In the state of Maine, regulations for property exemptions have been established for protecting property while filing Chapter 7 of the bankruptcy code. Only the state’s exemptions and their respective amounts may be used when filing for bankruptcy and no federal exemptions are applicable in Maine. Having a clear knowledge of Maine’s state specific bankruptcy exemptions is crucial if you are hoping to maintain any of your assets through the bankruptcy process.
How to Keep Your Car
Retaining a form of transportation while filing a Chapter 7 bankruptcy can be very important and is one of the more serious concerns presented by many people thinking about bankruptcy. It will probably not be likely for a luxury car to be retained, but a less valuable motor vehicle can be kept.
- A motor vehicle with a value of up to $2,500 is exempt from liquidation
- A wild card amount may also be applied for up to $400 for any property, including a motor vehicle
How to Keep Your Home
- Primary residence may be retained up to a value of $12,500 in normal circumstances.
- In a case where the person filing bankruptcy is mentally or physically disabled, the primary residence may be exempt up to $60,000
- In a joint bankruptcy filing including husband and wife, the exemption amount may be doubled
- Wild card amount valued up to $400 can be added to any property exemptions
Filing Schedule C of a Bankruptcy Petition
When you go to file for bankruptcy, it is important that you fill out a schedule C form. The schedule C is the form where you will be able to list all of the valuable assets that you would like to be exempt from the liquidation of a Chapter 7 bankruptcy. On the form, there will be a section where descriptions of the property must be written, as well as the statute number that those properties fall under for exemption. If the form is not filled out correctly, the property listed will not be exempt, so making sure it is done right is critical for the protection of your assets.
Talk to a Bankruptcy Lawyer First
Because of how much is at stake when a Chapter 7 bankruptcy is being filed, it is a good idea to consult with an experience bankruptcy attorney. The attorney will be able to assist you in filling out all the necessary forms, including the schedule C, and help ensure that your assets are protected under the bankruptcy exemption laws in Maine.
