If you are feeling overwhelmed by debt, the weight of financial stress can feel like a shadow that follows you everywhere. I know what it is like for residents in Plymouth and throughout southeastern Massachusetts who struggle with the fear of losing their homes or the exhaustion of endless collection calls. Many people want to take action but do not know where to start or what the law requires.

If you have questions about how the bankruptcy process works and whether it could be the right solution for you, I am here to provide the answers. Filing for bankruptcy is a legal tool designed to give you a fresh start, but it comes with specific procedural hurdles. One of the most important of these is the credit counseling requirement. You must complete this step before you can even file your paperwork at the courthouse.

What Is the Mandatory Credit Counseling Requirement in Massachusetts?

Before you can file for Chapter 7 or Chapter 13 bankruptcy in Massachusetts, federal law requires you to complete a credit counseling session. The crediting counseling requirement is non-negotiable for most filers. You must complete this briefing within the 180 days immediately before your filing date (11 U.S.C. § 109(h)). If you fail to do this, the court will likely dismiss your case, which could delay your relief and lead to further financial damage.

The purpose of your credit counseling session is to ensure that you have explored all available options before committing to bankruptcy. During the counseling, a professional will review your income, expenses, and debt. They will also help you create a personalized budget and determine if a debt management plan is a viable alternative to filing.

You must receive credit counseling from an agency approved by the U.S. Trustee Program for the District of Massachusetts (https://www.justice.gov/ust/credit-counseling-by-state/Massachusetts). Your counseling sessions can be completed in person, over the phone, or online. Most sessions take about 60 to 90 minutes. Once finished, the agency will issue a certificate of completion that I will file with your bankruptcy petition.

Can the Means Test Help Me Qualify for Chapter 7 or Chapter 13?

Once the credit counseling is complete, we must determine which type of bankruptcy fits your situation. In Massachusetts, your eligibility for Chapter 7 is largely determined by the means test. This test compares your average monthly income from the last six months to the median income for a household of your size in Massachusetts (https://www.justice.gov/ust/means-testing).

If your income is below the state median, you generally qualify for Chapter 7. For cases filed in early 2026, the median income for a one-person household in Massachusetts is approximately $83,430 (https://www.justice.gov/ust/means-testing). If your income exceeds this limit, we perform a second calculation. We will look at your necessary monthly expenses, such as rent, food, and utilities. We do this to see if you have enough disposable income to pay back some of your debt through a Chapter 13 plan.

Chapter 13 is often a better choice if you are behind on a mortgage but want to keep your home. It allows you to catch up on missed payments over a three to five-year period while being protected by the automatic stay (https://www.mab.uscourts.gov/faqs-public).

How Can Exemptions Help Protect My Assets?

A common fear I hear from clients in Plymouth is that they will lose everything they own if they file for bankruptcy. This is a misconception. Massachusetts law provides “exemptions” that allow you to protect specific property from being sold to pay off creditors.

The Massachusetts Homestead Act

For most homeowners, the most valuable exemption is the Homestead Act. This law protects the equity in your primary residence. In Massachusetts, you receive an automatic homestead protection of up to $125,000 (M.G.L. c. 188, § 4).

But if you file a formal Declaration of Homestead with the Registry of Deeds before filing for bankruptcy, that protection increases significantly to $1,000,000 (M.G.L. c. 188, § 3). For elderly or disabled residents, this protection can be even higher if both spouses qualify (M.G.L. c. 188, § 2). Filing a homestead exemption is a critical step for anyone in the Plymouth area looking to safeguard their family home.

Personal Property and Other Exemptions

In addition to your home, Massachusetts state laws protect other essentials (M.G.L. c. 235, § 34):

  • Motor Vehicles: You can protect up to $7,500 in equity in a car, or $15,000 if you are elderly or disabled.
  • Household Furniture: Up to $15,000 in value for furniture and appliances.
  • Tools of Trade: Up to $5,000 in tools or equipment necessary for your work.
  • Wages: A large portion of your earned but unpaid wages is also protected from creditors.

What Is the Debtor Education Requirement After Filing?

Completing your initial credit counseling is not the final educational step. After your case is filed but before you can receive a discharge of your debts, you must complete a second course. This is called “Debtor Education” or “Financial Management” (11 U.S.C. § 727(a)(11)).

This second course focuses on teaching you how to manage your finances moving forward. It helps you maintain the stability bankruptcy provides. Like the first course, this must be taken from an approved provider. If you do not file the certificate of completion for this course within the court’s strict deadlines, your case could be closed without a discharge. This means you would still be legally responsible for your debts. I work hard to help my clients avoid this outcome.

Call Our Law Firm to Take the Next Step Toward Financial Freedom

The path to financial recovery starts with a single decision. I have been focusing on helping my clients navigate through bankruptcy and other financial issues since 2002. I founded Benner Law to exclusively represent people who need to get their finances back on track. I proudly serve clients in Plymouth and throughout southeastern Massachusetts. My goal is to sit down with you, review your financial situation, and help you find a solution that works for you.

If you are struggling financially, I encourage you to contact me at (774) 228-7338. In a free strategy session, I will review your income, debts, and assets to determine how the Massachusetts bankruptcy laws can best serve your needs. You do not have to face this challenging time alone. Contact Benner Law today so I can learn more about your situation and help you achieve the stability you deserve.