Massachusetts Bankruptcy & Debt Relief Guide
State-specific exemptions, filing fees, and local court information to help you understand your options in Massachusetts.
Chapter 7 vs. Chapter 13 in Massachusetts
Understanding the difference between these two paths is the first step in deciding which option fits your situation.
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| Process Type | Liquidation - most unsecured debts discharged | Reorganization - repay over 3-5 years |
| Timeline | 3-6 months to discharge | 3-5 year repayment plan |
| Income Requirement | Must pass the means test (below median income) | Must have regular income to fund a plan |
| Filing Fee in Massachusetts | $338 | $313 |
| Property | Non-exempt assets may be sold by trustee | Keep all property while repaying creditors |
| Best For | Lower income, limited assets, urgent discharge needed | Higher income, saving home from foreclosure, catching up on arrears |
Find Help by City in Massachusetts
Browse city-specific guides for local bankruptcy court locations, median income figures, and debt relief resources.
Boston
Worcester
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Frequently Asked Questions
To file for bankruptcy in Massachusetts, you'll need to file a petition with the U.S. Bankruptcy Court. Massachusetts has the following federal court districts that handle bankruptcy cases: District of Massachusetts. You'll file in the district where you've lived for the majority of the past 180 days. Before filing, you must complete a credit counseling course from an approved provider.
The homestead exemption in Massachusetts is $500,000. This is the amount of equity in your primary residence that is protected from creditors during bankruptcy. Massachusetts uses the choice exemption system.
The court filing fee for Chapter 7 bankruptcy in Massachusetts is $338, and the filing fee for Chapter 13 is $313. Attorney fees typically range from $1,000 to $3,500 depending on the complexity of your case and your location within the state. If you cannot afford the filing fee, you may request to pay in installments.
Chapter 7 is a liquidation bankruptcy that typically takes 3-6 months and discharges most unsecured debts. Chapter 13 is a reorganization plan where you repay debts over 3-5 years. In Massachusetts, you must pass the means test (income below $55,800 for a single filer or $122,400 for a family of four) to qualify for Chapter 7. If your income is above these thresholds, Chapter 13 may be your option.
To qualify for Chapter 7 in Massachusetts, your income must generally be below the state median. For a single filer, the median income is $55,800; for a family of four, it is $122,400. If your income is above these amounts, you may still qualify through a more detailed means test calculation that accounts for certain allowed expenses.
A Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date, and a Chapter 13 stays for 7 years. This applies in Massachusetts and all other states, as credit reporting is governed by federal law. Many people begin rebuilding their credit score within 1-2 years of discharge.
In many cases, yes. Massachusetts's homestead exemption protects up to $500,000 in equity in your primary residence. If your home equity is within this limit, you can keep your home in Chapter 7. In Chapter 13, you can keep your home while catching up on missed mortgage payments through your repayment plan.