What Can I Keep If I File Bankruptcy?

If you are looking to file bankruptcy in the state- Personal Property: Motor vehicle up to $700;
of Massachusetts, there are different types offurniture up to $3,000; clothing needed; beds and
bankruptcy to consider.bedding; heating unit; books up to $200 total; cash
- Chapter 7: referred to as liquidation; requires aup to $200 per month for rent, in lieu of
debtor to give up property which exceeds certainhomestead; cash for fuel, heat, water, or
limits called exemptions so it can be sold to payelectricity up to $75 per month; bank deposits to
creditors$125; cash for food or food to $300; sewing
- Chapter 11: referred to as reorganization; mainlymachine to $200; burial plots and tombs; church
for businesses or individuals very large amountspew; 2 cows, 2 swine, 12 sheep, and 4 tons of
of debthay. Co-op shares up to $100, bank, credit union,
- Chapter 12: reserved for families that areor trust company deposits up to $500 total.
farmers- Wages: Earned but unpaid wages up to $125 per
- Chapter 13: referred to as debt adjustment;week.
requires a debtor to file a plan to pay debts orAny property you have that meets the criteria
parts of debts from current income; exemptionsset forth by the state cannot be taken from you.
also applyYour bankruptcy lawyer can help you determine
Exemptions Allow You to Keep Your Propertyexactly what you can keep and what you cannot,
Exemptions are allowed in Chapter 7 and 13as well as which chapter you should file for. The
bankruptcies. These exemptions are defined byproperty that you own and the amount of debt
the state in which you are filing and disallow yourthat you have is used to determine which chapter
applicable property from being sold to pay yourfiling is for you.
debts. Some of the more important exemptionsIf you are considering filing for bankruptcy then
as defined by the state of Massachusetts are asyou should be aware of how it is going to affect
follows:you and knowing what property you can keep is
- Homestead: $500,000 in property you occupy oran important part of that information.
intend to occupy.