Massachusetts: Credit & Bankruptcy

Most states let a judgment creditor take a quarter of a paycheck. Massachusetts does not. Its wage rule is written the other way around, as a floor that stays with the worker. It is one of the strongest in the country.

That does not make a Massachusetts judgment harmless. Bank accounts, cars, and homes sit under a different set of rules. And the state's courts have their own paperwork rules for consumer debt suits that many collectors get wrong.

Your official Massachusetts resources

These are the state-level starting points most Massachusetts residents dealing with debt problems need:

• Massachusetts law about debt collection — the Trial Court Law Libraries' research guide, with the statutes, regulations, court rules, and cases in one place, and a chat service staffed by law librarians.
• Attorney General — file a consumer complaint and the AG's fair debt collection guide.
• MassLegalHelp — plain-language articles from Massachusetts legal aid programs, including a detailed page on money and property protected from collection, also published in Spanish.
• Court Service Centers — free in-person and remote help with court forms and procedure from the Massachusetts Trial Court.
• U.S. Bankruptcy Court — Massachusetts is a single federal district, the District of Massachusetts, with courthouses in Boston, Worcester, and Springfield.

If you need	Official starting point
To respond to a debt lawsuit	Court Service Centers or MassLegalHelp
To report a collector or a credit repair company	Attorney General consumer complaint
Free or low-cost legal help	MassLegalHelp or the LSC legal aid locator
Bankruptcy forms and local rules	The District of Massachusetts court site

Debt lawsuits in Massachusetts

Smaller consumer claims in Massachusetts often go to the small claims session. Larger ones go to District Court or Superior Court. The summons served on the defendant sets the response date, and that printed date is the one that counts.

Massachusetts is unusual in how much it demands of the creditor's own paperwork. Mass. R. Civ. P. 8.1 sets special rules for complaints on certain consumer debts. Mass. R. Civ. P. 55.1 sets special rules before a default judgment can be entered on those debts. Both cover collection suits on debts from revolving credit agreements, and the Trial Court publishes the forms.

In practice that means a collector cannot just file a bare complaint and take a default. Reading what was actually filed, against the checklist in those two rules, is often the most useful first step.

Missing the response date lets the creditor ask for a default judgment. That opens the door to a bank levy and property liens. Start with what to do when you are sued for a debt and the debt lawsuit response checklist.

Statute of limitations basics

Massachusetts gives six years. MGL c. 260 §2 says contract actions must start within six years after the claim accrues. Personal injury claims are the exception. The Trial Court Law Libraries say the same thing plainly for consumers: the limit for consumer debt is six years, and it applies to credit card debt and to oral and written contracts alike.

Judgments are different. Once a collector wins a judgment, the law libraries note, the period stretches to twenty years. After that the debt counts as legally paid and satisfied under MGL c. 260 §20.

Read how the statute of limitations on debt works before deciding anything about an old Massachusetts account.

Wage garnishment and protected income

This is where Massachusetts breaks from the rest of the country. MGL c. 246 §28 covers wages attached for a debt. It reserves a set amount and keeps it out of the creditor's reach. That amount is the greater of two figures: 85 percent of the debtor's gross wages, or 50 times the greater of the federal or the Massachusetts hourly minimum wage, for each week or part of a week.

Two things make that stronger than the federal rule. The percentage runs on gross wages, not take-home pay. And the weekly floor is 50 times the minimum wage, not the federal 30 times. The Trial Court Law Libraries record the state minimum wage as $15.00 under MGL c. 151 §1. Fifty times that figure is $750 for a week.

The same section also shields money a trustee holds in a pension. The term is defined broadly. It covers ERISA plans, Keogh plans, 401(a) plans, SEPs, 403(b) annuities, and IRAs. A look-back rule applies to unusually large deposits made in the five years before bankruptcy or judgment.

The shield is not universal. MGL c. 246 §28 does not apply when wages or a pension are attached for a divorce, separate maintenance, or child support order. Federal limits apply in those cases instead.

MGL c. 235 §34 protects a separate list from seizure. It includes $2,500 in cash or savings or other deposits at a bank or investment firm. It includes the full amount owed or paid as public assistance. And it includes a car worth up to $7,500 at wholesale resale value, or up to $15,000 for a vehicle owned or mostly used by a debtor who is a handicapped person or is 60 or older. Our wage garnishment guide covers the federal baseline and how exemption claims work.

Bankruptcy in Massachusetts

Bankruptcy is federal. Massachusetts is covered by a single district, the District of Massachusetts, which sits in Boston with additional locations in Worcester and Springfield. The court posts local rules, forms, a video series, FAQs for debtors, and administrative procedures for pro se electronic filing.

State law shapes what a filer keeps. The Massachusetts exemption list is MGL c. 235 §34, and the homestead protection sits in MGL c. 188, which §34 incorporates as the Fourteenth clause. The Trial Court Law Libraries list both MGL c. 235 §34 and the federal exemptions at 11 U.S.C. §522 on their bankruptcy page.

This guide does not state which exemption set a Massachusetts filer must use, because that choice turns on how state and federal law interact in a given case. Checking with a Massachusetts bankruptcy attorney, legal aid, or the court about which set applies is the right move before filing anything.

For the big picture, start with our bankruptcy hub, the Chapter 7 guide, and filing without a lawyer. If bankruptcy is not the right fit, the debt relief options page compares the alternatives.

Free and low-cost legal help

Many Massachusetts residents qualify for free help and never use it. MassLegalHelp, published by the Massachusetts Legal Assistance Corporation, points to the Massachusetts Legal Resource Finder for free civil legal help and publishes its guides in Spanish, Portuguese, Haitian Creole, Vietnamese, Chinese, and Cape Verdean Creole.

The Trial Court's Court Service Centers give free help with forms and procedure, and the Trial Court Law Libraries answer research questions by chat or email.

The bankruptcy court keeps its own legal advice and legal services page, which lists county bar lawyer referral services across eastern, central, and western Massachusetts along with pro bono programs. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

• ✕Assuming the federal 25 percent garnishment rule applies. MGL c. 246 §28 protects the greater of 85 percent of gross wages or 50 times the higher of the state or federal minimum wage each week.
• ✕Thinking the wage protection covers everything. It does not apply to attachments for divorce, separate maintenance, or child support orders, where federal limits apply instead.
• ✕Skipping the paperwork check. Mass. R. Civ. P. 8.1 and 55.1 set special requirements for consumer debt complaints and for defaults on those debts, and the Trial Court publishes the required forms.
• ✕Letting the response date pass because settlement talks are underway. Negotiating does not pause the court clock, and a default judgment can still be entered.
• ✕Believing a company that says it is state licensed for credit repair in Massachusetts. Ask which agency, which statute, and which license number, then verify it before paying anything.
• ✕Paying for help before checking MassLegalHelp, the Court Service Centers, and the Trial Court Law Libraries, which are free.

Credit repair companies in Massachusetts: registration, bond, and how to check

Massachusetts is the odd one out among the states in this guide. We did not find a Massachusetts credit services organization statute with a registration or bond rule of the kind Texas, Tennessee, and Indiana have. What the state has instead is broad consumer protection law, plus licensing aimed at neighboring businesses.

The Attorney General's general regulation is 940 CMR 3.00. It defines unfair and deceptive acts under MGL c. 93A across consumer deals. Debt collection has its own rules in 940 CMR 7.00. The Division of Banks separately governs how debt collectors, student loan servicers, and third party loan servicers behave, under 209 CMR 18.00. MGL c. 93 §§24 to 24K cover licensing of collection agencies.

What that means in practice: the missing credit repair registry is itself a vetting tool. Say a company selling credit repair here claims to be state licensed for that work. Ask which agency issued it, under which statute, and with which license number. Then verify it with the Division of Banks or the Attorney General before paying anything.

How to complain: use the Attorney General's consumer complaint form and the CFPB. Looking the company up in the CFPB complaint database first is worth the five minutes.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees. It also requires a written contract and gives a three-business-day right to cancel. It applies in Massachusetts with full force, and no one can remove accurate, timely information. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Massachusetts

Massachusetts is a single federal bankruptcy district, the District of Massachusetts, with courthouses in Boston, Worcester, and Springfield. The court site posts local rules, local forms, a bankruptcy video series, and a guide for people representing themselves.

The court's own legal advice and legal services page is the most efficient referral list in the state. It publishes the lawyer referral services for Norfolk, Barnstable, Boston, Bristol, Essex, Franklin, Hampden, Hampshire, and Worcester county bar associations, plus the Massachusetts Bar Association Lawyer Referral Service, and separately lists pro bono providers including Community Legal Aid, MetroWest Legal Services, Northeast Legal Aid, South Coastal Counties Legal Services, and the Volunteer Lawyers Project of the Boston Bar Association.

The same page warns about bankruptcy petition preparers: they are a typing service only, no training or certification is required to act as one, and they cannot give legal advice, represent debtors at the meeting of creditors, or draft motions.

If income is limited, the LSC legal aid locator finds the federally funded program for any Massachusetts address. The ordered path, what a consultation costs, and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

Can my wages be garnished in Massachusetts for credit card debt?

Only a thin slice. MGL c. 246 §28 reserves and exempts from attachment the greater of 85 percent of the debtor's gross wages or 50 times the greater of the federal or the Massachusetts hourly minimum wage for each week. Because the percentage runs on gross wages and the floor is 50 rather than 30 times the minimum wage, far less is reachable than under the federal rule.

What is Massachusetts's statute of limitations on credit card debt?

Six years. MGL c. 260 §2 requires contract actions to be commenced within six years after the cause of action accrues, and the Trial Court Law Libraries state that the six-year period applies to consumer-related debt including credit card debt and both oral and written contracts.

How long does a judgment last in Massachusetts?

Twenty years. The Trial Court Law Libraries explain that once a debt collector obtains a judgment, the period extends to twenty years, after which the debt is considered legally paid and satisfied under MGL c. 260 §20.

Does the Massachusetts wage protection cover child support?

No. MGL c. 246 §28 says its provisions do not apply in any proceeding to attach wages or a pension to satisfy a divorce, separate maintenance, or child support order, and that federal limits on the amounts that may be trusteed, assigned, or attached apply in those actions instead.

How much money in a bank account is protected in Massachusetts?

MGL c. 235 §34 exempts $2,500 in cash or savings or other deposits in a banking or investment institution from seizure on execution, along with the wage amount protected by the same clause and the full amount owing or paid to a person as public assistance. Federal benefits carry separate protection.

Are there special court rules for consumer debt lawsuits in Massachusetts?

Yes. Mass. R. Civ. P. 8.1 sets special requirements for complaints on certain consumer debts, and Mass. R. Civ. P. 55.1 sets special requirements for defaults and default judgments on those debts. Both cover collection actions on debts arising out of revolving credit agreements, and the Trial Court publishes the required forms.

Can Massachusetts filers use the federal bankruptcy exemptions?

This guide does not state which set applies. The Massachusetts exemption list is MGL c. 235 §34 with homestead protection under MGL c. 188, and the Trial Court Law Libraries list both that statute and the federal exemptions at 11 U.S.C. §522 on their bankruptcy page. Checking with a Massachusetts bankruptcy attorney or the court about which set applies is the safer approach.

Where do I find legal aid in Massachusetts?

MassLegalHelp, published by the Massachusetts Legal Assistance Corporation, points to the Massachusetts Legal Resource Finder and publishes guides in several languages. The Trial Court runs free Court Service Centers, the Trial Court Law Libraries answer research questions, and the bankruptcy court lists pro bono programs by region.

Do credit repair companies have to be registered in Massachusetts?

This guide did not find a Massachusetts credit repair registration or bond statute of the kind several other states have. Massachusetts instead applies MGL c. 93A and 940 CMR 3.00, with the Division of Banks regulating debt collectors and loan servicers under 209 CMR 18.00. Any company claiming a Massachusetts credit repair license should be asked to name the agency and number so it can be verified.

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