Geller Benjamin, LLP

Bankruptcy Exemptions in Boston

When you file an individual bankruptcy case under Chapter 7 or Chapter 13, you are permitted to retain your primary home and personal property with certain exceptions. Such assets or property you keep are referred to as exempt, and a creditor with a judgment against an individual cannot take or seize it to pay off the debt.

The value of the property you may keep in your chapter 7 bankruptcy or chapter 13 bankruptcy is determined by the exemptions you choose use. You may choose to use Federal bankruptcy exemptions or state bankruptcy exemptions. There are advantages to each, and the selection should be made based on individual needs. A bankruptcy attorney could help you decide which is right for you. For help with bankruptcy exemptions in Boston, reach out to us today.

Federal v. Massachusetts Exemptions & the Homestead Exemption

The Massachusetts bankruptcy exemption for your home or the “homestead exemption” is much larger than the Federal bankruptcy homestead exemption. The “homestead exemption” permits you to protect the equity in your home from creditors. This only protects your interest in a primary residence and does not protect vacation homes or investment properties. If your primary residence is also a multi-unit dwelling, the exemption covers up to a four-unit dwelling. You must live in the home to claim this exemption.

If you file a homestead exemption form in your County’s Registry of Deeds, you may exempt up to $500,000 in equity. Otherwise, the exemption only covers the first $125,000 in equity. The Federal exemption only covers the first $27,900 in equity.

Common State Bankruptcy Exemptions

The following is a brief outline of some of the major and most commonly used Bankruptcy Exemptions for personal property or assets:

  • $7,500 – Motor Vehicle
  • $1,225 – Jewelry
  • $500 – Books
  • $600 – Food Provisions
  • $15,000 – Household Furniture
  • $5,000 – Tools of the Trade
  • $5,000 – Stock-in-Trade
  • $1,500 – Business-Related Fishing Gear
  • $1,000 – Wildcard Exemption

A seasoned Boston attorney could help a family decide if these state exemptions work for their unique bankruptcy case.

What About Federal Bankruptcy Exemptions?

The following is a brief outline of some of the major Federal Bankruptcy Exemptions for personal property or assets:

  • $4,450 – Motor Vehicle
  • $1,875 – Jewelry
  • $14,875 – Household Goods (furnishings, appliances, clothes, books, animals, crops, musical instruments). No individual item may exceed $700 in value.
  • $2,800 – Tools of the Trade (including implements and books).
  • $14,875 – Life Insurance Policy (loan value).
  • $27,900 – Personal Injury or Medical Malpractice awards with exceptions.
  • $1,283,025 – IRAs and Roth IRAs – Individual Retirement Accounts
  • Unlimited – Retirement Accounts (except IRAs) that are exempt from taxation.
  • Wildcard Exemption –
    • $1,475 plus $13,950 of any unused portion of your homestead exemption
    • The wildcard exemption may be applied to any property you own, and maybe used to avoid repaying the non-exempt equity in the property listed above.

There is no need to dip into savings. Being proactive with bankruptcy may protect your personal assets such as your home, car, and retirement accounts from your creditors. An experienced lawyer in Boston could help make these exemptions happen.

Speak With an Attorney about Bankruptcy Exemptions in Boston

If you are considering filing bankruptcy, please contact Geller Benjamin, LLP to discuss bankruptcy exemptions in Boston. Our team can listen to your goals and work hard to address your concerns.

DEBT RELIEF AGENCY – GELLER BENJAMIN, LLP IS A FEDERALLY RECOGNIZED DEBT RELIEF AGENCY THAT OFFERS LEGAL REPRESENTATION UNDER THE UNITED STATES BANKRUPTCY CODE.
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Our Team

Meet Our Staff

james-1-min
James Benjamin, Esq.
Mr. Benjamin has practiced law since 2011. Previously, Mr. Benjamin was the principal attorney at the Law Offices of James Benjamin for many years. Before starting his own practice, he was an associate attorney at the Law Offices of Jennifer... Read More   Arrow
Jacob Geller
Jacob D. Geller, Esq.
Jacob D. Geller is a Partner at Geller Benjamin, LLP. Prior to becoming a partner, Mr. Geller was the principal attorney at Law Offices of Jacob D. Geller, LLC for over 10 years. Mr. Geller began his career in immigration... Read More   Arrow
Gabrielle Patick, Esq.
Gabrielle R. Patick, Esq.
Gabrielle R. Patick is an Associate at Geller Benjamin, LLP.  Prior to joining Geller Benjamin, Ms. Patick began her career in immigration, working primarily with asylum applicants and special immigrant juveniles. Ms. Patick also has experience in assisting clients with... Read More   Arrow
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Jacob Geller
Gabrielle Patick, Esq.

Geller Benjamin LLP

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