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How to File for Bankruptcy in Maine
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Maine may be 41st in the nation in bankruptcy filings, but there are still thousands of consumers facing financial crisis and considering filing bankruptcy. For them, it is crucial to learn the requirements, benefits, and consequences of filing. While a consumer can complete the process on their own, enlisting the services of a bankruptcy attorney may help them find additional options and financial benefits, as well as protect them from aggressive creditors and bankruptcy trustees.
Finding a Bankruptcy Attorney
It is important to find a bankruptcy attorney who is committed to the needs and rights of their client. That takes a bit of research and one-on-one interviews with several prospective lawyers. They can find possible candidates on reliable legal websites, state bar association recommendations, and from friends who have found an attorney they would recommend.
Bankruptcy Options
Among the first tasks a bankruptcy attorney and their client must complete is determining if bankruptcy is appropriate, and which option they should choose.
- Chapter 7 may be the right choice for those filing a “no asset” bankruptcy so that no property will be liquidated to pay creditors before most unsecured debt is discharged, or erased.
- Chapter 13 is a better choice for those with property they wish to protect and with a regular monthly income that can be used to make reduced debt payments. The Chapter 13 process helps them reorganize and satisfy all creditors within a three- to five-year period.
Maine Exemptions
The vast majority (85%) of Maine filers choose Chapter 7 bankruptcy. For them, it is important to understand what type of property is exempt from liquidation under state statues, as federal exemptions are not available in this state.
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Homestead |
Up to $47,500 (or $90,000 for those over 60, disabled, or supporting a resident minor dependent |
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Personal Property |
Motor vehicles up to $5,000; household goods, furnishings, food and fuel, clothing, crops, farming tools and equipment up to $200 each; wrongful death recoveries; personal injury recoveries up to $12,500; $400 of any property; burial plots in lieu of homestead exemption; arms, clothes, and equipment for military personnel; balance on repossessed property financed to $2,000 |
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Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; legislators; judges; state employees; ERISA-qualified benefits |
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Public Benefits |
Unemployment; veterans’ benefits; Social Security; crime victims’ compensation; earned income and child tax credits; federal, state, or local public assistance; worker’s comp |
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Tools of the Trade |
Up to $5,000 of books, materials, and stock; 1 each of farm implements |
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Insurance |
Some forms of life insurance or proceeds; disability or health insurance proceeds, avails or benefits; group life or health; fraternal benefits; death benefits for police, fire, or EMS personnel killed in the line of duty |
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Miscellaneous |
Unused homestead up to $6,000, unused tools of trade, personal injury recoveries, or personal property |
Filing the Petition
Once the bankruptcy options are chosen, the debtor must undergo credit counselling before their lawyer can file the bankruptcy petition with the court, which then puts a temporary stay on all debt collections. The bankruptcy trustee takes charge of processing the petition and organizes a 341 meeting with creditors to have the filer answer any questions. Once complete, and if there are no irregularities, the debtor is free to rebuild their financial status.
This article is provided for informational purposes only. If you need legal advice or representation,
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Popular Topics
Chapter 7 Bankruptcy - Learn about the most common type of Bankruptcy.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
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