Maine Bankruptcy Laws

Key Points

Maine is an "opt out" state. This means you aren't allowed to use the federal bankruptcy exemptions when filing bankruptcy in Maine.

You can take the aid of the Maine exemptions only in case of filing bankruptcy. Apart from that you could also make use of any of the federal non-bankruptcy exemptions. These include the likes of veterans' benefits and military retirement accounts.

In Maine, the married couples who file a joint bankruptcy are allowed to "double" the exemption amounts. In other words, if you file a joint bankruptcy in Maine with your spouse, then you can each claim full exemption amount for any property belonging to you.

Homestead

As a homeowner you're exempt up to 47,500 dollars of equity, both in case of any real or personal property used as residence. The same exemption amount is applicable in case of co-ops and burial plots as well.

If your dependents reside with you, then you can protect up to 95,000 dollars on your home.

Moreover, if you're 60 years of age or older, then again you can protect up to 95,000 dollars. This would be applicable in cases of mental or physical disability as well.

Motor Vehicle or Automobile

Exemption up to 5,000 dollars of value is allowed for 1 motor vehicle.

Wages

No exemption.

Pension or Retirement Benefits

Pension, profit sharing, payments or accounts under a stock bonus, annuity are exempt to the extent reasonably necessary for your support. Any similar plan on account of death, disability, age or length of service are also included.

Tools of the Trade

As a debtor you're exempt for up to 5,000 dollars in terms of the tools of your trade, including books, tools and inventory.

Personal Property

Household goods, furnishing, appliances, animals, crops, books,musical instruments and clothing items that are valued at up to 200 dollars per item are exempted.

Jewelry for personal or family use is exempt up to 750 dollars.

1 Cooking stove, furnaces and stoves used for heating, cooking. Heating fuel up to 5 tons of coal, 10 cords of wood and 1,000 gallons of petroleum, per item, for personal or family use.

Up to 6 months worth of seed, feed, food and the materials used for raising food.

1 Boat, up to 5 tons burden that's essentially used for the purpose of commercial fishing. Plus 1 each type of professional logging equipment that's needed for harvesting and hauling wood commercially.

The insurance proceeds for exempt property that's damaged by a natural disaster.