{"id":373985,"date":"2016-03-31T21:35:32","date_gmt":"2016-04-01T02:35:32","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/massachusetts-law\/massachusetts-homestead-laws.html"},"modified":"2026-09-28T08:48:23","modified_gmt":"2026-09-28T13:48:23","slug":"massachusetts-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/massachusetts-law\/massachusetts-homestead-laws.html","title":{"rendered":"Massachusetts Homestead Laws"},"content":{"rendered":"\n
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Massachusetts Homestead Laws<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Massachusetts homestead exemption<\/span> automatically protects up to $125,000 of equity in a debtor’s principal residence<\/span> during Chapter 7 or Chapter 13 bankruptcy. Homeowners<\/span> can expand this protection up to $1,000,000 (or up to $2,000,000 for qualifying elderly or disabled individuals) by recording a Declaration of Homestead<\/span> with their local <\/span>Registry of Deeds<\/span>.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Filing for Chapter 7 or Chapter 13 bankruptcy doesn\u2019t automatically mean you\u2019ll lose your home. While the bankruptcy trustee may initiate a\u00a0forced sale<\/span>\u00a0of your\u00a0real estate<\/span>, protections are in place\u00a0to help you keep your primary dwelling. One of the most important of these is the homestead exemption<\/span>.<\/p>\n

In Massachusetts, bankruptcy filers can choose between state and federal exemptions. Those with equity in their home will likely opt for the state homestead exemption<\/span><\/a>, as it\u2019s much larger than the federal one.<\/p>\n

This article explains how the homestead exemption<\/span> works in Massachusetts, including the exemption amount. It also shows you how to claim the Massachusetts homestead exemption<\/span>. If you\u2019re thinking about filing bankruptcy but aren\u2019t sure if it\u2019s the best move for you, contact an experienced Massachusetts bankruptcy attorney<\/a>. They\u2019ll review your financial situation and tell you whether the state exemptions will protect the equity in your home.<\/p>\n

What Is the Homestead Exemption<\/span> and How Does It Work?<\/h2>\n

The homestead exemption<\/span> protects the equity in a person’s principal residence<\/span> during bankruptcy. You can claim\u00a0homestead protection<\/span>\u00a0under either state bankruptcy laws or federal law<\/a>.<\/p>\n

When you file bankruptcy, you\u2019ll provide the trustee with a list of your debts and assets. For each asset, you must list the current value and confirm your ownership interest<\/span> in the property. For example, if you only have a life estate<\/span><\/a> in a piece of real property, you must indicate this on your bankruptcy petition.<\/p>\n

As long as you include your primary residence<\/span> in your asset list, the Massachusetts\u00a0homestead exemption<\/span>\u00a0will automatically apply to the equity\u00a0in your home. The trustee will review your paperwork, including your homestead form<\/span>, to see whether your home equity exceeds the Massachusetts\u00a0homestead exemption<\/span> amount. If it doesn\u2019t, your home will be fully protected. If it does, the bankruptcy trustee may decide to sell your home and use the proceeds to pay your secured and, in some cases, unsecured creditors<\/span><\/a>.<\/p>\n

Overview of the Massachusetts Homestead Exemption<\/span><\/h2>\n

The Commonwealth of Massachusetts<\/span> offers automatic <\/span>homestead protection<\/span> to debtors. The automatic exemption provides $125,000 in protection. However, under the Massachusetts <\/span>Homestead Act<\/span><\/a>, most people can protect up to $1,000,000 of the equity in their home.<\/p>\n

According to Massachusetts homestead protection<\/span> law<\/span> (M.G.L<\/span>. c. 188), to take advantage of the full exemption amount, you must record a \u201cDeclaration of Homestead<\/span>\u201d with the local <\/span>Registry of Deeds<\/span> before filing your bankruptcy petition<\/a>. After you record your declaration, file your\u00a0bankruptcy petition,<\/a>\u00a0and let the trustee know\u00a0you\u2019re opting for the state homestead exemption<\/span>.<\/p>\n

Homestead Exemption<\/span> Limits in Massachusetts<\/h2>\n

In Massachusetts, debtors who file bankruptcy can protect up to $1,000,000 of the equity in their family home<\/span>. Under Massachusetts General Laws Chapter<\/span> 188<\/a>, this amount increases to $2,000,000 if the individual is disabled or over 65. To qualify for this double homestead amount, the Social Security<\/span> Administration must have deemed you disabled.<\/p>\n

To determine your home equity, take your home\u2019s current market value and subtract your mortgage balance, any\u00a0home equity loan<\/span> balance<\/a>, and any\u00a0liens<\/span>\u00a0against the property. As long as your total equity is below $1,000,000, your home is safe from sale.<\/p>\n

Impact of Marital Status<\/span> on the Estate of Homestead<\/span><\/h2>\n

Massachusetts has specific laws about how a debtor\u2019s marital status<\/span> will impact their homestead exemption<\/span>. Married couples have a homestead exemption<\/span> of $1,000,000 per residence, per family, for homeowners<\/span> who file a Declaration of Homestead<\/span><\/a>.<\/p>\n

If you\u2019re divorced and signed the deed of your house over to your former spouse<\/span>, they\u2019ll have the benefit of the homestead exemption<\/span>. In this situation, you\u2019ll lose yours. Having minor children<\/span> doesn\u2019t affect your homestead exemption<\/span>.<\/p>\n

Qualifying Property Types<\/h2>\n

Whether you live in Boston<\/span> or Cambridge, you can apply the homestead exemption<\/span> to almost any type of dwelling. As long as it\u2019s your principal residence<\/span><\/a>, the exemption applies.<\/p>\n

Some of the types of dwellings that qualify for the Massachusetts homestead exemption<\/span> include the following:<\/p>\n