What money in my bank account is protected from creditors in Massachusetts?

1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The 31 C.F.R. Part 212 two-month rule automatically protects direct-deposited federal benefits.

2. State Wild-Card / Cash Exemption. M.G.L. c. 235, § 34, sixteenth (paragraph 16) provides an automatic exemption of $2,500 in any bank account — bank must release this amount without claim. § 34, sixteenth provides $1,000 wild card. § 246, § 28 protects wages of debtor up to $750 weekly automatically through trustee process.

3. Other Source-Specific Exemptions. Public assistance (c. 18, § 11), unemployment (c. 151A, § 36), workers' comp (c. 152, § 47), child support, disability income, life insurance proceeds (c. 175, § 110A), and pensions exempt.

4. Retirement Accounts. M.G.L. c. 235, § 34A exempts ERISA plans, IRAs, 401(k)s, 403(b)s, Roth IRAs, Keogh — broad protection. § 32, § 19 protects public-employee retirement.

5. Joint Accounts. Massachusetts recognizes tenancy by entireties for real estate (and post-1980 personalty in some cases); joint bank accounts may invoke entireties protection if titled appropriately.

6. Claim of Exemption Process. Mass. R. Civ. P. 4.2 trustee process: debtor receives notice; debtor may file motion to dissolve attachment within reasonable time (typically 10 days of return date).

7. Burden of Proof. Debtor proves exempt source.

8. Penalty for Wrongful Garnishment. Court may award costs and fees under c. 231, § 6F for frivolous garnishment.

9. Bankruptcy Interplay. Massachusetts allows election of state or federal exemptions; Chapter 7 reaches non-exempt cash; Chapter 13 retains.

This is legal information, not legal advice.