{"id":373742,"date":"2016-03-31T21:35:26","date_gmt":"2016-04-01T02:35:26","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/maine-law\/maine-homestead-laws.html"},"modified":"2026-08-17T08:45:26","modified_gmt":"2026-08-17T13:45:26","slug":"maine-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/maine-law\/maine-homestead-laws.html","title":{"rendered":"Maine Homestead Laws"},"content":{"rendered":"\n
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Maine Homestead Laws<\/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 homestead laws protect a homeowner<\/span>‘s primary residence<\/span> equity from creditors during bankruptcy. Eligible residents can shield up to $80,000 in home equity (or $160,000 for individuals with minor dependents or disabilities) from court liquidation. This legal exemption covers qualifying permanent properties such as single-family homes, condominiums, and mobile homes<\/span>.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Filing for bankruptcy is a life-changing event, but it doesn\u2019t always mean that you\u2019ll lose your home. While it\u2019s a possibility, programs like Maine\u2019s <\/span>homestead exemption<\/span> can help keep you in your house.<\/p>\n

In general, the homestead exemption<\/span> protects some or all of the equity you have in your home. Depending on the exemption amount<\/span>, it can help you stay in your primary residence<\/span>. Under a Chapter 7 bankruptcy<\/a>, the trustee may sell your house to pay your creditors. Even in a Chapter 13<\/a>, your home may be subject to sale if you cannot afford your monthly payments.<\/p>\n

This article examines and explains the homestead exemption<\/span> laws in the state of Maine<\/span>. It also discusses how to claim the homestead exemption<\/span> and use it to protect your primary residence<\/span>. If you\u2019re a Maine resident<\/span> and are considering bankruptcy, it\u2019s a good idea to speak with a local bankruptcy attorney<\/a> before filing. They\u2019ll review your case and help you determine if you can protect your home in bankruptcy.<\/p>\n

Overview of the Homestead Exemption<\/span><\/h2>\n

The purpose of the homestead exemption<\/span> is to ensure that people who file bankruptcy won\u2019t end up homeless once the court discharges their case. While some homeowners<\/span> can protect their house completely, others may learn that their home is still at risk of sale.<\/p>\n

The homestead exemption<\/span> doesn\u2019t protect your real property<\/span> per se. It covers your equity in the property. If you bought a house six months before you file bankruptcy, your equity in the house may be close to zero. The same is true if you took out a home equity line of credit shortly before filing your Chapter 7 bankruptcy case.<\/p>\n

If you have a lot of equity in your home, your bankruptcy trustee and creditors will likely view it as a possible liquid asset. The more equity you have, the more your creditors will want the trustee to sell the property and use the proceeds to pay them.<\/p>\n

Here\u2019s an example: You have a home with a total current value of $300,000. Over the years, you\u2019ve accrued $200,000 in equity. Depending on where you live, the homestead exemption<\/span> may be much lower than the amount of equity. If it\u2019s only $30,000, the rest of your equity ($170,000) will be at risk. The trustee may decide to sell the property for $300,000, pay off your creditors, and give you whatever is left after they pay your mortgage in full. We\u2019ll examine exactly how much protection to expect from Maine later in this article.<\/p>\n

There are important steps that must be taken during a bankruptcy, such as declaring your intent to claim the homestead exemption<\/span> when you file. Unless you\u2019re well-versed in bankruptcy codes, consider speaking with a Maine bankruptcy attorney<\/a> before filing your case.<\/p>\n

Homestead Exemption<\/span> in Maine<\/h2>\n

Like most other states, Maine offers debtors certain exemptions when they file bankruptcy. One of the most important exemptions is the homestead exemption<\/span>. In some states, debtors can choose between their state bankruptcy exemptions and the federal exemptions.<\/p>\n

Maine is an \u201copt-out\u201d state, which means that debtors can only use the Maine <\/span>homestead exemption<\/span>. This is preferable, as the homestead <\/span>exemption<\/span> amount<\/span> in Maine is much higher than the federal exemption.<\/p>\n

Maine <\/span>Homestead Exemption<\/span> Limits<\/h2>\n

According to M.R.S<\/span>. Title 14 Section 4422<\/a>, the homestead exemption<\/span> for an individual who files bankruptcy in the State of Maine<\/span> is $80,000. This amount increases to $160,000 for debtors with minor dependents and for filers with a disability. A married couple who file a joint bankruptcy and own the property together may claim twice the homestead exemption<\/span> limit.<\/p>\n

The homestead exemption<\/span> doesn’t protect you from secured creditors, such as your mortgage company. If you don’t make your mortgage payments on time, your lender can foreclose and sell your house at auction to pay off the loan, even if you claim the homestead exemption<\/span>.<\/p>\n

What Types of Property Are Eligible for the Homestead Exemption<\/span>?<\/h2>\n

There are certain rules that apply when a debtor wishes to claim the homestead exemption<\/span>. You won\u2019t be able to apply the exemption if you don\u2019t meet the eligibility requirements. This can leave your house vulnerable to sale.<\/p>\n

Some of the requirements for Maine\u2019s <\/span>homestead exemption<\/span> include:<\/p>\n