Massachusetts Bankruptcy Law
Bankruptcy Courts in Massachusetts
If you live in Massachusetts and are considering filing for bankruptcy, your case will be handled in the U.S. Bankruptcy Court for the District of Massachusetts, which has locations in Boston, Worcester, and Springfield. You’ll file in the division that covers the county where you live or where your main property or business is located.
All bankruptcy cases in Massachusetts follow federal bankruptcy law, but the court also has local rules and procedures that supplement those laws. Court decisions are guided by the U.S. Court of Appeals for the First Circuit, which also covers Maine, New Hampshire, Rhode Island, and Puerto Rico. Because local procedures and exemption choices can be complex, it’s best to work with a qualified bankruptcy attorney who can help protect your assets and ensure your filing complies with court requirements.
Bankruptcy Filing Trends in Massachusetts
Massachusetts consistently records several thousand consumer bankruptcy filings each year. Most are Chapter 7 cases, which allow filers to erase unsecured debts such as credit cards and medical bills. Chapter 13 repayment plans are also common among homeowners who need time to catch up on mortgage or car payments while keeping their property. Most bankruptcy filings occur in the Boston Division, followed by Worcester and Springfield.
Massachusetts and Federal Exemptions — What You Can Keep
Bankruptcy doesn’t mean losing everything you own. Exemption laws protect certain property—things you need to live and work—from being taken or sold to pay creditors.
Massachusetts allows debtors to choose between state and federal exemptions. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own. Choosing between exemption systems depends on your situation, so consulting a bankruptcy attorney is important.
Common Massachusetts Exemptions
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead – primary residence | $1,000,000 declared / $125,000 automatic |
| Homestead for seniors or disabled persons | $1,000,000 |
| Household furniture | $15,000 / $30,000 |
| Clothing, beds, heating unit, stove, refrigerator, freezer, water heater | Reasonable + $500/month utilities |
| Motor vehicle | $7,500 / $15,000 ($15,000 / $30,000 if elderly or disabled) |
| Tools of trade and materials of business | $5,000 / $10,000 each |
| Jewelry | $1,225 / $2,450 |
| Cash or bank deposits | $2,500 / $5,000 |
| Wildcard (any personal property) | $1,000 + unused vehicle or household exemption (up to $5,000) |
| Retirement and pension plans | 100 % |
| Life-insurance and annuity benefits | 100 % |
| Workers’ and unemployment compensation | 100 % |
| Veterans’ and public-assistance benefits | 100 % |
| Wages | Greater of 85 % gross or 50 × minimum wage per week |
Common Federal Exemptions
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Home equity | $31,575 / $63,150 |
| Motor vehicle | $5,025 / $10,050 |
| Household goods and furnishings | $16,850 / $33,700 |
| Jewelry | $2,125 / $4,250 |
| Wildcard (any property) | $1,675 + unused homestead (up to $15,800) |
| Tools of trade | $3,175 / $6,350 |
| Personal-injury compensation | $31,575 / $63,150 |
| Retirement plans and pensions | 100 % |
Because exemption limits differ between state and federal exemptions, an attorney can help you choose the option that provides the strongest protection based on your assets and income.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit counselling course from an approved provider. A second debtor education course is required before discharge.
Means test. To qualify for Chapter 7, your household income must be below Massachusetts’s median or pass a means-test calculation comparing income and expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments or apply for a waiver if you can’t pay in full.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” It’s not held before a judge. A bankruptcy trustee will confirm your identity and review your paperwork.
In Massachusetts, meetings are typically held virtually or in person at the courthouse in Boston, Worcester, or Springfield, depending on where your case was filed.
Local rules and forms. The court’s website lists all current local rules and forms. Following them carefully helps your case proceed smoothly.
What This Means for You
Filing for bankruptcy in Massachusetts can give you a fresh financial start and immediate protection from creditor actions. The automatic stay halts lawsuits, wage garnishments, foreclosures, and repossessions.
Most filers keep their homes, vehicles, and personal belongings. Because Massachusetts allows you to choose between state and federal exemptions, it’s especially important to consult a bankruptcy attorney before filing.
An attorney can help you:
- Decide whether Chapter 7 or Chapter 13 is best for your situation
- Choose the exemption system that maximizes protection for your property
- Complete the required counseling courses
- File all forms correctly and meet local deadlines
With experienced legal guidance and proper preparation, bankruptcy can help you eliminate debt and rebuild long-term financial stability.
U.S. Bankruptcy Court – District of Massachusetts (Boston Division)
Federal Circuit: First Circuit Court of Appeals
Court Location: Boston
Where You File Depends on Where You Live
The Boston Division serves residents of eastern Massachusetts, including the greater Boston metropolitan area, Cape Cod, and the Islands. Cases filed in this division are handled at the John W. McCormack Post Office and Courthouse in downtown Boston.
Counties Served
Barnstable County
Bristol County
Dukes County
Essex County
Middlesex County
Nantucket County
Norfolk County
Plymouth County
Suffolk County
If you’re unsure whether your county falls within the Boston Division, a bankruptcy attorney can confirm where to file and ensure your paperwork meets all local requirements.
Recent Filing Statistics
The Boston Division consistently records the largest number of consumer bankruptcy filings in the state. Chapter 7 cases are the most common, followed by Chapter 13 repayment plans used by homeowners and wage earners. Each year, thousands of Massachusetts residents across eastern counties use bankruptcy to stop creditor actions, prevent foreclosure, and regain control of their finances.
U.S. Bankruptcy Court – District of Massachusetts (Worcester Division)
Federal Circuit: First Circuit Court of Appeals
Court Location: Worcester
Where You File Depends on Where You Live
The Worcester Division handles cases from central Massachusetts. All cases are filed and administered through the Donohue Federal Building and U.S. Courthouse in Worcester.
Counties Served
Franklin County
Hampden County
Hampshire County
Worcester County
If you live in one of these counties, your case will be assigned to the Worcester Division. A bankruptcy attorney can help confirm where to file, prepare the required forms, and ensure compliance with all court procedures.
Recent Filing Statistics
The Worcester Division reports several hundred consumer bankruptcy cases each year. Chapter 7 filings make up the majority, while Chapter 13 repayment plans remain a common choice for individuals seeking to protect homes or vehicles. These filings reflect how residents throughout central Massachusetts use bankruptcy as a path toward financial recovery.
U.S. Bankruptcy Court – District of Massachusetts (Springfield Division)
Federal Circuit: First Circuit Court of Appeals
Court Location: Springfield
Where You File Depends on Where You Live
The Springfield Division serves western Massachusetts. Bankruptcy cases are filed and heard at the United States Courthouse in Springfield.
Counties Served
Berkshire County
Franklin County
Hampden County
Hampshire County
If you live in western Massachusetts, your case will be assigned to the Springfield Division. A bankruptcy attorney can confirm your filing location and help ensure all forms and schedules are properly completed.
Recent Filing Statistics
The Springfield Division has the lowest filing volume in the state but still handles hundreds of consumer bankruptcy cases annually. Chapter 7 remains the most frequent type of case, with Chapter 13 plans also used by families working to keep their homes and vehicles. These filings demonstrate how bankruptcy provides a critical financial safety net for residents throughout western Massachusetts.