Find Bankruptcy Lawyers Near You in Boston, MA

The cost of hiring a bankruptcy lawyer in Massachusetts varies by case type and complexity. For a Chapter 7 filing in Boston, attorney fees generally range from $1,500 to $3,500, with many attorneys charging a flat fee that covers the entire case from petition preparation through the discharge hearing. Chapter 13 cases involve higher fees, typically between $3,500 and $6,000, because they require drafting a repayment plan, attending multiple court hearings, and ongoing case administration over several years. Some attorneys offer payment plans for Chapter 7, allowing you to pay the fee in installments before filing, while Chapter 13 fees are often paid through the court-approved repayment plan.

In addition to attorney fees, you must pay the federal court filing fee: $338 for Chapter 7 and $313 for Chapter 13. These fees can be paid in installments with court approval, but they cannot be waived for most filers. Low-income residents may qualify for pro bono assistance through organizations like the Volunteer Lawyers Project or Greater Boston Legal Services, which provide free representation for Chapter 7 cases. Credit counseling and debtor education courses, required by law, cost approximately $30 to $50 each, though reduced fees are available for those who demonstrate financial hardship. This information is general and does not constitute legal advice; you should consult a qualified attorney for guidance specific to your situation.

Bankruptcy law in Boston, Massachusetts, provides individuals and businesses a legal pathway to address overwhelming debt through federal court proceedings. The three primary chapters available are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, often called liquidation bankruptcy, involves the sale of non-exempt assets by a trustee to pay creditors, with most remaining unsecured debts discharged. This chapter is typically suitable for individuals with limited income and few assets who cannot afford a repayment plan. Chapter 13, or reorganization bankruptcy, allows debtors with regular income to propose a three-to-five-year repayment plan to catch up on secured debts like mortgages and car loans while paying a portion of unsecured debts. It is often chosen by homeowners facing foreclosure or individuals with income above the Chapter 7 means test threshold. Chapter 11, traditionally used by businesses, permits reorganization of debts and operations, though it is also available to individuals with debt exceeding Chapter 13 limits. In Boston, small business owners frequently file Chapter 11 to restructure commercial leases and vendor contracts while continuing operations.

Massachusetts bankruptcy law incorporates unique state-specific exemptions that significantly affect what property a debtor can keep. Unlike many states, Massachusetts requires debtors to use state exemptions rather than the federal exemption system. The Massachusetts homestead exemption is one of the most protective in the nation, allowing homeowners to exempt up to $500,000 of equity in their primary residence under Massachusetts General Laws Chapter 188, Section 1A. For individuals who are elderly, disabled, or over age 62, the homestead exemption increases to $500,000 as well, though the standard cap applies to most filers. The vehicle exemption in Massachusetts permits debtors to exempt up to $7,500 in equity in one motor vehicle under M.G.L. c. 235, § 34. The wildcard exemption, found in M.G.L. c. 235, § 34A, allows debtors to exempt up to $1,000 of any personal property not covered by other exemptions, plus up to $500 of unused homestead exemption. Additional exemptions cover household furnishings, clothing, tools of trade up to $5,000, and retirement accounts such as IRAs and 401(k)s, which are fully exempt under state and federal law. These exemptions mean many Boston residents can file Chapter 7 without losing their home or vehicle, provided they do not exceed the equity caps.

The means test determines eligibility for Chapter 7 bankruptcy and is a critical hurdle for many Boston filers. This test compares a debtor's current monthly income to the median income for a household of the same size in Massachusetts. As of 2025, the median annual income for a single-person household in Massachusetts is approximately $89,000, while a family of four has a median of roughly $115,000. If a debtor's income falls below the median, they automatically qualify for Chapter 7. If income exceeds the median, the debtor must complete a detailed calculation of allowable expenses under IRS standards to determine disposable income. If the disposable income over five years is less than $7,700, the debtor may still qualify for Chapter 7. If disposable income exceeds $12,850, Chapter 13 is presumed abusive and the debtor must file under Chapter 13. For those between these thresholds, the court applies a percentage test. Boston residents with high incomes but significant allowable expenses, such as mortgage payments or medical costs, may still pass the means test. The test requires careful documentation of income from all sources, including wages, self-employment, rental income, and unemployment benefits.

Filing bankruptcy in Boston triggers an automatic stay, an immediate court order that stops most collection actions. Creditors must cease phone calls, wage garnishments, foreclosure proceedings, repossession efforts, and lawsuits. The automatic stay takes effect the moment the petition is filed electronically with the U.S. Bankruptcy Court for the District of Massachusetts, which has locations in Boston, Worcester, and Springfield. From filing to discharge, a Chapter 7 case typically takes four to six months. The process begins with mandatory credit counseling from an approved agency within 180 days before filing. After filing, the debtor attends a meeting of creditors, known as a 341 hearing, usually scheduled 20 to 40 days after filing. In Boston, these hearings are held at the federal courthouse at 5 Post Office Square or via video conference. Approximately 60 days after the 341 hearing, the court issues a discharge order, eliminating eligible debts. Before receiving the discharge, the debtor must complete a debtor education course from an approved provider. Chapter 13 cases last three to five years, with the debtor making monthly payments to a trustee who distributes funds to creditors. The court confirms the repayment plan after a hearing, typically within 45 days of filing.

The costs of bankruptcy in Boston include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as of 2025. These fees can be paid in installments with court approval, though Chapter 7 fees cannot be waived for most filers. Attorney fees in Boston vary by case complexity. For a straightforward Chapter 7 case, attorney fees typically range from $1,500 to $3,500, with many firms offering flat-fee arrangements. Chapter 13 attorney fees are higher, often ranging from $3,500 to $6,000, because these cases require drafting a repayment plan and ongoing court oversight. Some attorneys allow payment plans for Chapter 13 fees, with the fee included in the plan and paid through the trustee. For individuals with very low income, pro bono resources exist. The Volunteer Lawyers Project of the Boston Bar Association offers free legal assistance for bankruptcy cases to qualifying low-income residents. Additionally, the Massachusetts Bankruptcy Court maintains a list of approved credit counseling agencies that offer reduced-fee courses for those who cannot afford the standard $30 to $50 fee. Legal aid organizations such as Greater Boston Legal Services may also provide limited representation for Chapter 7 filings.

Life after bankruptcy requires strategic planning to rebuild credit and manage remaining obligations. A Chapter 7 discharge stays on a credit report for ten years from the filing date, while a Chapter 13 discharge remains for seven years. Despite this, many individuals can begin rebuilding credit immediately after discharge. Secured credit cards, which require a cash deposit equal to the credit limit, are a common starting point. Making small purchases and paying the balance in full each month demonstrates responsible credit use. Credit scores often improve within 12 to 24 months after discharge as old negative accounts fall off and new positive payment history accumulates. However, not all debts are dischargeable in bankruptcy. Student loans are presumptively non-dischargeable unless the debtor proves undue hardship through an adversary proceeding, a difficult standard requiring evidence of permanent disability or inability to maintain a minimal standard of living. Most tax debts from recent years, specifically income taxes less than three years old, are not dischargeable. Child support, alimony, and debts arising from fraud or willful injury also survive bankruptcy. In Massachusetts, certain debts like court-ordered restitution or DUI-related judgments remain enforceable. Debtors should also note that reaffirmation agreements, which allow keeping secured property like a car by agreeing to continue paying the debt, must be approved by the court.