What Are Exemptions Under the Massachusetts Bankruptcy laws?

If you’ve made the decision to file for bankruptcy in Massachusetts (MA), you need to understand the exemptions available to you.

Bankruptcy laws in Massachusetts differ slightly from the federal statutes on bankruptcy.

Here are some exemptions granted by state laws for bankruptcy applications filed in Massachusetts:

Place of Residence: Also referred to as the homestead or main residence, the exemption is up to $125,000, or $500,000 if the homestead declaration is compliant with the MA laws. Homeowners with a disability or 62 years of age and above may each exempt up to $500,000 and not more than $1,000,000.

This exemption can also be claimed by a spouse or children of a deceased owner.

Personal Property: This exemption includes articles of bedding, heating units, stoves and refrigerators, computers, sewing machines, television, etc. Books are exempt up to $500 total, cash up to $2,500 for rent instead of place of residence, cash for heating or water, or fuel up to $500 per month, etc.

Articles such as banks, credit union deposits, etc. are also exempt up to $2,500.

Wages and Pension: Unpaid wages up to 85% are exempt. Exemption is also valid if calculated on 50 times the federal minimum wage.

Insurance: Insurance plans, such as disability benefits up to $400 per week, life insurance policies, life or endowment policies along with its proceeds, dividends, interest, etc. are exempt. Group annuity policies and group insurance policies are also exempt alongside medical malpractice self-insurance.

Pension exemptions are applied as per tax exempt retirement accounts, such as 401(k), profit-sharing plans, and SEP and defined benefit plans. Exemptions are different for public and private employees, for savings bank, and credit union employees, etc.

Workers’ compensation and unemployment compensations are also exempt, as are tools of trade, such as boats, fishing nets, etc. up to $1,500. Similarly, veterans’ benefits too are exempt up to a certain limit.

Reach Out For Help

What are the exemptions available to tenancies of homesteads? What about properties held in business partnerships? Unless you are a legal professional yourself, it is doubtful the extent of bankruptcy laws would be easy for you to understand. Which is why you need the assistance of someone who does, such as bankruptcy attorneys . They can help educate you and ensure you gain the best outcome from an event that is associated with worry and tension in the best of times.

If you or someone you know, is contemplating filing for bankruptcy in MA, contact a Massachusetts bankruptcy lawyer immediately.

About Us:

Legal Rights Advocates, PLLC is a law firm that specializes in helping clients who are facing bankruptcy and contemplating filing. Our team of attorneys, over the years, has helped countless clients gain freedom from the worries and stress resulting from events following a decision to file for bankruptcy .

If you are interested in learning more about filing for bankruptcy in Massachusetts and the options and exemptions available, call us at (855) 254-7841 for immediate assistance.