The new law, signed by the governor last week, and slated to take effect in early April, also allows debtors who use the Massachusetts bankruptcy exemptions to keep up to $2,500 in a savings or checking bank account when they file. This is an important advantage for debtors, because the current level is only $500.
What the lawmakers didn’t do, however, was create a true “wild-card” exemption under Mass. law, which would have allowed protection for any goods or investments a debtor holds at the time of a bankruptcy filing. Debtors who qualify to use the federal exemptions can exempt almost $12,000 in any type of property by using the federal “wild-card.”
This is not the time or place to quibble, however, as the new Massachusetts law will eventually provide a lot of real help to Mass. residents who need to file bankruptcy.
By Doug Beaton