{"id":286853,"date":"2021-04-22T14:19:48","date_gmt":"2021-04-22T19:19:48","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/maine-bankruptcy-exemptions-and-law.html"},"modified":"2026-10-05T10:36:30","modified_gmt":"2026-10-05T15:36:30","slug":"maine-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/maine-law\/maine-bankruptcy-exemptions-and-law.html","title":{"rendered":"Maine Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Maine Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Maine<\/span> bankruptcy laws<\/span> allow individuals and businesses struggling with debt to eliminate or restructure their financial obligations under state and federal regulations. Filers can pursue Chapter 7 liquidation<\/span> or Chapter 13 repayment, triggering an automatic stay<\/span> to halt creditor actions like foreclosure<\/span>. Specific state exemptions help protect essential personal property<\/span>, vehicles, and home equity throughout the legal process.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Bankruptcy helps people address often overwhelming debt. While your home may be sold to pay off creditors, that\u2019s not usually the case. A bankruptcy trustee<\/span> may order the sale of your home and other property to pay off your debt, but there\u2019s no guarantee it will happen. Maine<\/span> offers debtors \u201cbankruptcy exemptions\u201d that help protect the equity in their primary residence, motor vehicle, and other personal property<\/span>.<\/p>\n

This article explains how these exemptions work and how they can help protect your property during the bankruptcy process<\/span>. You\u2019ll learn the specific exemption limits for items like your house, personal property<\/span>, and other assets.<\/p>\n

Whether you plan to file Chapter 7\u00a0or\u00a0pursue a reorganization<\/span> bankruptcy, it\u2019s a good idea to consult a Maine<\/span> bankruptcy attorney<\/span><\/a>. Discussing your Chapter 7 or\u00a0Chapter 13 case<\/span>\u00a0with a skilled lawyer familiar with the\u00a0bankruptcy laws<\/span>\u00a0in the\u00a0district of <\/span>Maine<\/span>\u00a0can ensure you receive all of the protections you\u2019re entitled to.<\/p>\n

Maine<\/span> Bankruptcy Law<\/span><\/h2>\n

Maine<\/span>\u00a0bankruptcy laws<\/span>\u00a0are designed to protect you as much as possible during a filing. Understanding how the\u00a0bankruptcy process<\/span>\u00a0works and what to expect is important.<\/p>\n

Bankruptcy 101<\/h3>\n

Deciding to file bankruptcy isn\u2019t easy. Opting for a bankruptcy case<\/span> is stressful, and you can\u2019t be certain which of your assets you\u2019ll be able to keep. The two most common types of bankruptcy<\/span> are Chapter 7<\/a> and Chapter 13<\/a>. A Chapter 7 <\/span>bankruptcy<\/span> case<\/span> is often called a liquidation<\/span> bankruptcy. You include all your debts with the intention of having the\u00a0bankruptcy judge<\/span>\u00a0discharge them.<\/p>\n

Once your Chapter 7 bankruptcy<\/span> is complete, you\u2019ll no longer owe money to the creditors you included in your bankruptcy petition<\/span>. You\u2019ll get a fresh start<\/span>, though it will negatively affect your credit rating. Within a year or two, you should be able to slowly build new debt.<\/p>\n

A Chapter 13 bankruptcy<\/span> is a different undertaking. Chapter 13 <\/span>bankruptcy<\/span> case<\/span> is a reorganization<\/span> bankruptcy. Instead of discharging your secured and unsecured debts<\/span>, a Chapter 13 bankruptcy<\/span> involves a three-to-five-year repayment plan<\/span>.<\/p>\n

Once you file your Chapter 13 petition, your bankruptcy trustee<\/span> will review your debts and assets to confirm that you meet the eligibility requirements for Chapter 13. You\u2019ll create a repayment plan<\/span> for your creditors, who may object. If the judge believes your repayment plan<\/span> is fair and that you can afford the monthly payments, it\u2019s likely to be approved. Once this happens, you will start making monthly payments to the trustee, who will then disburse them amongst your secured and unsecured creditors.<\/p>\n

Chapter 7 <\/span>Bankruptcy<\/span> Proceedings<\/span><\/h3>\n

The bankruptcy process<\/span> is different for Chapter 7 and Chapter 13 cases<\/span>. Each has a different goal. Let\u2019s start with Chapter 7.<\/p>\n

You must take the appropriate steps to file your Chapter 7 bankruptcy<\/span>. If you don\u2019t file the correct paperwork, the court will reject your petition, and you\u2019ll have to resubmit your petition. Unless you\u2019re familiar with bankruptcy law<\/span>, speaking with a Maine<\/span> bankruptcy lawyer<\/span><\/a> before you file anything with the court is a good idea.<\/p>\n

The filing fee<\/span> for a Chapter 7 in Maine<\/span> is $338. If you make less than 150% of the poverty line, you can request a fee waiver.<\/p>\n

One immediate benefit of filing bankruptcy is that the automatic stay<\/span> kicks in when you file your bankruptcy petition<\/span>. The automatic stay<\/span> serves as a grace period during which lenders<\/span> cannot pursue debt collection efforts or threaten foreclosure<\/span> or repossession.<\/p>\n

Under Section 362 of the U.S. Bankruptcy Code<\/span>, the automatic stay<\/span> immediately puts a stop to adverse actions such as:<\/p>\n