Historically, state bankruptcy law supplied the property exemptions accessible to those seeking bankruptcy protection. Even so, the personal bankruptcy code now enables states to choose between the federal exemptions offered inside the bankruptcy code or the exemptions offered in state law. In Massachusetts you can choose between using the Federal Bankruptcy Exemptions or the Massachusetts state exemptions. Speaking with a qualified Massachusetts bankruptcy lawyer can help guide you towards the best option for your situation.

Common Bankruptcy Exemptions

A few typical kinds of property that are exempt from personal bankruptcy proceedings include:

Retirement Savings. The bulk of your retirement savings are protected by the personal bankruptcy code including pensions, stock bonus plans, Individual Retirement Accounts (IRAS), 401ks and other employer sponsored retirement plans.

Your Property. This is known as the homestead protection. Federal and state exemption laws let you protect your house from creditors in bankruptcy up with a certain dollar amount of money.

Your Automobile. Personal bankruptcy law recognizes that you have to have a car or truck in order to maintain a job and meet your monetary obligations. For that reason, a bankruptcy exemption exists for your car. The exemption does not permit you to spend money to drive a costly car while not repaying your monetary obligations. The exemption is limited to a specific dollar amount.

Home Products. Bankruptcy law sets an exemption amount for all of your home goods and a maximum amount of money per individual item. Usually, a personal bankruptcy trustee recognizes that there is little value in utilised household products and these items aren’t applied to satisfy debts even if they are cumulatively worth more than the greatest amount. Household goods can include things like pots and pans, bedding and decorative objects.

Personalized Items. Some particular things such as reasonably essential clothing are exempt. Jewelry, up with a specified amount, may possibly also be exempt.

Awards in personal injury cases are typically exempt from bankruptcy proceedings.

Tools of the trade are exempt up to certain dollar amounts established by law. For example, a professional photographer might be able to keep expensive cameras and processing equipment that an amateur photographer would need to sell to be able to satisfy his or her debts.

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