Understanding the Massachusetts Homestead Exemption: Protecting Your Home from Creditors

The Massachusetts Homestead Exemption Law is a crucial tool that can protect your home from being sold to satisfy creditor claims. Whether you’ve encountered financial hardship or an unexpected event like a medical emergency, this law could be the difference between keeping your home or losing it to pay off debts. Below, you'll find a video explaining this content in more detail.

What is the Massachusetts Homestead Exemption?

The Massachusetts Homestead Exemption protects a portion of the equity in your primary residence from creditors. Homeowners are automatically protected up to $125,000 of their home’s equity without having to file anything. This means that if you owe $50,000 in medical bills, for example, your home’s equity is shielded up to that $125,000 limit, and creditors cannot force the sale of your home to satisfy the debt.

However, if your debts exceed $125,000, creditors could potentially force the sale of your home to recover what you owe. The good news? You can increase your protection by filing a Declaration of Homestead.

Increasing Your Protection

By filing a Declaration of Homestead, you can increase the protection on your home’s equity to $500,000. If you and your spouse are both over the age of 62, that protection increases even further—to $1 million.

Most attorneys file a Homestead Declaration on behalf of homeowners when they purchase their home, but this isn’t always the case. It’s important to check and ensure this has been done for your property.

How to Check If You Have a Homestead Declaration

You can easily check if you have a Homestead Declaration by visiting the Massachusetts Registry of Deeds website. Simply search for your property’s records under your county, and look for a document labeled "Homestead" or "HMSTD." If you don't find one, it's time to take action.

Filing a Homestead Declaration

Filing a Declaration of Homestead is a straightforward process. You can obtain the form from the Massachusetts government website, fill it out, and bring it to your local Registry of Deeds. The filing fee is only $35, and this small investment could protect your home from being sold to satisfy creditors.

Why You Should Act

Taking the time to file a Homestead Declaration could mean the difference between staying in your home or losing it to pay off unexpected debts. While you can file this yourself, I recommend consulting with an attorney to ensure it’s done correctly—this is not something you want to get wrong.

Need Help?

If you need assistance or want to check whether your home is protected, feel free to reach out. I’m still offering free consultations and would be happy to help. Contact me via call, text, or email—I'll include all my information below.

Stay protected, and happy planning!

Contact John Bayog, Bayog Law

• Email: [email protected]

• Phone: 978-704-8696

• Website: www.bayoglaw.com/calendar