Protect Your Property with Exemptions
You are entitled protect some of your property with exemptions available under either State or Federal law. An exemption means that the property cannot be taken to satisfy your debts. It is important to maximize the use of your exemptions. NOTE: In order to use State exemptions you must have lived in the state for 2 years.
Some of the current Federal exemptions include:
- $21,625 in equity in your home;
- $3,450 in equity in your car;
- $1,450 worth of personal jewelry;
- $2,175 in things you need for your job (tools, books, etc.);
- $550 per item in any household goods up to a total of $11,525;
- Your right to receive certain public or retirement benefits;
- $1,150 in any property, plus up to $10,825 of the unused exemption in your home;
The amounts of the exemptions are doubled when a married couple files together.
Some of the current Exemptions under Massachusetts Law include:
- Homestead - $500,000
- Wearing Apparel
- Household Furniture - $3,000
- Tools of Trade - $500
- "Provisions" - $300
- Cash - $125
- Automobile - $700
Limits on the State Homestead Exemption
The Massachusetts Homestead Exemption is limited to $125,000 if:
- The Property was acquired within 1215 days (about 3 1/3 years)
- The Debtor has been convicted of a felony
- There are debts from Securities Law violations
- There are debts from conduct causing serious physical injury or death
Also, the Massachusetts Homestead Exemption may be reduced by the value of any property disposed of by fraudulent conveyance within 10 years of bankruptcy filing, such as by placing the property in trust to avpid creditors.
As the relief provided by a bankruptcy is a tool for you to use to get out of an unmanageable debt situation and provide yourself with a fresh start to move forward with your life, it is important to use this tool properly to maximize its benefits for you.
Bankruptcy is a complicated and technical area of law: let me help you have a successful case and maximize the benefit of your exemptions. Set up a no obligation appointment to go over how you can get the most benefit from your exemptions!
