Bankruptcy Laws

Massachusetts has one bankruptcy court, the Massachusetts Bankruptcy District Court that has three locations: Boston , Springfield and Worcester . It serves the entire state of Massachusetts . Most people in Massachusetts file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK.

Massachusetts Bankruptcy Exemptions
Exempt property is property that you are allowed to keep in a chapter 7 bankruptcies. State law determines what property is exempt. According to Lawyers.com, you can choose one of two exemption schemes in Massachusetts : federal bankruptcy laws or the Common Wealth of Massachusetts.

Under federal bankruptcy laws, you can keep:

• Your home, including co-op or mobile home, to $20,200.
• Life insurance payments for person you depended on, needed for support.
• Life insurance policy with loan value, in accrued dividends or interest to $10,775.
• Unmatured life insurance contract, except credit insurance policy.
• Alimony, child support needed for support.
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support.
• $525 per item in any household goods up to a total of $10,775.
• Health Aids.
• Jewelry to $1,350.
• Lost earnings payments.
• Your motor vehicle to $3,225.
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits.
• Tools of trade up to $20,200.
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption.

Married couples may double the amount of the federal exemptions.

Under Massachusetts ankruptcy laws, you may keep:

• Your home, if you don't have more than $500,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages).
• Your car, if you don't have more than $750 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages).
• Necessary clothing, beds and bedding, one heating unit for warming your home and $75 per month to pay utility bills.
• Household furniture, up to $3,000 in value.
• Bibles, school books and family library, up to $200 in value.
• Two cows, 12 sheep, two swine and four tons of hay.
• Tools of your trade, up to $500 in value.
• Materials and stock of your trade, up to $500 in value.
• Food, other necessary consumables or cash for such provisions, up to $300 in value.
• Burial plots, tombs and one church pew.
• Boats, fishing tackle and nets of a fisherman if they are actually used in his/her business, up to $500 in value.
• Uniform of an officer or soldier in the militia and the arms and accoutrements required by law to be kept by him/her.
• One sewing machine, up to $200 in value.
• Share in cooperative associations, up to $100 in total value.
• $200 per month for rent, if you don't claim a homestead exemption.
• Cash, bank accounts and wages for each pay period, up to $125 total.
• Trust company, bank or credit union deposits to $500.
• ERISA-qualified pension benefits.
• Private retirement benefits.
• Public employees' and savings bank employees' pensions.
• Disability benefits, up to $400 per week.
• Fraternal benefit society benefits.
• Group annuity policy or proceeds.
• Medical malpractice self-insurance.
• Group life insurance policy.
• Life or endowment policy, proceeds or cash value.
• Exempt life insurance annuity contracts

• Life insurance proceeds if a clause in the policy prohibits the proceeds from being used to pay the beneficiary's creditors.
• AFDC, aid to the aged and/or disabled, workers' compensation, unemployment compensation and veterans' benefits.
• Property of a business partnership.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.