Types

• Massachusetts consumers usually file Chapter 7 or 13. Some, especially self-employed people or farmers, might choose to reorganize their financial obligations while keeping assets in Chapters 11 or 12, according to the United States Bankruptcy Court District of Massachusetts. Chapter 7 eliminates the legal obligation to pay most debts; Chapter 13 permits consumers to repay some of their bills like credit card accounts under court supervision.
  
  

Chapter 7 Income Requirements

• You must either pass a federal means testing formula or make less than the state’s median income to successfully file Chapter 7, according to the United States Bankruptcy Court District of Massachusetts. As of 2010, the annual median income for a single Massachusetts resident was $53,505, according to the U.S. Trustee Program. A family of four living in the state could bring in up to $99,648 annually without the head of household needing to pass the means formula in order to file Chapter 7.
  
  

Considerations

• If you have secured debts such as an auto loan or home mortgage, then bankruptcy will likely not stop the creditor from eventually seizing the collateral used to guarantee the loan, according to the United States Bankruptcy Court District of Massachusetts.
  
  

Warnings

• If you used drugs in a rental property or allowed people to use or sell drugs on that property, Massachusetts bankruptcy law won’t protect you against eviction even during your bankruptcy case. The landlord can apply for, and receive, an exemption to the automatic stay and evict you even during the bankruptcy process. Also, you can’t use any type of bankruptcy to reduce or eliminate court fines, child support or alimony debts.
  
  

Costs

• Unless you qualify for a fee waiver, you must pay $274 to file Chapter 13 or $299 to file Chapter 7 as of 2010, according to the United States Bankruptcy Court District of Massachusetts. Sometimes the court staff will allow you to pay the costs in an installment arrangement. This does not include the costs of the required prebankruptcy credit counseling or fees for legal representation if you choose to hire an attorney.