Homestead Act

If you are a homeowner in Massachusetts, the Homestead law can protect your home from creditors. The homestead law in MA is M.G.L. c. 188, which states that your home is protected only if:

• You live in the house or plan to live in the house

• The house is or will be your “primary residence”, which is where you live most of the time

• Manufactured and mobile homes also are protected under this law.

This law does not protect your home from “secured” loans where you’ve agreed to use your home as collateral. For example, a mortgage is a secured loan of this type. The homestead law cannot stop a mortgage lending company from foreclosing on your home for missed payments.

A judge’s final decision in a case against you can decide how much you must repay creditors. The creditors can take some of your assets, such as bank accounts and cars. You can keep some assets protected from creditors that are “exempt.”