Maine Bankruptcy Laws
Maine has one bankruptcy court district: Maine Bankruptcy Court with four locations in Augusta, Bangor, Portland and Presque Isle. It serves the entire state of Maine.
Maine Bankruptcy Exemptions
The Chapter 7 Bankruptcy Code allows you to keep property or assets such as a car, home, land and other assets by claiming them as "exempt" under Federal and State bankruptcy exemption laws. According to Lawyers.com, under Maine bankruptcy laws, you may keep:
- Your residence or burial plot to $35,000 or $70,000 if minor dependents live with you or if you or any of your dependents are either at least 60 years old or disabled
- Proceeds from sale of residence are exempt for six months from receipt if used to purchase another residence
- One motor vehicle, up to $5,000 in value
- Clothing, furniture, appliances, household goods, books, animals, crops or musical instruments, up to $200 in value per item
- Jewelry to $750
- Tools of the trade to $5,000
- One cooking stove, all furnaces or stoves used for heating and cooking and heating fuel
- Food for six months
- Seeds, fertilizers, feed and other material to raise and harvest food through one growing season
- Tools and equipment for raising and harvesting food
- One of every type of farm implement to raise and harvest agricultural products commercially
- One boat, not exceeding 5 tons burden, used for commercial fishing
- Unmatured life insurance contract that is not a credit life insurance contract
- Life insurance dividends or interest to $4,000
- Professionally prescribed health aids
- Social security benefit, unemployment compensation and local public assistance benefit
- A veterans' benefit
- A disability, illness and unemployment benefit
- Alimony, support or separate maintenance necessary for support
- Payment or account under a stock bonus, pension, profit-sharing, annuity or similar plan or contract on account of illness, disability, death, age or length of service
- Payment or account under an individual retirement account or similar plan or contract on account of illness, disability, death, age or length of service to $15,000 or to the extent reasonably necessary for the support of the debtor or dependents, whichever is greater
- An award under a crime victim's reparation law
- A payment on account of the wrongful death of an individual of whom you are a dependent
- A payment under a life insurance contract that insured the life of an individual of whom you were a dependent on the date of the individual's death
- A payment to $12,500 for personal bodily injury
- A payment in compensation for your loss of future earnings or for the loss of future earnings of an individual of whom you are or were a dependent
- Other property to $500
- Up to $6,000 of any unused residence exemption towards clothing, furniture, appliances, tools of the trade, legal awards and life insurance benefits
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
As of October 17, 2005, you now must have been a permanent resident in the State of Maine for two years prior to filing for bankruptcy in order to use its state exemptions.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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