The Massachusetts Answer in One Paragraph
Massachusetts filers choose between Chapter 7 (liquidation, 3-4 months, strong discharge rate) and Chapter 13 (3-5 year repayment plan, better for saving a home from foreclosure or for filers above the means test). Three Massachusetts-specific inputs drive the choice: (1) the Massachusetts means test median of $95,727 for a 1-person household, (2) the Massachusetts homestead exemption of $500,000 (declared) / $125,000 (auto), and (3) the local filing mix and outcome data below. Everything else on this page is elaboration on those three factors.
Quick Side-by-Side
Chapter 7 in Massachusetts
Chapter 13 in Massachusetts
Massachusetts Means Test Thresholds (April 2026)
Massachusetts's single-person median of $95,727 is well above the national average. A larger share of would-be filers here land above the means test threshold on Part 1, which pushes them into Part 2 expense calculations or away from Chapter 7 entirely.
| Household Size | Massachusetts Median Income |
|---|---|
| 1-person household | $95,700 |
| 2-person household | $124,400 |
| 3-person household | $145,500 |
| 4-person household | $169,400 |
| 5-person household | $183,800 |
| 6-person household | $198,200 |
For household sizes above 6, add $11,100 per additional member. Full details at the Massachusetts means test calculator. For a general discussion, see our means test overview.
Massachusetts Homestead Exemption and the Chapter Choice
Massachusetts's homestead exemption protects $500,000 (declared) / $125,000 (auto) of primary-residence equity under M.G.L. c. 188. If your home equity is below that amount, Chapter 7 can usually wipe out your unsecured debt without putting the home at risk. If your equity exceeds the exemption, Chapter 13 is typically the right tool to keep the home while cramming down or curing mortgage arrears over 3-5 years.
Massachusetts lets filers choose between state exemptions and the federal bankruptcy exemption scheme (11 U.S.C. Section 522(d)). Review the full exemption list at bankruptcyexemptionsbystate.com/massachusetts before assuming any specific asset is safe.
Homestead amount (Massachusetts): $500,000 (declared) / $125,000 (auto). Statute: M.G.L. c. 188.
Massachusetts's Chapter 7 vs Chapter 13 Filing Mix
Massachusetts follows the national pattern: 95.1% of its 1,356 consumer cases are Chapter 7, and 4.9% are Chapter 13. Most filers who qualify for Chapter 7 choose it, and Chapter 13 is reserved for filers who need to save a home from foreclosure or cannot pass the means test.
Why does filing mix matter? Attorney fee structures often favor Chapter 13 (paid through the plan rather than up-front), which can produce local-market bias toward Chapter 13 that is not driven by individual debtor facts. FJC data lets you see whether Massachusetts's mix matches the economics of the typical filer's situation.
Massachusetts Federal Court Data
Numbers below come from the Federal Judicial Center Integrated Database, covering 1,356 consumer bankruptcy cases filed in Massachusetts's federal bankruptcy courts.
| Chapter | Cases Filed | Discharge Rate (resolved) |
|---|---|---|
| Chapter 7 | 1,290 | 99.1% |
| Chapter 13 | 66 | 59.1% |
Outcomes in Massachusetts differ sharply between the chapters. Of resolved Chapter 7 cases in the FJC database, 99.1% end in discharge. Of resolved Chapter 13 cases, only 59.1% end in discharge; the remaining 40.9% are dismissed before the plan completes. If you are physically able to file either chapter, this gap is a reason to think hard before committing to a 3-5 year Chapter 13 plan in Massachusetts.
Which Chapter Fits Which Massachusetts Filer?
- If your income is below the Massachusetts median ($95,727, 1-person) and you own little non-exempt property: Chapter 7 is almost certainly the right choice. Fast, cheap, and the highest discharge rate in consumer bankruptcy.
- If you are behind on your mortgage or car loan and want to keep the collateral: Chapter 13 lets you cure arrears over 36 to 60 months while the automatic stay blocks foreclosure and repossession.
- If you have high home equity and Massachusetts caps the homestead exemption: run the numbers on Chapter 13 cramdown, lien stripping (for wholly underwater junior liens), and the federal BAPCPA homestead cap before assuming Chapter 7 is safe.
- If you have filed before within the lookback windows: use the 1328(f) discharge screener first -- a prior Chapter 7 discharge bars another Chapter 7 for 8 years, and a prior Chapter 13 discharge bars another Chapter 13 for 2 years.
Rule of thumb for Massachusetts: if you qualify for Chapter 7 on the means test AND your home equity is within the $500,000 (declared) / $125,000 (auto) homestead, Chapter 7 is almost always the right choice. Chapter 13 is the right answer when specific facts (arrears, non-exempt equity, prior Chapter 7 within 8 years) rule Chapter 7 out.
Frequently Asked Questions
Is Chapter 7 or Chapter 13 better in Massachusetts?
For most Massachusetts filers who pass the means test, Chapter 7 is faster, cheaper, and succeeds more often. Chapter 13 is the right choice if you need to save a home from foreclosure, cure arrears, catch up on priority taxes, or cannot qualify for Chapter 7.
What is the Chapter 7 income limit in Massachusetts?
There is no hard dollar limit. The means test compares your 6-month average income (annualized) to the Massachusetts median for your household size. One person: $95,727. Four person: $169,400. Above-median filers can still qualify by running Part 2 expense deductions.
Can I use federal bankruptcy exemptions in Massachusetts?
Yes. Massachusetts is an opt-in state -- filers may choose federal exemptions under 11 U.S.C. Section 522(d) instead of state exemptions. Compare both schedules before filing; federal can offer a larger wildcard while state may offer a larger homestead.
How much home equity is protected in Massachusetts bankruptcy?
Massachusetts's homestead exemption protects $500,000 (declared) / $125,000 (auto) under M.G.L. c. 188. Federal BAPCPA limits (11 U.S.C. Section 522(p)) can cap this at approximately $214,000 for a residence acquired within 1,215 days of filing.
How long does bankruptcy take in Massachusetts?
Chapter 7 takes 3 to 4 months from filing to discharge in Massachusetts federal bankruptcy court. Chapter 13 takes 3 years (below-median) or 5 years (above-median) of monthly plan payments before discharge.
Can I switch from Chapter 13 to Chapter 7 in Massachusetts?
Yes. Under 11 U.S.C. Section 1307(a), a Chapter 13 debtor in Massachusetts generally has the right to convert to Chapter 7 at any time, as long as the case was not previously converted from Chapter 7. You must still pass the means test at the time of conversion.
Related Massachusetts Resources
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Last updated: 2026-04-18. Not legal advice. Statutory homestead and median-income figures are reproduced from public sources and may lag statutory amendments -- verify against current state statute before relying.
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