Financial Statement Form TC0098 in Massachusetts Small Claims

What Form TC0098 Is

Form TC0098 — the Statement of Finances and Income, also called the Financial Statement of Judgment Debtor — is the sworn disclosure form that a debtor must complete for a payment review hearing in Massachusetts small claims court. It details their income, expenses, assets, dependents, and any statutory exemptions they're claiming.

Under Uniform Small Claims Rule 7B(a)(1), this form is kept separate from other case papers and unavailable for public inspection. You as the judgment creditor have the right to inspect and review it, along with the court and both parties' attorneys (if any).

What the Debtor Must Disclose

The Financial Statement requires the debtor to list:

• Employment and income — Employer name, job title, gross and net wages, any second jobs or side income
• Other income sources — Social Security, disability, pensions, rental income, alimony received, public assistance
• Bank accounts — Every checking, savings, and investment account with institution names and approximate balances
• Real property — Any real estate owned, including the address, estimated value, mortgage balance, and whether a homestead declaration has been filed
• Vehicles — Make, model, year, value, and any outstanding loan balance
• Other assets — Business interests, stocks, retirement accounts, personal property of significant value
• Monthly expenses — Rent or mortgage, utilities, food, transportation, medical, insurance, child care
• Dependents — Anyone the debtor supports financially

The debtor signs this under the penalties of perjury. Deliberately hiding assets or income on a sworn financial statement is a serious matter that can affect contempt proceedings down the road.

How to Review It as a Creditor

Don't just glance at the bottom line. Work through the form systematically before or during the hearing:

Check the math. Add up the listed income sources and compare against the stated total. Do the same with expenses. Arithmetic errors — sometimes convenient ones — are common on self-completed forms.

Look for missing accounts. A debtor who claims no bank accounts while holding a job with direct deposit is either unbanked (possible) or omitting information (more common). Ask the magistrate for permission to question the debtor about how they receive and access their pay.

Compare income against exemption floors. Massachusetts protects weekly gross wages up to $750 (50 times the $15/hour state minimum wage) from garnishment under G.L. c. 246, § 28. If the debtor earns above that floor, there's garnishable income.

Note real property ownership. Even if the debtor's home equity is protected by homestead exemptions ($125,000 automatic, $1,000,000 declared), knowing they own property helps you assess whether a real-estate levy is worthwhile. A real-estate execution lien requires a Writ of Execution and a deputy sheriff's levy and Registry recording; it can affect a later sale or refinance, subject to homestead protections.

Flag lifestyle inconsistencies. A debtor claiming poverty but listing a $600 car payment or $200 monthly entertainment spending may have more ability to pay than the bottom line suggests.

What You Can Ask at the Hearing

At the Rule 7B payment hearing, the court considers the debtor's statement and ongoing expenses. The plaintiff has the burden to prove the debtor can pay without using exempt income or assets. The court may allow follow-up questions; use the Financial Statement as your roadmap:

• "Your form shows no bank accounts — how do you receive your paycheck?"
• "You list one vehicle — does anyone else in your household own a car in your name?"
• "You show $0 in savings — have you transferred money to another person or account in the last 90 days?"

Keep questions factual and tied to the form. The hearing isn't a deposition, but the magistrate generally allows reasonable follow-ups that help determine the debtor's actual payment capacity.

What Happens After the Review

Based on the Financial Statement and testimony, the court may enter a payment order for the judgment and costs, due on a stated date or in installments, if the plaintiff proves the debtor can pay without using exempt income or assets. If the debtor's circumstances genuinely leave nothing above statutory exemption floors, the court may find the debtor currently unable to pay.

That finding doesn't erase your judgment. It remains enforceable for 20 years, and you can request a new payment hearing if the debtor's financial situation changes.

The complete Massachusetts judgment collection guide includes a chapter on auditing the debtor's Financial Statement with a checklist of specific items to verify and questions to prepare before the hearing.

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