MASSACHUSETTS BANKRUPTCY LAW

Massachusetts Bankruptcy: Attorneys, Statistics, Exemptions and Courts

Massachusetts Bankruptcy Statistics: In Massachusetts, in 2009, 20,966 bankruptcies were filed. Business bankruptcies accounted for 692 or 3.30% and personal bankruptcies accounted for 20, 274 or 96.70% of the total filings.

Massachusetts State Bankruptcy Exemptions

Homestead

The home is exempt up to $500,000. Massachusetts accepts any property where one resides as a “homestead” including mobile homes. This exemption amount applies equally to disable adults or senior citizens; however, there are special provisions which may be relevant to senior citizens or the disabled. In Massachusetts, to take advantage of this exemption, the debtor must file a homestead declaration before filing for bankruptcy. The spouse or the children of deceased home owner may claim the exemption.

When spouses own property as tenants by the entirety – the entire property may be exempt when filing bankruptcy; however only if the debt is incurred by only one of the spouses and the debt is not for necessities.

Personal Property

The following expenses or items are exempt in their entirety.

1. Moving expenses, when the previous property was taken under eminent domain
2. Heating Units
3. Clothing
4. Beds and bedding
5. Burial plots, tombs, and church pews

The following expense or items are exempt up to a specified limit.

1. Bank deposits are limited to $125
2. Books, including the bible, are limited to $200
3. Furniture is limited to $3000
4. Motor Vehicles are limited to $700
5. Personal sewing machine is limited to $200

The following exemptions apply to cash set aside to pay for necessary expenses.

1. Cash set aside to pay for fuel, heat, water or light is exempt up to $75 per month
2. Cash set aside to pay rent is exempt up to $200 a month, but only if the debtor is not claiming a homestead exemption
3. Cash for food or food are exempt up to $300.

The following exemptions apply to live stock and feed.

1. Hay – 4 tons
2. Cows – 2
3. Sheep – 12
4. Swine – 2

Pension

The following individuals’ and their survivors’ pension benefits are exempt when filing bankruptcy in Massachusetts:

1. Public Employees
2. Savings Bank employees
3. Credit Union Employees

The following pension types are exempt when filing for bankruptcy in Massachusetts:

1. Federal pension exemptions
2. ERISA qualified pension plans
3. Private retirement benefits - ex: IRAs, Keoghs

Insurance

The following insurance types are exempt when filing bankruptcy in Massachusetts.

1. Disability benefits limited to $400 a week
2. Fraternal Benefit society benefits
3. Group annuity policy or proceeds
4. Life insurance or annuity contract - only if there is valid clause forbidding the use of proceeds to pay creditors
5. Life insurance payout to the beneficiary – in its entirety only if the beneficiary is a married woman
6. Self-insurance for medical malpractice

Public Benefits

The following public benefits are exempt when filing bankruptcy in Massachusetts.

1. Veterans benefits
2. Aid to families with depend children
3. Unemployment compensation
4. Workers compensation
5. Public assistance

Tools of the trade

The following tools of the trade are exempt when filing bankruptcy in Massachusetts.

1. Uniforms, arms and accoutrements are exempt in their entirety
2. Fishing boats, tackle and nets are exempt up to $500
3. Materials procured and designed by debtor are exempt up to $500
4. Tools, implements and fixtures are exempt up to $500

Wages: All earned but unpaid wages are exempt not exceeding $125 a week.

Miscellaneous: Property owned by business where the debtor is a partner.

Wildcard: No

Federal Bankruptcy Exemptions: Yes

Massachusetts Bankruptcy Court:

United States Bankruptcy Court, District of Massachusetts