Massachusetts bankruptcy links and resources
 

Federal Bankruptcy Official Sites

United State Bankruptcy Court: District of Massachusetts

United States Trustee's Office

Bankruptcy Means Test

If your household income falls below the amount below; there is no presumption of abuse for filing a Chapter 7 Bankruptcy. (effective 11/1/11)

Family Size Household Income
1 $ 53,496
2 $ 64,174
3 $ 80,337
4 $ 99,067
5 $ 106,567

Add $7,500 for each individual over 5.

IRS National Standards for Food, Clothing and other Items

Expense One Person Two Persons Three Persons Four Persons
Food $300 $537 $639 $757
Housekeeping supplies $29 $66 $65 $74
Apparel & services $86 $162 $209 $244
Personal care products & services $32 $55 $61 $67
Miscellaneous $87 $165 $197 $235
Total $534 $985 $1,171 $1,377

 

More than four persons Additional Persons Amount
For each additional person, add to four-person total allowance: $262

Auto Operation Costs

One Car: $277 Two Cars: $556

 

Standard Exemptions

An exemption is property that you, the bankruptcy filer, get to keep when filing bankruptcy. This property is "exempt" from seizure.

In Massachusetts you have the option of choosing either the State Exemptions or Federal Exemptions. Your attorney will help you with this choice.

This is provided for information purposes only and should only be used for reference. Only an experienced bankruptcy attorney is qualified to claim exemptions on your bankruptcy petition and you should not use this information when attempting to file bankruptcy yourself.

STATE EXEMPTIONS

(this is a partial list as effective on April 7, 2011)

Homestead (applied to the equity in your residence)
$500,000*
Bank account (cash)
$2,500
Clothing/Beds/Bedding
unlimited
Bank account (cash for rent)
$2,500
Jewelry
$2,500
Wild Card
$5,000 (w/ limitations)
Household furniture and goods
$15,000
Tools of trade

$5,000
Retirement Account (IRA/401k)

unlimited
Motor vehicle
$7,500 ($15,000 elderly/disabled)

* to obtain the entire value of the homestead, you must have been the record owner of the property for at least 3.3 years. However, there are a few limited exceptions to this rule, for more information, you should contact us.

FEDERAL EXEMPTIONS

(this is a partial list and are due to change on April 1, 2013)

Homestead (applied to equity in your residence)
$21,625*
Life insurance policy with loan value, in accrued dividends or interest
$10,755

$550 per item in any household goods up to a total of $10,775;
$11,525
Jewelry $1,450
Motor vehicle $3,450
Personal injury compensation payments (excludes punitive damages) $21,625
Tools of trade - books and equipment $2,025
Qualified Retirement Plan (IRA, 401k, etc.) $1,171,650
Wild Card • $1150 of any property $1,150 plus $10,825 of unused portion of homestead (doubled for joint debtors)

* unused portion of homestead to $10,825 may be applied to any property under the wildcard exemption

Important Bankruptcy Rulings

In re Pelosi: This decision is important because it lays out the rule in Massachusetts that allows a debtor to avoid a wholly unsecured second mortgage on the debtor's primary residence.

FIA Card Services v. Conant: This decision outlines when it is appropriate to award attorney's fees to a debtor when a creditor files a frivolous lawsuit in an attempt to prevent its debt from being discharged.

Legal Articles

Handling Personal Income Taxes Through Bankruptcy: Income taxes present special problems and issues when it comes to bankruptcy. This article is a brief summary of the complicated rules that govern how a debtor's personal income taxes are handled in bankruptcy.