Ostrander Law Office - Western Massachusetts Debtor Exemptions

The Bankruptcy Code allows individual and family debtors to designate certain property as "exempt" from the claims of your creditors. To find out how bankruptcy exemptions can work for you in your particular situation, contact the Northampton debtor exemptions attorneys at Ostrander Law Office.

In theory at least, in a Chapter 7 case the trustee is required to sell off the debtor's assets and property and use the sale proceeds to pay off the claims of priority claimants and unsecured creditors. In practice, Chapter 7 debtors seldom have anything of value to give to the trustee - their property is either already collateral for the claims of a particular secured creditor, designated as exempt and therefore protected from the claims of any creditor, or of no significant value to anybody else.

In Massachusetts, debtors may choose from either the federal list of exemptions, or a different list developed by the state legislature for use by debtors in Massachusetts. The federal list is not especially generous, but might feature more flexibility than the Massachusetts exemption provisions, especially for debtors who have little to no equity in their residence.

The Massachusetts exemption schedule is not especially generous either, with one important difference for homeowners - Massachusetts debtors can exempt up to $500,000 of equity in a properly designated homestead. That means your equity in your home cannot be reached by the trustee or your creditors, unless it exceeds $500,000. Most homeowners with substantial equity in their residence choose to use the Massachusetts exemptions.

In Chapter 13, the trustee appointed does not take any action to liquidate your nonexempt assets, but you still designate exempt property. If you have valuable assets that cannot be exempted but you still want to keep, such as certain heirlooms or jewelry, you can add the value of that property to your Chapter 13 payment plan, and in effect buy the property back from your creditors over a three-to-five year period.

The ability to exempt home equity, equity in a car, pension or insurance benefits, and certain household possessions is an essential element of the bankruptcy objective of a fresh start for the debtor. For dependable advice about how exemptions can work to your maximum advantage in either Chapter 7 or Chapter 13, contact the western Massachusetts bankruptcy exemption lawyers at Ostrander Law Office.

Western Massachusetts bankruptcy exemptions attorneys at the Ostrander Law Office advise Chapter 7 and Chapter 13 debtors about how to maximize the benefit of state and federal bankruptcy exemptions. Northampton debtor relief and garnishment exemption attorneys David Ostrander and Denise Shear represent bankruptcy clients in Hampshire County, Franklin County, Hampden County, Berkshire County, and Worcester County, including Springfield, Pittsfield, Chicopee, Amherst, Holyoke, Easthampton, Greenfield, Westfield, North Adams, Deerfield, Great Barrington, South Hadley, and Longmeadow MA.