Massachusetts has some antiquated exemptions ($700 for a car!). These exemptions allow people to keep certain property when they are in debt. The Massachusetts legislature this week passed a long-awaited update. The bill now awaits the governor's signature. These changes will affect many people but, off the top of my head, two groups will most immediately benefit:
(1) People who have home equity and other property (such as paid-off cars) who need to file for bankruptcy.
(2) And people who own a car, are subject to debt judgments, and do not want their car to be seized by creditors.
Congrats to NACA and NCLC! They worked hard to lobby for these changes.
The full list of the new Massachusetts exemptions in the bill are here:
|Money for utilities||$75||$500|
|Stock in trade||$500||$5000|
|Provisions for family||$300||$600|
|One computer & one TV||none||no stated dollar limit|
|Cash or savings (execution)||$125||$2500 on any day|
|Wages (execution)||$125||greater of 85% of gross wages or 50 times min. wage per week|
|Automobile||$700||$7500 wholesale, $15000 for disabled or elderly|
|Personal property||none||$1000 to $6000|
|Wages (trustee process)||$125||greater of 85% of gross wages or 50 times min. wage per week|
|Bank account (trustee process)||$125||$2500|