Friday, December 3, 2010

2 cows, 12 sheep, 2 swine and 4 tons of hay.

Are you overwhelmed with debt, but worried about your sheep? Bankruptcy might be the answer to your problems.

When filing a Bankruptcy as a resident of Massachusetts a debtor can choose to use the exemptions allowed under either State or Federal law, but you must choose one or the other. There are many exemptions that are similar under both schemes, such as the exemption of most qualified retirement plans.

There is one significant difference between the Massachusetts and Federal exemptions, though: under the Massachusetts' exemptions you can exclude from the bankruptcy 2 cows, 12 sheep, 2 swine and 4 tons of hay (M.G.L. c. 235 s. 34)

There is also one other significant difference worth mentioning between the Federal and Massachusetts exemptions: the equity in a residence is exempt under the Massachusetts exemptions up to $500,000 but only $20,200 in the Federal exemptions. Of course, who needs a home so long as you have your flock.

UPDATE: The Massachusetts Exemptions have recently changed. For more information read our post on the changes: New Massachusetts Property Exemptions: The Return of 2 Cows, 12 Sheep and 2 Swine.

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