Alliance Settlement helps Massachusetts residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how Massachusetts handles lawsuits, garnishment and old debts.
| Massachusetts debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 6 years |
| Wage garnishment for consumer debt | At least 85% exempt |
| Notable protection | $2,500 bank exemption |
Massachusetts's statute of limitations on debt
Massachusetts gives creditors 6 years to sue on consumer debt. Keep in mind the clock limits lawsuits, not collection calls or credit reporting. Before paying on an old account, find out whether it's past the deadline.
What Massachusetts creditors can take from your paycheck
Massachusetts exempts the greater of 85% of gross wages or 50 times the minimum wage per week. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other Massachusetts consumer protections
The first $2,500 in a Massachusetts bank account is protected, and Attorney General rules limit collector calls.
How debt relief companies are regulated in Massachusetts
Massachusetts restricts budget planning services and applies strong consumer protection law. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Massachusetts residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Free consultation. We review your debts, income and budget and tell you honestly whether settlement fits.
- Build your savings. You make one affordable monthly deposit into a dedicated account you control.
- We negotiate. As funds build, we negotiate with each creditor to settle for less than the balance owed.
- Get resolved. Each settlement is documented in writing, and you approve every one.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Massachusetts?
Massachusetts gives creditors 6 years to sue on consumer debt. An expired statute of limitations is a defense you usually have to raise in court, so never ignore a lawsuit, even on an old debt.
Can my wages be garnished for credit card debt in Massachusetts?
Massachusetts exempts the greater of 85% of gross wages or 50 times the minimum wage per week.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Massachusetts residents?
Yes. Alliance Settlement works with clients throughout Massachusetts, including Boston, Worcester, Springfield and Lowell, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.