If I claim bankruptcy in Massachusetts what property can I keep?

If you are filing a Chapter 7 bankruptcy in Massachusetts you must turn over many of your assets, and can only keep the property that is exempt from creditors.  This means you will need to understand the Massachusetts rules and figure out the current value and equity of the property you own.  Some of the exemptions (exempt property) includes the following:

• Homes with equity valued at up to $500k, 
• 401ks, 
• Social security benefits, 
• Veteran’s benefits, 
• Unemployment, 
• Worker’s compensation, 
• Pensions and  
• Certain items of personal property.

If you wish to keep your non-exempt assets instead of turning them over to the court as part of your bankruptcy proceeding, you may wish to consider filing a chapter 13 bankruptcy instead. This will allow you to keep all your possessions, but you will not be able to simply erase your debt- you will need to enter into a 3-5 year repayment plan.

To better understand if your property is exempt or if it must be turned over in a Massachusetts bankruptcy, consult with an experienced bankruptcy attorney as soon as possible.