If you’re struggling with debt and wondering what comes next, you’re not alone. Many individuals and families in Massachusetts face financial challenges that feel impossible to manage. For some, Chapter 7 bankruptcy offers a fresh start.

This guide was created to help you understand how Chapter 7 works in Massachusetts—from who qualifies and what the process involves, to what happens to your assets and what life can look like after your case is discharged. Filing for bankruptcy is a serious decision, and it’s essential to know your options and your rights before moving forward.

As a bankruptcy attorney serving individuals and families across Massachusetts, we’ve seen how the right information—and the proper legal support—can make a real difference. Our goal is to help you make informed choices with confidence and clarity.

In the sections below, we’ll cover:

  • How Chapter 7 bankruptcy compares to other forms of debt relief
  • What it takes to qualify under the Massachusetts means test.
  • What assets may be protected or sold
  • How we can help you avoid common pitfalls
  • What to expect after your debts are discharged

If you’re thinking about filing or simply exploring your options, this guide is a great place to start. You’ll learn how Chapter 7 bankruptcy works in Massachusetts and how a knowledgeable New Bedford attorney can help you protect what matters most.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals to eliminate certain types of debt and get a financial reset. It’s sometimes referred to as a “straight bankruptcy” or “liquidation bankruptcy” because it may involve selling off non-exempt assets to repay creditors. For many, it’s the quickest and most direct way to wipe out unsecured debt and begin rebuilding.

How Chapter 7 Differs from Chapter 13 and Other Options

Chapter 7 and Chapter 13 are both forms of consumer bankruptcy, but they work very differently. In a Chapter 7 case, your qualifying debts are typically discharged within a few months, and you are not required to repay them through a court-approved plan. Chapter 13, on the other hand, involves a repayment plan that lasts three to five years.

Here’s a quick comparison:

  • Chapter 7: Fast debt discharge (usually within 4–6 months), potential asset liquidation, strict eligibility requirements.
  • Chapter 13: Repayment plan based on income, better for those with steady income and assets they want to keep.

Other debt relief options may include debt settlement or consolidation, but these don’t offer the same legal protections as a bankruptcy filing.

Who Chapter 7 Bankruptcy Is Best Suited For

Chapter 7 bankruptcy is generally a good fit for individuals who:

  • Have mostly unsecured debts (like credit cards, medical bills, or personal loans)
  • Have limited income and few assets
  • Do not have the means to repay debts over time
  • Are facing creditor lawsuits, wage garnishments, or account freezes

If you’re unsure whether you qualify or if this type of bankruptcy is the best solution for your situation, a consultation with a bankruptcy attorney in Massachusetts can help you weigh your options. We’re here to walk you through the details and answer your questions clearly, every step of the way.

The MA Means Test: Qualifying for Chapter 7 Bankruptcy

Before you can file for Chapter 7 bankruptcy in Massachusetts, you’ll need to determine if you qualify based on your income and household size. This is where the means test comes in. It’s a formula used to assess whether your financial situation meets the threshold for a Chapter 7 case.

What Is the Means Test?

The means test was created to ensure that only individuals who truly cannot afford to repay their debts use Chapter 7. It compares your household income to the median income in Massachusetts for a household of your size. If your income falls below the median, you generally qualify.

If your income is above the median, you may still qualify depending on your expenses. The test looks at what you earn, what you spend on necessary living costs, and how much disposable income remains. If that amount is low enough, Chapter 7 may still be an option.

Income Thresholds in Massachusetts

Income limits are adjusted regularly, but here’s a general idea of how they work:

  • One-person household: $ 88,430
  • Two-person household: $108,534
  • Three-person household: $137, 635
  • Four-person household: $172,104

These numbers are based on current IRS and Census Bureau data. If your income is close to the cutoff, it’s essential to review your financials carefully with a Massachusetts bankruptcy lawyer.

Exceptions and Special Circumstances

Not every situation fits neatly into a formula. You may still qualify for Chapter 7 even if your income is technically over the limit. For example:

  • You recently lost your job or experienced a pay cut
  • You have significant medical expenses or childcare costs
  • You support elderly parents or adult dependents

The court may consider these factors when determining whether a Chapter 7 filing is appropriate.

Documentation Needed to Pass the Test

To complete the means test, you’ll need to gather documents that reflect your financial situation over the past six months, including:

  • Pay stubs or proof of income
  • Tax returns
  • Mortgage or rent statements
  • Utility bills and insurance costs
  • Records of child support or alimony

We can help you put everything together and determine whether you qualify. Filing under the wrong chapter—or skipping important documentation—can cause delays or even lead to your case being dismissed. That’s why we’re here: to make sure the process is handled correctly from the beginning.

Do I Need a Massachusetts Chapter 7 Bankruptcy Lawyer?

Filing for Chapter 7 bankruptcy is a significant financial decision. While it’s possible to file on your own, doing so without legal guidance can come with serious risks. A qualified bankruptcy attorney in Massachusetts can help you avoid mistakes, protect your assets, and make sure the process runs smoothly from start to finish.

The Benefits of Having Legal Help

Bankruptcy law involves a combination of federal rules, court procedures, and state-specific exemptions. When you work with an attorney, you gain a professional who understands how all the parts work together. We’ll make sure your paperwork is complete, accurate, and filed on time, giving you the strongest chance at a successful outcome.

Here’s how we help:

  • Determine whether Chapter 7 is the right fit for your situation
  • Calculate your eligibility under the means test
  • Identify which assets you can protect under the Massachusetts exemptions
  • Handle court filings and deadlines
  • Represent you in meetings with the bankruptcy trustee
  • Offer guidance and reassurance at every step

Common Pitfalls of Filing Without a Lawyer

When people file without legal help, they often underestimate how complex the process can be. Here are a few of the problems we see:

  • Failing the means test due to incorrect income calculations
  • Losing property that could have been protected
  • Having a case dismissed for missing documents or deadlines
  • Facing creditor objections without knowing how to respond

Even one small error can cost you time, money, or peace of mind. That’s why legal representation can make a meaningful difference.

How Logan A. Weinkauf, PC Supports You

We don’t just fill out forms. We help you make sense of the bigger picture and create a plan tailored to your financial goals. Whether you’re trying to stop collection calls, protect your home, or simply get a fresh start, we’re here to guide you with clarity and care. And when you call our office, you can expect honest answers, not pressure.

If you’re ready to take the next step, we can walk you through what to expect and help you decide if Chapter 7 bankruptcy is the right path for you.

Chapter 7 Bankruptcy: Liquidation of Assets

One of the key features of Chapter 7 bankruptcy is the potential for liquidation. That means certain assets may be sold to repay creditors. However, the idea of “losing everything” is a common myth. In most cases, people who file are able to keep most or all of their property thanks to state and federal exemptions.

What Liquidation Means Under Chapter 7

When you file for Chapter 7, you’re placing your eligible assets into the hands of a bankruptcy trustee. The trustee reviews your property and determines whether anything can be sold to help pay off your debts. This process is known as liquidation.

That said, most Chapter 7 cases are considered “no-asset” cases. This means exemptions fully protect the filer’s property, and nothing is sold.

The Role of the Bankruptcy Trustee

The trustee is a court-appointed individual who oversees your case. Their job is to:

  • Review your bankruptcy petition and financial disclosures
  • Identify any non-exempt assets
  • Sell non-exempt property (if any) and distribute the proceeds to creditors
  • Conduct a brief meeting with you (called the 341 meeting) to confirm your information

Trustees follow strict rules and don’t make arbitrary decisions. If your case is straightforward and your property is exempt, the trustee will likely close the case without any liquidation.

Which Assets May Be Sold

Most people are able to keep essentials such as:

  • Household goods
  • Clothing
  • Modest equity in a vehicle
  • Retirement accounts
  • Tools of the trade
  • A portion of home equity (depending on your situation)

Assets that might be subject to sale include:

  • Second vehicles
  • Valuable collections or luxury items
  • Vacation properties
  • Non-exempt cash or bank balances

That’s why it’s important to fully disclose your property and review your situation with a bankruptcy attorney in Massachusetts before filing.

How Exemptions Work in Massachusetts

Exemptions are legal protections that allow you to keep certain assets during bankruptcy. In Massachusetts, you have a choice between using state exemptions or the federal exemption system, but you can’t mix and match between the two.

For example, under Massachusetts state exemptions, you may be able to protect:

  • Up to $500,000 in home equity (if you file a Declaration of Homestead)
  • Personal property such as furniture, clothing, and appliances
  • Up to $7,500 in a motor vehicle (or more if you’re elderly or disabled)
  • Most retirement accounts and public benefits

Choosing the right exemption system can make a big difference in what you’re able to keep. We’ll help you evaluate both options and select the one that offers the strongest protection based on your assets and goals.

If you’re worried about losing property, we’ll walk you through what’s protected and how the process works. In most cases, liquidation is more limited than people expect, and relief comes much sooner.

How Do I Qualify for Chapter 7 Bankruptcy?

Qualifying for Chapter 7 bankruptcy in Massachusetts involves meeting specific criteria related to your income, residency, and past bankruptcy filings. Understanding these requirements can help you determine if Chapter 7 is the right path for your financial situation.

Residency and Filing Requirements

To file for Chapter 7 bankruptcy in Massachusetts, you must have lived in the state for at least 91 days before filing. If you haven’t met this requirement, you may need to wait until you do or consider filing in your previous state of residence.

Additionally, to use Massachusetts-specific exemptions to protect your property, you must have lived in the state for at least two years. If you haven’t met this two-year residency requirement, you may be required to use federal exemptions or those from your previous state, depending on the circumstances.

Financial Hardship Criteria

Chapter 7 bankruptcy is designed for individuals who cannot repay their debts. To determine eligibility, you’ll need to pass the “means test,” which compares your income to the median income for a household of your size in Massachusetts.

If your income is below the median, you typically qualify. If it’s above, you may still qualify after deducting certain allowable expenses. These expenses can include:

  • Mortgage or rent payments
  • Utility bills
  • Childcare costs
  • Medical expenses
  • Taxes
  • Insurance premiums

It’s essential to calculate your income and expenses to determine eligibility accurately. A bankruptcy attorney can assist you in this process.

Prior Bankruptcy Filings and Timelines

If you’ve filed for bankruptcy in the past, there are waiting periods before you can file again:

  • Chapter 7 after Chapter 7: You must wait eight years from the date of your previous Chapter 7 filing.
  • Chapter 7 after Chapter 13: You must wait six years from the date of your Chapter 13 filing, unless you paid all unsecured debts in full or at least 70% of them through your repayment plan.

Understanding these timelines is crucial to ensure your eligibility for a new bankruptcy filing.

If you’re uncertain about your eligibility for Chapter 7 bankruptcy, consulting with a bankruptcy attorney in Massachusetts can provide clarity and guidance tailored to your specific circumstances.

The Advantages of Filing for Bankruptcy

Filing for Chapter 7 bankruptcy in Massachusetts can offer tangible relief during a difficult financial time. While the decision to file shouldn’t be taken lightly, the benefits can be life-changing. Many individuals and families find that bankruptcy gives them a path forward when nothing else seems to work.

Discharge of Unsecured Debts

One of the biggest benefits of Chapter 7 is the discharge of unsecured debts. This means you are no longer legally required to pay certain obligations, including:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Some utility bills
  • Old lease balances

Once your case is successfully discharged, those debts are wiped out, giving you a clean financial slate.

Protection From Creditor Harassment

As soon as you file for Chapter 7, the automatic stay goes into effect. This court order puts an immediate stop to most collection actions, including:

  • Phone calls and letters from debt collectors
  • Wage garnishments
  • Lawsuits and court judgments
  • Foreclosure and repossession efforts (at least temporarily)

This protection can bring a sense of calm while your case is being reviewed, and it ensures you have space to regroup.

A Fresh Financial Start

The goal of Chapter 7 bankruptcy is to help honest debtors reset their finances. When debts are erased and collection actions stop, it becomes possible to focus on essentials—like rent, groceries, and family. Many clients find they’re able to rebuild their credit faster than expected after a discharge.

With fewer obligations, you can begin making smarter financial decisions, build an emergency fund, and move toward long-term stability.

Immediate Relief Through the Automatic Stay

The automatic stay begins the moment your case is filed. This legal protection temporarily freezes most creditor actions and gives you breathing room. If you’re dealing with lawsuits, car repossession, or threats of foreclosure, the stay can stop these in their tracks.

Although the stay doesn’t last forever, it gives us time to review your options and take action if certain debts or assets need additional protection. That alone can make a world of difference.

If you’re unsure whether Chapter 7 is right for you, we’re happy to talk through the pros and cons based on your specific situation. Many clients tell us their only regret was waiting too long to explore their options.

Complications in Your Chapter 7 Case

Chapter 7 bankruptcy can offer real relief, but that doesn’t mean every case is simple. Some situations call for extra care and legal experience to avoid costly mistakes. If your case involves complex financial issues, it’s especially important to get the proper legal support from the start.

Cannot Handle the Case Alone

Trying to handle a Chapter 7 case on your own might seem like a way to save money, but it often leads to bigger problems. Bankruptcy law includes strict procedures, deadlines, and rules about disclosures. Missing even one step can result in your case being delayed—or worse, dismissed entirely.

Below are some common complications that can arise.

Hidden Complexities

Some financial issues aren’t obvious at first but can create serious legal hurdles. For example:

  • A recent lawsuit or judgment against you
  • Cosigned debts or shared assets
  • A pending foreclosure or vehicle repossession
  • Large credit card purchases or cash advances shortly before filing
  • Debts that may not be discharged, like taxes, student loans, or fraud-related debts

These issues require careful analysis and clear documentation. Failing to disclose information or misunderstanding how these matters are treated in bankruptcy can jeopardize your case.

Risks of Filing Incorrectly or Incompletely

Mistakes in your paperwork can trigger a number of problems, including:

  • Loss of protected assets
  • Delays in the discharge process
  • Objections from creditors or the trustee
  • Accusations of fraud or misrepresentation

Even honest errors can raise red flags. Bankruptcy trustees and judges expect accuracy and transparency. That’s why having an attorney review your case is not just helpful—it’s smart.

What Happens If Your Case Is Dismissed

A dismissed bankruptcy case means your debts are not discharged. You lose the protection of the automatic stay, and creditors can resume collection efforts. Worse, it may be harder to refile in the near future, especially if the court believes the first case was filed improperly.

In some cases, a dismissal can also affect your ability to file under Chapter 7 again for several months or longer. That’s time you can’t afford to lose if you’re already facing lawsuits, garnishments, or foreclosure.

Every case is different, and complications don’t always mean you can’t move forward. It just means you need thoughtful planning and guidance from someone who understands what’s at stake. We’re here to help you avoid problems before they arise—and step in quickly if they do.

Contact a Massachusetts Bankruptcy Attorney Today

If you’re considering Chapter 7 bankruptcy, it’s important to understand your rights, your options, and the steps involved. You don’t have to figure it out alone. Working with an experienced bankruptcy attorney in Massachusetts can make the process smoother, safer, and less stressful.

Why Experience Matters

Bankruptcy law isn’t just paperwork. It’s about timing, legal strategy, and understanding how the system works—both federally and locally. An experienced attorney knows how to spot potential issues early and help you avoid common mistakes that could cost you time or money.

At Logan A. Weinkauf, P.C., we’ve helped individuals and families across Massachusetts take back control of their finances through Chapter 7. Whether your case is straightforward or complex, we’re ready to guide you through the process with care and clarity.

How We Can Help

When you work with our office, we’ll:

  • Review your finances and determine if Chapter 7 is right for you
  • Explain what to expect at every step of the process
  • Help you protect the property you’re entitled to keep
  • Make sure your case is handled properly from day one

Schedule a Free Consultation

If you’re ready to talk, we’re here to listen. Schedule a free consultation today to learn more about your options. We’ll walk you through what’s possible and what comes next so that you can move forward with confidence.

Your fresh start may be closer than you think. Let’s talk.