Maine Bankruptcy Guide

Maine Bankruptcy Overview

Maine offers strong bankruptcy protections including a homestead exemption of up to $47,500 (or $95,000 for those 60 or older, or disabled individuals and their dependents) and a generous $7,500 vehicle exemption. Understanding Maine's specific exemption options and requirements is essential for protecting your assets during bankruptcy proceedings.

One significant advantage Maine offers is the choice between state exemptions and federal bankruptcy exemptions—you can select whichever set of exemptions better protects your property. This guide covers everything you need to know about filing Chapter 7 or Chapter 13 bankruptcy in Maine, including median income thresholds, exemption limits, and court locations.

2026 Maine Median Income for Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy in Maine, your household income must generally be at or below the state median income for your household size. If your income exceeds these thresholds, you may still qualify through the means test or may need to file Chapter 13 instead.

Maine Bankruptcy Exemptions: State vs. Federal

Maine is one of the states that allows you to choose between Maine state exemptions or federal bankruptcy exemptions. You cannot mix and match—you must choose one system or the other. Most Maine filers choose the system that better protects their specific assets.

Maine State Exemptions

Maine state exemptions provide generous protection, particularly for seniors, disabled individuals, and vehicle owners.

Maine Homestead Exemption (State)

Up to $47,500 (or $95,000 for those 60 or older, or disabled individuals and their dependents).

Maine's homestead exemption protects equity in your primary residence, with enhanced protection for vulnerable populations:

• Standard Exemption: $47,500 for those under age 60 and not disabled
• Enhanced Exemption: $95,000 for individuals who are 60 or older, or disabled (including dependents of disabled individuals)

The homestead exemption applies to houses, condominiums, mobile homes, and any dwelling you use as your principal residence.

Maine Vehicle Exemption (State)

Up to $7,500 in value.

Maine offers one of the most generous vehicle exemptions in the nation at $7,500 of equity in one motor vehicle. This is equity—meaning the vehicle's fair market value minus what you owe on any car loans. This exemption is significantly higher than the federal vehicle exemption of $4,450.

Maine Personal Property Exemptions (State)

Maine provides specific exemptions for various types of personal property:

• Household Goods and Furnishings: Up to $200 per item for household furnishings, goods, clothing, appliances, books, crops, musical instruments, and animals
• Jewelry: Up to $750 total for jewelry (limited to $200 per item)
• Lost Earnings Payments: Up to $20,475 for personal injury recoveries (not including pain and suffering or pecuniary loss)
• Tax-Exempt Retirement Accounts: Unlimited protection for IRAs (subject to federal limits around $1.5 million), 401(k)s, pensions, and other qualified retirement plans
• Life Insurance: Up to $4,000 cash value; unlimited proceeds if beneficiary is spouse, child, or dependent
• Tools of Trade: Up to $7,500 for books, materials, stock, supplies, equipment, and other tools used in your occupation
• Health Aids: Unlimited protection for prescribed health aids
• Burial Plot: Up to $15,000 for one burial plot
• Wildcard Exemption: Up to $400 for any property

Maine Wage and Income Exemptions (State)

• Wages: 75% of disposable weekly earnings or 40 times the federal minimum wage per week (whichever is greater) is protected from garnishment
• Social Security Benefits: Unlimited protection
• Veterans Benefits: Unlimited protection
• Unemployment Benefits: Unlimited protection
• Workers' Compensation: Unlimited protection
• Disability Benefits: Unlimited protection
• Public Assistance: Unlimited protection for state assistance benefits

Federal Bankruptcy Exemptions (Alternative)

Instead of using Maine state exemptions, you can elect to use the federal bankruptcy exemptions.

Federal Homestead Exemption

Up to $27,900 ($55,800 for married couples filing jointly).

The federal homestead exemption is lower than Maine's standard exemption ($47,500) and significantly lower than the enhanced exemption for those 60+ or disabled ($95,000). If you own a home with significant equity, Maine state exemptions are generally better.

Federal Vehicle Exemption

Up to $4,450 in value.

The federal vehicle exemption ($4,450) is considerably lower than Maine's $7,500 state exemption. For vehicle owners, Maine state exemptions provide much better protection.

Federal Wildcard Exemption

Up to $1,475, plus up to $13,950 of any unused homestead exemption.

The federal wildcard can be powerful for renters or those with minimal home equity. If you don't use the full federal homestead exemption, you can apply up to $13,950 of the unused portion to any property. Combined with the base $1,475 wildcard, you could protect up to $15,425 in personal property.

Other Federal Exemptions

• Household Goods: Up to $700 per item, $14,875 total
• Jewelry: Up to $1,875 (higher than Maine's $750)
• Tools of Trade: Up to $2,800 (lower than Maine's $7,500)
• Retirement Accounts: Unlimited for most qualified plans

Maine Bankruptcy Court

Maine has a single federal bankruptcy court district that covers the entire state. The U.S. Bankruptcy Court for the District of Maine has courthouses in multiple cities to serve residents throughout the state.

District of Maine Court Locations

The District of Maine has three courthouse locations:

• Portland: 537 Congress Street, Portland, ME 04101 (Main Courthouse)
• Bangor: 202 Harlow Street, Bangor, ME 04401
• Auburn: 156 Robert C. Hall Federal Building, Auburn, ME 04210

Cost of Filing Bankruptcy in Maine

The total cost of filing bankruptcy in Maine includes both court filing fees and attorney fees. Here's what to expect:

Court Filing Fees (2026)

• Chapter 7: $338
• Chapter 13: $313

These fees are set by federal law and are the same nationwide. In Chapter 7, you may be able to request a fee waiver if your income is below 150% of the federal poverty line, or you may request to pay the filing fee in installments over 120 days.

Attorney Fees in Maine

Attorney fees for bankruptcy in Maine vary by location, case complexity, and the attorney's experience. Here are typical ranges by city:

• Portland: $1,100 - $1,800 for Chapter 7; $2,800 - $4,100 for Chapter 13
• Lewiston: $1,000 - $1,700 for Chapter 7; $2,700 - $3,900 for Chapter 13
• Bangor: $1,000 - $1,700 for Chapter 7; $2,700 - $3,900 for Chapter 13
• South Portland: $1,100 - $1,800 for Chapter 7; $2,800 - $4,100 for Chapter 13
• Auburn: $1,000 - $1,600 for Chapter 7; $2,600 - $3,800 for Chapter 13
• Augusta: $1,000 - $1,600 for Chapter 7; $2,600 - $3,800 for Chapter 13

Chapter 13 attorney fees are typically paid through your repayment plan over 3-5 years, making bankruptcy more accessible even if you cannot afford the full fee upfront. Many Chapter 7 attorneys also offer payment plans for their fees.

Maine-Specific Bankruptcy Considerations

Enhanced Protection for Seniors and Disabled Individuals

Maine's doubled homestead exemption ($95,000 vs. $47,500) for those 60 or older or disabled individuals provides significant additional protection for vulnerable populations. This recognizes that seniors and disabled individuals may have limited ability to recover financially after bankruptcy and need greater asset protection.

Seasonal and Tourism Economy

Maine has a significant seasonal economy, particularly in coastal areas, ski resorts, and tourism regions. If you work in seasonal industries:

• Seasonal income fluctuations are accounted for in the means test (using a 6-month average)
• Chapter 13 repayment plans can be structured to account for seasonal income variations
• Off-season filing may be strategically advantageous if your income is lower during certain months

Fishing and Lobstering Industry

Maine's fishing and lobstering industries are significant parts of the state's economy. For commercial fishermen and lobstermen:

• Fishing boats, lobster traps, and related equipment can be protected under the $7,500 tools of trade exemption
• Commercial fishing licenses may have additional protections
• Seasonal income variations can be accounted for in bankruptcy filings

Rural Property and Land

Maine has significant rural areas with lower property values. The homestead exemption applies regardless of acreage, based solely on dollar value. This means even properties with substantial land can be fully protected if the equity doesn't exceed $47,500 (or $95,000 for qualifying individuals).

Maine Bankruptcy FAQs

Should I use Maine state exemptions or federal exemptions?

The choice depends on your specific assets. Use Maine state exemptions if: you're 60+ or disabled with home equity up to $95,000, you own a vehicle worth more than $4,450, you have significant tools or equipment ($7,500 protection), or you own a home with equity between $27,900 and $47,500. Use federal exemptions if: you're a renter with diverse personal property needs or you can benefit from the larger federal wildcard. For most Maine homeowners and vehicle owners, Maine state exemptions are the better choice.

How long does Chapter 7 bankruptcy take in Maine?

A typical Chapter 7 bankruptcy case in Maine takes about 4-6 months from filing to discharge. The 341 Meeting of Creditors usually occurs 30-45 days after filing, and the discharge is typically granted 60-90 days after the meeting, assuming no complications or objections arise.

Can I keep my home in Maine bankruptcy if I'm 60 or older?

Yes, if your home equity doesn't exceed $95,000 (using Maine state exemptions). You must continue making mortgage payments if you have a home loan, and you must have owned the property for at least 1,215 days to claim the full exemption. If you're behind on mortgage payments, Chapter 13 may be a better option to catch up while keeping your home.

Can I protect my fishing boat and lobster traps in bankruptcy?

Yes, fishing boats, lobster traps, and related commercial fishing equipment can be protected under Maine's $7,500 tools of trade exemption, as these are tools used in your occupation. If the value exceeds $7,500, you may need to use additional exemptions or consider Chapter 13 to retain all equipment.

What is the enhanced homestead exemption for disabled individuals in Maine?

Maine provides a $95,000 homestead exemption (double the standard $47,500) for disabled individuals and their dependents. To qualify, you must meet the legal definition of disability under relevant state or federal law. This enhanced protection recognizes that disabled individuals may have limited earning capacity and need greater asset protection.

Can I protect my vehicle with $7,000 in equity in Maine?

Yes, absolutely. Maine's vehicle exemption is $7,500 in equity, so a vehicle with $7,000 in equity is fully protected. This is one of the highest vehicle exemptions in the nation and significantly better than the federal $4,450 exemption.

How does seasonal income affect bankruptcy in Maine?

Seasonal income is accounted for in the means test by using a 6-month average of your income. If you work in tourism, fishing, skiing, or other seasonal industries, timing your bankruptcy filing can be strategic. Filing during the off-season when your income is lower may help you qualify for Chapter 7. In Chapter 13, repayment plans can be structured to account for seasonal income variations.

Can I file bankruptcy on my own in Maine without an attorney?

While it's legally possible to file bankruptcy without an attorney (called filing "pro se"), it's generally not recommended. Bankruptcy law is complex, and Maine's choice between state and federal exemptions makes professional guidance valuable. Mistakes can result in losing property you could have protected. Most Maine attorneys offer free or low-cost initial consultations.

How does bankruptcy affect my credit score in Maine?

Bankruptcy will negatively impact your credit score initially, typically dropping it by 130-200 points for those with previously good credit. A Chapter 7 bankruptcy remains on your credit report for 10 years, while Chapter 13 remains for 7 years. Many Maine filers find they can qualify for new credit within 2-3 years after discharge, especially if they practice good credit habits post-bankruptcy.

How much does it cost to file bankruptcy in Maine?

The court filing fee is $338 for Chapter 7 and $313 for Chapter 13. Attorney fees in Maine typically range from $1,000-$1,800 for Chapter 7 and $2,600-$4,100 for Chapter 13, depending on your location and case complexity. Many attorneys offer payment plans, and Chapter 13 attorney fees are usually paid through your repayment plan over time.

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