Debt Collection: Exempt Income & Assets

monopoly-bankrupt

In Massachusetts, the following sources of income are off limits to creditors:

  • Pensions or ERISA Retirement Plans – M.G.L. c. 235, § 34A and c. 32, §§ 19, 41.
  • Social Security (OASDI, SSDI and SSI) – 42 U.S.C., § 407
  • Workers Compensation – M.G.L. c. 152, § 47
  • Unemployment Compensation – M.G.L. c. 151A, §36
  • Veterans Benefits – M.G.L. c. 224, § 16 and 38 U.S.C., § 3100
  • Public Assistance and Welfare – M.G.L. c. 235, §34 and M.G.L. c. 118, § 10, respectively
  • A portion of the debtor’s weekly wages.  According to M.G.L. c. 246, § 28 the amount that a creditor may collect cannot exceed “the greater of 85 per cent of the debtor’s gross wages or 50 times the greater of the federal or Massachusetts hourly minimum wage for each week.”

Additionally, Massachusetts prevents creditors from seizing certain types of assets.

  • A debtor’s car valued at $7,500 or less is exempted from the collection process.
  • So is a debtor’s savings up to $2,500.

If you have any questions about consumer protection or debt collection, please contact me at justin@jrmccarthy.com

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