Bankruptcy in Massachusetts - Massachusetts exemptions

The Massachusetts bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Massachusetts. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)

In Massachusetts, you also have the choice of using the federal exemption statutes instead of your Massachusetts exemptions.

An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.

If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.

When you file bankruptcy in Massachusetts you may also use certain federal exemptions in addition to your Massachusetts exemptions.

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
HOMESTEAD	Property you occupy to $100,000; if over 65 or disabled, $200,000 (joint owners may not double)	188.1, 188-1A
	Must record homestead declaration before filing bankruptcy	188-2
	Spouse or child of deceased owner may claim homestead exemption	188-4
	Property held as tenancy be the entirety may be exempt against non-necessity debts	209-1
PERSONAL PROPERTY	Bank deposits to $125; food or cash for food to $300	235-34
	Beds, bedding and heating unit; clothing needed	235-34
	Bibles and books to $200 total; sewing machine to $200	235-34
	Burial plots, tombs and church pew	235-34
	Cash for fuel, heat, water or light to $75 per month	235-34
	Cash to $200 per month for rent, in lieu of homestead	235-34
	Cooperative association shares to $100	235-34
	2 cows, 12 sheep, 2 swine, 4 tons of hay	235-34
	Furniture to $3,000; motor vehicle to $750	235-34
	Moving expenses for eminent domain	79-6A
	Trust company, bank or credit union deposits to $500	246-28A
INSURANCE	Disability benefits to $400 per week	175-110A
	Fraternal benefit society benefits	176-22
	Group annuity policy or proceeds	175-132C
	Group life insurance policy	175-135
	Life or endowment policy, proceeds or cash value	175-125
	Life insurance annuity contract which says it�s exempt	175-125
	Life insurance policy if beneficiary is married woman	175-126
	Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary�s creditors	175-119A
	Medical malpractice self-insurance	175F-15
MISC.	Property of business partnership	108A-25
PENSIONS also see wages	ERISA-qualified benefits	235-34A, 246-28
	Private retirement benefits	32-41
	Public employees	32-19
	Savings bank employees	168-41, 168-44
PUBLIC BENEFITS	AFDC	118-10
	Aid to ages, disabled	235-34
	Unemployment compensation	151A-36
	Veterans� benefits	115-5
	Workers� compensation	152-47
TOOLS OF TRADE	Arms, accouterments and uniforms you�re required to keep	235-34
	Boats, fishing tackle and nets of fisherman to $500	235-34
	Materials you designed and procured to $500	235-34
	Tools, implements and fixtures to $500 total	235-34
WAGES	Earned but unpaid wages to $125 per week	246-28

For more information on filing bankruptcy in Massachusetts explore Massachusetts Bankruptcy Law.

Massachusetts Bankruptcy Exemptions