MAINE BANKRUPTCY LAW

Maine Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Maine Bankruptcy Statistics: In Maine, in 2009, 3,871 bankruptcies were filed. Business bankruptcies accounted for 241 or 6.23% and personal bankruptcies accounted for 3,630 or 93.77% of the total filings.

Maine State Bankruptcy Exemptions

Homestead

The home (“homestead") exemption is limited in value to $35,000 for one person or $70,000 if the debtor is over age 60 or mentally or physically disabled. Sale proceeds are exempt for up to six months after the sale of the property. Maine defines “homestead" to include real property and personal property.

Personal Property

The following expenses or items are exempt in their entirety in Maine:

1. Burial plot (instead of the homestead exemption)
2. Stove or furnace
3. Health aids
4. Lost earnings payments necessary for support
5. Military uniforms, equipment and arms
6. Equipment and tools to grow food
7. Wrongful death recoveries for support

The following expenses or items are exempt up to a specified limit in Maine:

1. Crops, musical instruments, clothes, books, furnishings, household goods and appliances-limited to $200 per item
2. Remainder due on repossessed goods-amount financed is limited to $2,000
3. 6 months worth of food
4. 10 cords of wood, 5 tons of coal, or 1,000 of petroleum for fuel purposes
5. Jewelry-limited to $750
6. 1 wedding ring, 1 engagement ring
7. Motor vehicle limited to $2,500
8. Personal injury damages limited to $12,500 (not including pain and suffering)
9. Fertilizer, feed, and seeds to grow food for 1 season

Pension

The following individuals’ and their survivors’ pension benefits are exempt or partially exempt when filing for bankruptcy in Maine:

1. Legislators
2. Judges
3. State employees

The following pension types are exempt or partially exempt when filing for bankruptcy in Maine:

1. ERISA qualified benefits

Insurance

The following insurance types are entirely or partially exempt when filing for bankruptcy in Maine:

1. Annuity proceeds-$450 per month
2. Disability, health benefits, proceeds, or avails
3. Fraternal benefit society benefits
4. Group health/life policy/proceeds
5. Life, annuity, endowment, or accident policy, avails, or proceeds
6. Life insurance or accrued interest or dividends from a person the debtor depended on, limited to $4,000
7. Unmatured life insurance policy (but nit a credit insurance policy)

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Maine:

1. Workers’ compensation
2. Veterans
3. Unemployment compensation
4. Crime victims’ compensation
5. Social Security
6. AFDC

Tools of the trade

This is a separate exemption. The following items have been considered tools of the trade in the state of Maine:

1. Farm tools needed to harvest crops-1 of each kind of tool
2. Boat for fishing-limited to 5 tons
3. Materials, books, and stock-limited to $5,000

Wages

In Maine, no wages are exempt.

Wildcard: Unused portion of homestead exemption limited to $6,000, books, musical instruments, clothes, household goods, furnishings, appliances, personal recoveries, and tools of the trade. In addition, $400 of any property.

Miscellaneous

The following miscellaneous items are exempt in Maine:

1. Property of a business partnership
2. Alimony
3. Child support

Federal Exemptions: No, debtors are not allowed to take federal exemptions when filing for bankruptcy in Maine.

Maine Bankruptcy Court:

United States Bankruptcy Court, District of Maine