Filing Chapter 7 Bankruptcy in Massachusetts (2026)
Reviewed by DocDraft Legal Team · Massachusetts · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep depends on which exemption set you claim. Massachusetts is a choice state: you may elect the federal 11 U.S.C. 522(d) exemptions or the Massachusetts exemptions, but you must take one set in full and cannot mix them. Massachusetts is notable for its homestead, which protects an automatic $125,000 of equity in your principal residence and up to $500,000 if you record a Declaration of Homestead under Mass. Gen. Laws ch. 188. This page explains the Massachusetts homestead, the vehicle, wildcard, wage, and retirement figures, the means-test median income, and the single federal bankruptcy court where residents file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Massachusetts use state or federal bankruptcy exemptions?
Massachusetts is a choice state. A debtor filing in Massachusetts may elect either the federal 11 U.S.C. 522(d) exemptions or the Massachusetts state exemptions. You must choose one set in full and cannot combine the two, so most filers compare both lists and pick whichever protects more of their property overall.
Can I keep my house if I file Chapter 7 in Massachusetts?
Often yes. Under Mass. Gen. Laws ch. 188, an automatic homestead protects $125,000 of equity in your principal residence, and recording a Declaration of Homestead raises that protection to $500,000. If your home equity fits within the applicable amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Massachusetts?
Usually yes if your equity is modest. Under Mass. Gen. Laws ch. 235 section 34, Massachusetts exempts $7,500 of motor vehicle equity, or $15,000 if the vehicle is owned by an elderly or disabled debtor. If your car equity is at or below that figure, the vehicle is protected. Higher equity may be partly reachable.
What is the income limit to file Chapter 7 in Massachusetts?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Massachusetts are $88,202 for one earner, $112,708 for two, $139,411 for three, and $178,524 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Massachusetts's Federal-or-State Choice and the Chapter 188 Homestead up to $500,000
Massachusetts is a bankruptcy choice state rather than an opt-out state. A debtor filing here may elect either the federal 11 U.S.C. 522(d) exemption set or the Massachusetts exemptions, but must take one set entirely and cannot mix federal and state provisions. What makes Massachusetts distinctive is its homestead under Mass. Gen. Laws ch. 188 sections 1 through 4: every homeowner receives an automatic homestead protecting $125,000 of equity in a principal residence, and recording a written Declaration of Homestead raises that protection to $500,000, one of the more generous state homesteads in the country. On the state side, Massachusetts also exempts $7,500 of motor vehicle equity, rising to $15,000 for an elderly or disabled debtor (ch. 235 section 34), household goods and furnishings, and a wildcard of $1,000 plus any unused portion of certain exemptions (ch. 235 section 34). Wages are protected at 85 percent of gross earnings or 50 times the state minimum wage (ch. 246 section 28), and retirement accounts are exempt under ch. 235 section 34A. Massachusetts residents file in the U.S. Bankruptcy Court for the District of Massachusetts, a single statewide district with divisional offices in Boston, Worcester, and Springfield.
Relevant Laws
Massachusetts Homestead Exemption (Mass. Gen. Laws ch. 188)
Establishes the Massachusetts homestead: an automatic homestead of $125,000 of equity in a principal residence, rising to $500,000 when a written Declaration of Homestead is recorded. This is the exemption that lets many Massachusetts homeowners keep their house in Chapter 7.
Federal Exemption Choice and Opt-Out Rule (11 U.S.C. 522(b))
Section 522(b) lets each state either opt out of the federal exemptions or allow debtors to choose. Massachusetts has not opted out, so a debtor filing here may elect either the federal 522(d) list or the Massachusetts exemptions, but must take one set in full.
Massachusetts Vehicle, Household, and Wildcard Exemptions (Mass. Gen. Laws ch. 235 section 34)
Sets the Massachusetts personal-property exemptions, including $7,500 of motor vehicle equity ($15,000 if owned by an elderly or disabled debtor), household furniture and goods, and a wildcard of $1,000 plus any unused portion of certain exemptions.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(d) is the federal exemption set Massachusetts filers may elect, section 522(b) governs the state-versus-federal choice, and section 707(b) sets the means test measured against state median income.
Regional Variances
Massachusetts Chapter 7 Exemption Table
Homestead
Mass. Gen. Laws ch. 188: an automatic homestead protects $125,000 of equity in a principal residence, and recording a written Declaration of Homestead raises that protection to $500,000. This applies only if you claim the Massachusetts exemption set rather than the federal 522(d) set.
Motor vehicle
Mass. Gen. Laws ch. 235 section 34: $7,500 of motor vehicle equity, rising to $15,000 if the vehicle is owned by a debtor who is elderly or disabled. Equity above the applicable figure may be reachable by the trustee.
Wildcard
Mass. Gen. Laws ch. 235 section 34: $1,000 in any property plus any unused portion of certain personal-property exemptions. This wildcard lets a filer protect cash or other assets that the specific category exemptions do not cover.
Personal property
Mass. Gen. Laws ch. 235 section 34 exempts household furniture, beds, bedding, heating equipment, clothing, and other necessary household goods, along with provisions and stated dollar limits on items such as tools of trade and books.
Wages
Mass. Gen. Laws ch. 246 section 28: 85 percent of gross wages, or 50 times the state minimum wage per week, whichever is greater, is exempt from attachment. This limits how much of your earnings a creditor or the bankruptcy estate can reach.
Retirement
Mass. Gen. Laws ch. 235 section 34A exempts pensions and retirement accounts, including IRAs and similar plans, from creditor claims. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
Suggested Compliance Checklist
Confirm the current Massachusetts means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Massachusetts median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $88,202 for one, $112,708 for two, $139,411 for three, and $178,524 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Massachusetts and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose the federal or Massachusetts exemption set and value your assets
Before preparing your schedules days after startingDecide between the federal 11 U.S.C. 522(d) exemptions and the Massachusetts exemptions, including the ch. 188 homestead worth up to $500,000 with a recorded declaration. Value your home, vehicle, and personal property so you can match assets to whichever set protects more. You must choose one set in full.
Record a Declaration of Homestead if you want full home protection
Before filing days after startingIf you own your home and want the $500,000 homestead rather than the automatic $125,000, record a written Declaration of Homestead at the registry of deeds for your county under Mass. Gen. Laws ch. 188 before you file. An attorney can confirm the declaration is properly recorded.
Prepare and file your petition, then attend the 341 meeting
Filing day and after days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Massachusetts, which triggers the automatic stay. Then attend the 341 meeting of creditors and complete the required post-filing financial management course before your discharge is granted.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Massachusetts means-test median income | Check your household size against the U.S. Trustee Massachusetts median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $88,202 for one, $112,708 for two, $139,411 for three, and $178,524 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Massachusetts and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose the federal or Massachusetts exemption set and value your assets | Decide between the federal 11 U.S.C. 522(d) exemptions and the Massachusetts exemptions, including the ch. 188 homestead worth up to $500,000 with a recorded declaration. Value your home, vehicle, and personal property so you can match assets to whichever set protects more. You must choose one set in full. | - | Before preparing your schedules |
| Record a Declaration of Homestead if you want full home protection | If you own your home and want the $500,000 homestead rather than the automatic $125,000, record a written Declaration of Homestead at the registry of deeds for your county under Mass. Gen. Laws ch. 188 before you file. An attorney can confirm the declaration is properly recorded. | - | Before filing |
| Prepare and file your petition, then attend the 341 meeting | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Massachusetts, which triggers the automatic stay. Then attend the 341 meeting of creditors and complete the required post-filing financial management course before your discharge is granted. | - | Filing day and after |
Frequently Asked Questions
Under Mass. Gen. Laws ch. 188, every Massachusetts homeowner has an automatic homestead protecting $125,000 of equity in a principal residence. Recording a written Declaration of Homestead at the registry of deeds raises that protection to $500,000. If your home equity fits within the applicable amount, Chapter 7 generally lets you keep the house.
You must record a written Declaration of Homestead for your principal residence at the registry of deeds for the county where the property sits, under Mass. Gen. Laws ch. 188 sections 1 through 4. Without a recorded declaration you still have the automatic $125,000 homestead, but recording the declaration raises the protected equity to $500,000.
For most Massachusetts exemptions, spouses who both file can each claim the exemption, effectively doubling protection on jointly owned property. The homestead under Mass. Gen. Laws ch. 188 is generally treated as a single household protection on the residence rather than doubled. An attorney can help confirm how doubling applies to your specific assets.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Under Mass. Gen. Laws ch. 246 section 28, Massachusetts protects 85 percent of your gross wages, or 50 times the state minimum wage per week, whichever is greater. This wage exemption limits how much of your earnings a creditor or the bankruptcy estate can reach, and it is among the more protective wage rules in the country.
Other Massachusetts guides
Asset Protection Planning in Massachusetts (2026)
Dealing With Debt Collectors in Massachusetts (2026)
How to Break a Lease in Massachusetts Legally (2026)
How to Dispute a Bill in Massachusetts (2026)
How to File a Small Claims Lawsuit in Massachusetts (2026)
How to File for Divorce in Massachusetts (2026)
Ready to Draft Your Document?
Get AI-powered legal documents with attorney review included. Plans start at $39.99/mo.