Bankruptcy in Boston, MA
Mounting debt doesn’t just affect your wallet—it affects your focus, your sleep, and your peace of mind.
In a high-cost city like Boston, it doesn’t take much for expenses to outpace income. When you can’t see a way forward, it’s time to consider options that offer real relief.
Bankruptcy exists for these situations. It’s a legal process that can pause collections, stop foreclosures, and give you space to rebuild.
If you’re ready to stop the cycle and take back control, start by asking us for a referral to a Boston bankruptcy attorney. With the right guidance, a fresh start isn’t just possible—it’s within reach.
Types of Bankruptcy in Boston, Massachusetts
Bankruptcy exists for one reason—to give you a way out when debt becomes impossible to manage. If you’re living paycheck to paycheck or watching interest pile up faster than you can pay it down, filing may give you the legal breathing room you need to reset.
In Massachusetts, you’ll need to show that your financial situation makes it unreasonable—or impossible—to keep up. But even with a bankruptcy filing, not all debts go away. Child support, spousal support, most student loans, and some tax obligations typically remain.
Massachusetts residents can generally choose between Chapter 7, Chapter 13, or Chapter 11, depending on income level, assets, and the complexity of their finances.
If you live in the Boston area, your bankruptcy case will be handled by the U.S. Bankruptcy Court for the District of Massachusetts. Its location is at 5 Post Office Square, Suite 1150, Boston, MA 02109-3945, inside the John W. McCormack Post Office and Courthouse.
Chapter 7 Bankruptcy
For many people in Boston facing relentless debt, Chapter 7 bankruptcy can offer a clean break and a chance to move forward. It’s designed for those who simply don’t have the income to catch up or stay current on what they owe.
Filing under Chapter 7 may erase unsecured debts like credit cards, medical bills, and personal loans—but it’s not one-size-fits-all. Before filing, you’ll want to evaluate what assets you own, how much you owe, and what property you hope to protect.
This option is typically used by individuals who’ve experienced a serious financial shift, such as job loss, divorce, or a medical emergency. While Chapter 7 can clear many debts, it also requires a trade-off: some non-exempt property could be sold to repay creditors.
Fortunately, Massachusetts has strong exemption laws that may allow you to keep essentials like your home, vehicle, and retirement funds.
Eligibility for Chapter 7 is based on a means test, which measures your income against the state median. If you fall below the threshold, you may qualify. If your income is higher, further calculations are used to assess whether you’re eligible. Massachusetts median income limits for 2025 are:
- 1-person household: $81,040
- 2-person household: $105,425
- 3-person household: $133,692
- 4-person household: $167,173
- Add $9,900 for each additional person
Chapter 11 Bankruptcy
Chapter 11 is often the right move for Massachusetts business owners or individuals with significant assets who need time to reorganize, not liquidate. It’s a strategic option that allows you to restructure debt under court supervision while continuing to operate your business or maintain ownership of your property. Rather than forcing a sell-off, Chapter 11 gives you the breathing room to develop a repayment plan that fits your circumstances.
This chapter stands out for one key reason: control. You remain in charge of your assets while working with creditors to renegotiate payment terms, adjust interest rates, or extend deadlines. These plans are highly customized and can stretch over several months, or longer if needed.
Chapter 13 Bankruptcy
Chapter 13 is a good fit for Massachusetts residents who have steady income but need a manageable way to deal with debt. Instead of wiping the slate clean like Chapter 7, this approach helps you catch up over time. It also doesn’t put your home, car, or other important assets at risk.
Once you file, the court assigns a trustee to evaluate your financial picture and make sure your proposed repayment plan follows the law. You’ll commit to making monthly payments over three to five years. The amount you pay depends on what you earn, what you owe, and what you’re trying to protect.
The Bankruptcy Process in Boston, Massachusetts
If debt has become a long-term problem with no realistic path to pay it down, bankruptcy may be the most practical step forward. It’s not about failure—it’s about using the law to stop the damage, protect the essentials, and reset with a clear plan.
In Massachusetts, filing starts with documentation. You’ll need a full and accurate snapshot of your financial life: income, expenses, debts, assets—everything. The court uses this information to determine which chapter you qualify for and what protections apply. Any gaps or errors in your paperwork can delay your case or cause it to be dismissed entirely.
Massachusetts law provides its own set of bankruptcy exemptions, which help determine what you’re allowed to keep during the process. These rules are different from federal exemptions, and if you file here, you must use the state’s system. Here’s what you may be able to protect:
- Homestead: Up to $500,000 in equity in your primary residence if you’ve filed a homestead declaration. This doubles to $1 million for filers who are elderly or disabled.
- Motor Vehicle: Up to $7,500 in equity; or $15,000 if you’re elderly or disabled.
- Personal Property: Includes clothing, beds, bedding, heating units, and furniture (up to $15,000 total), books(up to $500), food (up to $600), and jewelry (up to $1,225).
- Wages: Protects 85% of unpaid wages, or 50 times the federal minimum wage, whichever is greater.
- Retirement Accounts: Most tax-deferred accounts, including 401(k)s and IRAs, are fully exempt.
- Public Benefits: Full protection for Social Security, unemployment, workers’ comp, veterans’ benefits, and other public assistance.
- Tools of the Trade: Up to $5,000 for equipment and tools needed for your work, plus another $5,000 in inventory or supplies.
- Wildcard Exemption: Allows you to apply up to $1,000, plus as much as $5,000 from unused categories, toward any asset you choose.
Work With an Experienced Boston, Massachusetts Lawyer
If debt is putting your future on hold, bankruptcy may offer the structure and legal protection you need to move forward. Whether you need to clear unsecured balances through Chapter 7 or reorganize your finances with Chapter 13, Massachusetts law gives you the tools to protect key assets while regaining control.
Now is the time to take action—before creditors escalate or your options narrow. A Boston bankruptcy attorney can guide you through the process, explain how the state’s exemptions apply to your case, and help you make informed decisions every step of the way. Your financial reset starts with a conversation.
Submit a request online or call us today at (866) 345-6784 to speak with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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