What will I keep? - State/Federal Exemptions
Below we have provided answers to many of the common questions that we are asked by our clients regarding protecting their house. If you would like more information please do not hesitate to call us at 508.655.5980 or e-mail us.
What is an Exemption?
When filing for Bankruptcy certain property of the debtor is exempt from the Bankruptcy estate, which means that it is not subject to being taken by the Trustee and used to pay your debts.Do I have a choice of Exemptions?
When filing a Bankruptcy as a resident of Massachusetts a debtor can choose to use the exemptions allowed under either State or Federal law, but you must choose one or the other. There are many exemptions that are similar under both schemes, such as the exemption of most qualified retirement plans. Below is a table of the maximum exemptions as of April 14, 2011 in categories where the state and federal exemptions differ significantly. On Apri 7, 2011 a new Massachusetts law went into effect significantly increasing the personal property of Massachusetts residents that is protected from seizure by creditors. Please note that these figures are subject to change and you should consult with an attorney to obtain the most current figures and to decide which option you should choose.| Type of Property | Federal Exemptions | Massachusetts Exemptions |
| Your residence/Homestead | $20,200 | up to $500,000 |
| One motor vehicle | $3,225 | $7,500 |
| Household goods | $10,775* | $15,000* |
| Jewelry | $1,350 | $1,225 |
| Professional Books & Tools / Materials | $2,025 total | $5,000 / $5,000 |
| Accrued Dividend or Interest in Life Insurance | $10,775 | $0 |
| Personal Injury Award not including pain and suffering or compensation for actual pecuniary loss | $20,200 | $0 |
| "Wild Card" | $1,075** | $5,000*** |
*with limits on max value per any particular item.
**Plus up to $10,125 of any unused amount of the residence/homestead exemption
*** In addition to the Massachusetts catch-all, there are a number of other small exemptions allowed by Massachusetts law including $500 in bibles and school books, $2,500 in cash or savings, $600 if food money for family, $300 in a sewing machine, one computer and one television, $100 in shares in a co-op, and 2 cows, 12 sheep, 2 swine, and 4 tons of hay.
In addition certain types of income may also be exempt from the bankruptcy estate. You should consult with an attorney to obtain further information.
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