The bankruptcy exemptions in Massachusetts were established for the protection of homestead exemptions and other exempt properties while someone is filing Chapter 7 of the bankruptcy code. Massachusetts allows for either the state or the federal regulations to be used when filing bankruptcy. This means that you will have the choice between the two exemption lists depending. You are not allowed to use exemptions from both lists and so it is important to consider whether the state or federal exemptions are more beneficial to your situation.
How to Keep Your Car
Depending on whether you use the Massachusetts state exemptions or the federal exemptions will make a big difference in whether you are able to keep your motor vehicle.
- The Massachusetts exemption for motor vehicles allows up to a value of $750.
- The federal exemption for motor vehicles allows up to a value of $3,225.
How to Keep Your Home
Whether or not you are able to retain you home through the liquidation process of the Chapter 7 bankruptcy is also dependent on which bankruptcy exemption list you choose. The Massachusetts homestead exemption is far greater than the federal homestead exemption, so the chance of being able to retain your home under the state’s bankruptcy exemptions is more likely.
- Massachusetts homestead exemption allows for a home of up to a value of $100,000 to be retained.
- The homestead exemption must be declared before you start filing bankruptcy.
- Some protection is given under Massachusetts law if property is held as a tenancy.
- Federal exemptions for the homestead only allow up to a value of $20,200 to be retained.
Filing Schedule C of a Bankruptcy Petition
Regardless of whether you choose to file for bankruptcy under the Massachusetts state laws or under the federal laws, you will be required to file a schedule C form along with your Chapter 7 bankruptcy petition. This form will need to include descriptions of the exempt properties and the statute numbers that correspond with those exemptions. It is crucial that the form is filed out properly or the exemptions will not be applied.
Get Legal Advice for Your Case
If you are filing bankruptcy and you are hoping to protect any of your valuable assets, then it is extremely important that you consult with an experienced bankruptcy attorney. An attorney will be able to help you decide if the state or federal exemptions will provide superior protection for the assets that are most important to you.
