Debt relief in Massachusetts: collection rules, time limits and your options
Updated November 9, 2026
Massachusetts at a glance (checked November 2026)
| Massachusetts | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years |
| Wage garnishment for consumer debt | Up to 15% of gross pay; weekly pay up to $750 is protected |
| Money in the bank | Up to $2,500 is protected |
| Collection calls | No more than 2 in 7 days, counting texts |
| Who licenses debt collectors | Division of Banks |
| Where to complain | Division of Banks, the Attorney General, and the CFPB |
Debt collection rules in Massachusetts
Debt collectors need a license from the Massachusetts Division of Banks (Mass. General Laws chapter 93, sections 24 to 28). Both the Division's rules and the Attorney General's debt collection rules (940 CMR 7.00) limit how collectors and creditors can contact you, and the Attorney General's rules cover original creditors and debt buyers as well as collection agencies.
Massachusetts has some of the strictest call limits in the country. A creditor or collector can't call you more than twice in any 7 days about a debt, and texts and recorded messages count. The state's highest court has held that a call counts even if nobody answers.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
Massachusetts gives creditors 6 years for most debts, including credit cards, personal loans and medical bills (Mass. General Laws chapter 260, section 2). The clock usually starts when you default.
Once 6 years have passed, a collector can still ask you to pay but can't sue you or threaten to. Get advice before paying anything on a very old debt.
Many collection cases go to small claims court. If you don't go to the hearing, you'll likely lose by default, and a court judgment in Massachusetts lasts 20 years.
What can be garnished in Massachusetts
Massachusetts protects the greater of 85% of your gross pay or 50 times the minimum wage each week, which is $750 at the state's $15 minimum wage (Mass. General Laws chapter 246, section 28). So a creditor with a judgment can take at most 15% of your gross pay, and nothing if you earn $750 a week or less.
Up to $2,500 in your bank account is also protected. Child support and taxes follow separate rules. Social Security, SSI and other public benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Massachusetts
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Look for an agency accredited by the NFCC or FCAA.
- See your payoff date: our credit card payoff calculator shows when your cards will be paid off at the payment you can afford.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Massachusetts lets you choose between its own exemption list and the federal one. The state's homestead protection is generous, up to $500,000 of equity if you've recorded a declaration of homestead. A bankruptcy attorney can tell you which list keeps more of what you own.
Where to get help or complain
- Massachusetts Division of Banks licenses debt collectors and takes complaints about them.
- Massachusetts Attorney General, debt collection explains your rights and takes complaints about creditors and debt buyers. The consumer hotline is 617-727-8400.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Mass Legal Help has free guides on dealing with collectors and on debt cases in court.
General information about Massachusetts law, not legal advice. Checked November 2026.