Bankruptcy Laws in Massachusetts.

Federal filing fees apply. Fee waivers or installment plans may be available for debtors who qualify based on income.

Debtors must complete credit counseling from an approved agency within 180 days before filing. A debtor education course is required before discharge.

Chapter 7 filers must pass the means test based on Massachusetts median income levels. If income exceeds the median, the test evaluates allowable expenses to determine eligibility.

An automatic homestead exemption of $125,000 applies to all homeowners without any filing requirement. A declared homestead (recorded at Registry of Deeds) increases the exemption to $500,000 per residence. For elderly (62+) or disabled homeowners, the declared exemption is also $500,000. Two owners who each declare can protect up to $500,000 total (not $1M).

Key exemptions include: motor vehicle up to $7,500, household furniture up to $15,000, tools of the trade up to $5,000, cash or savings up to $2,500, clothing and personal effects as needed, and jewelry up to $1,225.

Wages are exempt from creditor attachment up to $750 per week. This is more generous than the federal exemption in most cases.

Tax-qualified retirement accounts (401(k), IRA, pension plans) are fully exempt from creditor claims in bankruptcy. This includes amounts reasonably necessary for the support of the debtor and dependents.

Massachusetts has opted out of the federal bankruptcy exemption scheme. Debtors must use Massachusetts state exemptions.