What is exempt from bankruptcy in Maine?

There are a variety of assets that are exempt from bankruptcy in Maine. When an asset is exempt from bankruptcy you are allowed to keep it and not have it sold or liquidated in order to help pay your debts. For many debtors planning to file bankruptcy, this is the most critical part of their bankruptcy filing.

Maine Exemptions

In Maine you are allowed to exempt your home from bankruptcy if you are able to continue to make your mortgage payments and you have less than $47,500 equity in your primary residence. If you are over the age of 60 or meet the definition of disabled then you are allowed to exempt up to $95,000 in your home's equity.

You can exempt a car up to a value of $5,000. When it comes to clothing, furniture, and appliances you are allowed to keep those items that are not worth than $200 each. You can also exempt up to $5,000 worth of tools and books that you need for your job or business.

Any food that you have (up to a six month supply total) is exempt from bankruptcy. If you are a farmer by trade, you can keep one season's worth of seed, the farm tools and implements needed for the planting, tending and harvesting crops. If you own farm equipment, you can protect one of each kind of tool from your bankruptcy.

In order to keep those assets which Maine allows you to exempt you need to accurately complete and file a Schedule C. This document itemizes the assets you own which are exempt from liquidation.

Maine bankruptcy exemptions can get complicated. If you think you are going to have to declare bankruptcy it is important to speak with an attorney as soon as possible. He or she can point you to local credit counseling and help you understand the ramificaitons of filing bankruptcy. You will increase your odds of success if you enlist the help of an experienced bankruptcy attorney as early in the process as possible.