The Maine bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Maine. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Maine you may also use certain federal exemptions in addition to your Maine exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOME STEAD | Real or personal property (including cooperative) used as residence to $12,500, if debtor over age 60 or physically or mentally disaabled, $60,000 (joint debtors may double) |
14-4422(1) |
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INSURANCE | Annuity proceeds to $450 per month | 24-A-2431 |
| Disability or health proceeds, benefits or avails | 14-4422(13)A & C 24-A-2429 |
| Fraternal benefit society benefits | 24-A-4118 |
| Group health or life policy or proceeds | 24-A-2430 |
| Life, endowment, annuity or accident policy, proceeds or avails | 14-44229(14)C, 24-A-2428 |
| Life insurance policy, interest, loan value or accrued dividends for policy from person you depended on, to $4,000 | 14-4422(11) |
| Unmatured life insurance policy, except credit insurance policy | 14-4422(10) |
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MISC. | Alimony and child support needed for support | 14-4422(13)D |
| Property of business partnership | 31-305 |
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PENSIONS | ERISA-qualified benefits | 14-4422(13)E |
| Judges | 4-1203 |
| Legislators | 3-703 |
| State employees | 5-17054 |
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PERSONAL PROPERTY | Animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances to $200 per lien | 14-4422(3) |
| Balance due on repossessed goods; total amount financed can’t exceed $2,000 | 9-A-5-103 |
| Burial plot in lieu of homestead exemption | 14-4422(1) |
| Cooking stove; furnaces and stoves for heat | 14-4422(6)A & B |
| Food to last 6 months | 14-4422(7)A |
| Fuel not to exceed 10 cords of wood, 5 tons of coal or 1,000 of petroleum | 14-4422(6)C |
| Health aids | 14-4422(12) |
| Jewelry to $750; no limit for 1 wedding and 1 engagement ring | 14-4422(4) |
| Lost earnings payments needed for support | 14-4422(14)E |
| Military clothes, arms and equipment | 37-B-262 |
| Motor vehicle to $2,500 | 14-4422(2) |
| Personal injury recoveries to $12,500, not to include pain and suffering | 14-4422(14)D |
| Seeds, fertilizers and feed to raise and harvest food for 1 season | 14-4422(7)B |
| Tools and equipment to raise and harvest food | 14-4422(7)C |
| Wrongful death recoveries needed for support | 14-4422(14)B |
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PUBLIC BENEFITS | AFDC | 22-3753 |
| Crime victims’ compensation | 14-4422(14)A |
| Social Security | 14-4422(13)A |
| Unemployment compensation | 14-4422(13)A & C |
| Veterans’ benefits | 14-4422(13)B |
| Workers’ compensation | 39-A-106 |
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TOOLS OF TRADE | Boat not exceeding 5 tons used in commercial fishing | 14-4422(9) |
| Books, materials and stock to $5,000 | 14-4422(5) |
| 1 of each type of farm implement needed to harvest and raise crops | 14-4422(8) |
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WAGES | NONE |
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WILD CARD | Unused portion of homestead exemption to $6,000 of animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances, tools of the trade and personal recoveries |
14-4422(15) |
| $400 of any property | 14-4422(15) |
For more information on filing bankruptcy in Maine explore Maine Bankruptcy Law.
