Massachusetts Bankruptcy

Bankruptcy is understood as a financial safety net that may assist individuals and businesses in managing debts that include overdue utility bills, credit card balances, and personal loans. The process is intended to offer a fresh start through federal procedures that outline how debts may be discharged or repaid.

In Massachusetts, filers review both federal and state exemptions to determine what property they may protect. New residents who have not lived in the state for up to two years use the federal exemptions because the residency provisions in the Bankruptcy Code may limit access to state exemptions.

How to File Bankruptcy in Massachusetts

One of the most important steps before filing for bankruptcy in Massachusetts is to take a credit counseling course from an approved provider within the 180 days that lead up to the filing. After the course, gather your pay stubs for the past six months, bank and investment account statements, information on income and monthly expenses, tax returns, a full list of assets, and a list of all creditors.

When you prepare the petition at the federal courthouse, you must complete schedules that describe your financial situation and list all expenses. The filing fee may range from $313 to $338, based on the chapter you choose. If your household income falls below 150% of the federal poverty guidelines, you may submit Official Form 103B to request a fee waiver.

About 20 to 60 days after you file, you must attend the 341 meeting led by a trustee, where you will show identification and answer questions about your assets and debts. After this meeting, you must complete a post filing debtor education course before you may receive a discharge of your debts.

Massachusetts Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Understanding each chapter before filing for bankruptcy in Massachusetts helps you choose the path that fits your financial situation. Below are the most commonly filed chapters in the state:

Chapter 7 (Liquidation)

Filing a Chapter 7 bankruptcy may clear many unsecured debts in exchange for the sale of property that is not protected by exemptions. When property is sold, the trustee appointed by the court may use the proceeds to pay your creditors. It is worth noting that you cannot file this chapter if your income is above the median family income in Massachusetts.

Chapter 13 (Repayment Plan)

Chapter 13 bankruptcy allows you to keep your property while repaying debts over time through a court-approved plan. You may choose this option to prevent foreclosure on your home or protect property that is not fully exempt. You must submit a repayment plan showing how you will pay creditors and make regular payments to the trustee according to that plan.

Chapter 11 (Reorganization)

This bankruptcy type allows debts to be reorganized while business operations or property management continues. A plan is created to repay creditors over time, which must be approved by the court. This chapter is often used by businesses but may also apply to individuals with large or complex debts.

Step-by-Step Checklist for Massachusetts Filers

You must ensure to complete these steps while filing for bankruptcy in Massachusetts:

• Take a credit counseling course from an approved provider
• Gather financial documents
• Prepare petition and schedules
• Pay the filing fee or request a fee waiver
• Attend the 341 meeting
• Complete post-filing debtor education course

Massachusetts Bankruptcy Court & Record Access

In Massachusetts, bankruptcy cases are filed and heard in the United States Bankruptcy Court for the District of Massachusetts. The court has three locations:

Boston Division – It covers counties like Plymouth, Suffolk, Essex, Dukes, and Bristol. The main address is:

Worcester Division – This division covers counties like Franklin, Worcester, and Hampden, and is located at:

Donohue Federal Building

Springfield Division – It also serves the same western counties as the Worcester Division but specifically handles cases from Berkshire, Franklin, and Hampden counties. This division is located at:

Individuals may access case information and documents from home through the Public Access to Electronic Court Records (PACER) system. However, the system does not provide access to records related to indigent persons or bankruptcy trustees. Basic case information may also be requested by calling the court at (617) 748‑5300 during regular office hours.

To obtain case documents, interested parties may either request them in advance by phone or use the PACER terminal available at the public counter in the court’s office.