What Are the Massachusetts Bankruptcy Exemptions?

What Are the Massachusetts Bankruptcy Exemptions and Why Are They Important in a Chapter 7 Bankruptcy? 

Bankruptcy exemptions are laws that help protect your property when you file for Chapter 7 bankruptcy. They allow you to keep certain essential items—like your home, car, clothing, and household goods—instead of having them sold to pay off your debts.

There’s a common myth that filing bankruptcy means losing everything you own. In reality, most Chapter 7 filers keep all or most of their property because it's protected by exemptions. While the bankruptcy trustee can sell non-exempt property to pay creditors, exempt property is off-limits.

That’s why understanding how exemptions work—and which ones apply in Massachusetts—is such an important part of the bankruptcy process.

Does Massachusetts Allow Filers To Use Federal Bankruptcy Exemptions?

Massachusetts law allows residents who've lived in the state for at least two years to choose between federal bankruptcy exemptions and state exemptions to protect their property during bankruptcy. If you've lived in Massachusetts for less than two years, you probably have to use the federal exemptions.

By comparing the two sets of exemptions, you can figure out which one offers the most protection based on what you own. In many cases, both options will cover the basics. But depending on your situation, one set might do a better job of protecting specific property—like home equity, a vehicle, or personal items.

What Are the Massachusetts Bankruptcy Exemptions?

Unless otherwise noted, Massachusetts law allows married couples who are filing jointly to double the value of the exemption amounts available to them. There are two notable exceptions to this doubling benefit.

1. You can't double your exemption value amount if only one spouse owns the property in question. Property must be co-owned to benefit from value doubling.

2. You can't double the homestead exemption, as explained below.

As you evaluate the exemption values listed in each section of this guide, keep the doubling rule in mind if you're married and filing bankruptcy jointly.

Real Property: The Massachusetts Homestead Exemption

Whether you're a single filer or are married and filing jointly, you can exempt up to $500,000 of the equity value of your principal residence if you file a Declaration of Homestead.

If you don’t file a Declaration of Homestead, you can exempt up to $125,000 in equity.

Massachusetts is unique in that, unlike most states, it doesn't generally allow married couples who are filing jointly to double the value of their homestead exemption. However, the state exemption is so much more generous than the federal homestead exemption ($31,575 in equity for a single filer) that the absence of the doubling rule doesn’t affect most low-income filers.

Note that if you're disabled or are an older adult, you may be eligible to exempt $500,000 in equity for your principal residence, whether or not you file a Declaration of Homestead. You should be eligible if you're physically disabled, mentally impaired, or are at least 62 years of age. If you're married, filing jointly, co-own your residence, and you and your spouse are older than 62 years of age, you can exempt $1 million in home equity.

Personal Property Exemptions

Massachusetts personal property exemptions are truly unique. Note that personal property values are usually calculated using yard sale pricing.

Filers can exempt the full value of the following assets:

• Military uniforms and arms

• One pew in a house of worship

• One sewing machine

• One heating unit

• Beds and clothing for the filer and resident family members

• Cemetery rights, including burial plots and tombs

• Livestock, including 2 cows, 2 swine, 12 sheep, and 4 tons of hay

Filers can also exempt:

• Books up to $500

• Food provisions up to $600

• Household furniture up to $15,000

• Jewelry up to $1,225

• Shares in a cooperative up to 100

• Tools of the trade up to $5,000 in tools, implements, and fixtures necessary for a profession; $5,000 in stock-in-trade; and $1,500 in business-related fishing gear

Additionally, filers may exempt up to $7,500 in equity for a primary vehicle used for personal transportation purposes. If the vehicle is either owned or used by a person with disabilities or an adult over the age of 60, the exemption amount increases to $15,000.

Money Benefits

Unless otherwise noted, filers are also permitted to exempt the full value of the following monetary-based assets:

• Alimony or spousal support

• Annuity contracts payable to the insured’s spouse or dependent

• Child support

• Disability benefits up to $400 per week

• Displacement benefits, including moving expenses if you must move due to eminent domain

• Fraternal Benefit Society benefits

• Healthcare provider self-insurance funds

• Insurance policies

• Pensions, excluding benefits subject to claims under orders of support

• Public assistance

• Rent for a primary residence (not to exceed $2,500 per month)

• Retirement benefits, excluding benefits subject to claims under orders of support

• Social Security benefits

• Unemployment compensation

• Utilities up to $500 per month

• Veterans’ benefits

• Workers’ compensation

Other Massachusetts Exemptions

If you're a member of a business partnership, know that specific partnership property is exempt under Massachusetts law.

Wildcard Exemption

Finally, Massachusetts allows all filers to benefit from a $1,000 wildcard exemption. This exemption allows filers to safeguard property that's otherwise considered non-exempt because it exceeds its exemption limit or it doesn't fall under an exemption. The

Additionally, if you don’t use all of the exemption values allowed by the exemptions for motor vehicles, household furniture, and/or tools of the trade, you can use up to $5,000 of the remaining values as wildcard exemption amounts.

Federal Exemptions vs. Massachusetts Exemptions

Massachusetts gives you the option to choose between state exemptions and federal bankruptcy exemptions when filing for Chapter 7 bankruptcy (as long as you’ve lived in the state for at least two years). If the Massachusetts exemptions don’t protect all of your property, it may be worth comparing them to the federal exemptions to see which set gives you better coverage.

Federal bankruptcy exemptions are updated every three years. The amounts listed below are current as of April 1, 2025.

Federal Exemptions With Dollar Limits

These assets are protected up to a certain value:

• Motor vehicle equity: Up to $5,025

• IRAs and Roth IRAs: Up to $1,711,975 total

• Jewelry: Up to $2,125

• Life insurance with cash or loan value: Up to $16,850

• Personal injury compensation: Up to $31,575 (excluding amounts for pain and suffering or financial losses)

• Personal property like furniture, appliances, books, clothing, animals, and musical instruments: Up to $800 per item, with a total cap of $16,850

• Tools of the trade: Up to $3,175

If you’re married and filing jointly, the exemption amounts are generally doubled. This doubling applies to most exemptions, which can significantly increase your ability to protect property.

Federal Homestead and Wildcard Exemptions

The federal homestead exemption is one of the most valuable protections available. It allows a single filer to protect up to $31,575 in equity in their home or other qualifying real estate. Married couples filing jointly can protect up to $63,150

If you don’t own a home, the wildcard exemption lets you protect $1,675 in any property, plus up to $15,800 of any unused portion of the homestead exemption. This can be especially helpful for renters or people with valuable personal property that wouldn’t otherwise be protected.

Fully Protected Property Under Federal Law

The following benefits and assets are protected in full, regardless of value:

• Alimony or spousal support

• Child support

• Crime victim compensation

• Disability, illness, or unemployment benefits

• Health aids (prescribed medical equipment)

• Life insurance proceeds if you depended on the deceased for support

• Lost earnings payments (such as from a personal injury claim)

• Public assistance (SNAP, TANF, etc.)

• Social Security benefits

• Tax-exempt retirement accounts (401(k)s, 403(b)s, defined benefit plans, SEP and SIMPLE IRAs, etc.)

• Unemployment compensation

• Veterans’ benefits

• Unmatured life insurance policies (excluding credit insurance)

• Wrongful death compensation for the loss of someone you depended on financially

Filing Chapter 7 Bankruptcy? 

If you’re still unsure about whether you’ll be able to safeguard more property by claiming federal exemptions or Massachusetts bankruptcy exemptions, that’s okay. The Chapter 7 bankruptcy process can be complex. Thankfully, most Massachusetts law firms offer free consultations with their bankruptcy attorneys. Upsolve can connect you with a qualified bankruptcy lawyer in Massachusetts.

Taking advantage of this no-cost opportunity will allow you to ask questions and get a better sense of your debt relief options. For example, you may learn that filing for Chapter 13 bankruptcy is a better option for your situation. If, after you schedule a free consultation, you determine that you can’t afford to maintain an attorney-client relationship with the firm of your choice, Upsolve may be able to help you file a Chapter 7 bankruptcy case for free.