Massachusetts Bankruptcy Exemptions
What property can you keep when filing Chapter 7 in Massachusetts?
Federal exemption option available: Massachusetts allows debtors to choose between state exemptions or the federal bankruptcy exemption schedule. You must pick one complete set.
Massachusetts Homestead Protection
$500,000
Massachusetts protects up to $500,000 of equity in your primary residence from creditors.
Massachusetts Exemption Table
2025/2026 figures — Chapter 7 bankruptcy
How to Claim Exemptions in Massachusetts
To claim your Massachusetts bankruptcy exemptions, you must list each exempt asset on Schedule C of your bankruptcy petition. You may choose between Massachusetts's state exemptions or the federal bankruptcy exemptions — you cannot mix and match. A bankruptcy preparer can help you determine which set of exemptions better protects your assets — all claims are subject to court approval.
How does Massachusetts compare to other states?
Use the side-by-side comparison tool to see which state offers more protection for your assets.
Frequently Asked Questions
How much home equity can I protect in Massachusetts bankruptcy?
Massachusetts's homestead exemption protects up to $500,000 of your home's equity. If your equity exceeds this amount, the Chapter 7 trustee may sell your home — though in practice, most filers don't exceed this limit.
Can I keep my car when filing bankruptcy in Massachusetts?
Massachusetts's vehicle exemption protects up to $7,500 in car equity. If your car is worth less than this (or your equity after the loan balance is within this limit), you can typically keep it. If you're financing the car, you may also reaffirm the debt to keep it regardless of equity.
Are retirement accounts protected in Massachusetts bankruptcy?
Yes — Massachusetts protects Unlimited in qualified retirement accounts. This includes 401(k), 403(b), IRA, and pension accounts. Retirement assets are among the strongest-protected assets in bankruptcy across all 50 states.
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Non-Attorney Notice: JustiPal™ is a document preparation service — not a law firm. Exemption amounts shown are for educational purposes and reflect general 2025/2026 figures. Individual results depend on your specific assets, equity calculations, and applicable state law. Consult a licensed bankruptcy attorney for legal advice specific to your situation.