Bankruptcy Exemptions in Maine
What property you can keep in bankruptcy in Maine: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Maine filers must use Maine (and federal non-bankruptcy) exemptions: a debtor may exempt "only that property exempt under 11 United States Code, Section 522(b)(3)(A) and (B)," with a special rule letting debtors eligible for the higher age-60+/disability residence exemption claim that… 14 M.R.S. § 4426 (as amended by PL 2025, c. 655)
| State or federal exemptions | Maine filers must use Maine (and federal non-bankruptcy) exemptions: a debtor may exempt "only that property exempt under 11 United States Code, Section 522(b)(3)(A) and (B)," with a special rule letting debtors eligible for the higher age-60+/disability residence exemption claim that amount. |
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| Homestead exemption | Statutory amounts: $80,000; $160,000 if minor dependents live with the debtor; $160,000 if the debtor or a dependent is 60 or older or disabled (joint-ownership limits apply). As adjusted for inflation by the Supreme Judicial Court: $94,300, $188,550, and $282,800 (the adjusted figure for the $240,000 joint-owner cap). The exemption does not apply to judgments for torts beyond ordinary negligence, and a principal residence is fully exempt from execution for medical debt. Adjusted amounts are from Supreme Judicial Court Administrative Order JB-24-02 (effective October 24, 2024), which applies the 3-year inflation adjustment required by 14 M.R.S. § 4422: https://courts.maine.gov/adminorders/jb-24-02.pdf No acreage limit is stated. |
| Car exemption | One motor vehicle: statute $10,000, adjusted to $11,800. Adjusted amounts are from Supreme Judicial Court Administrative Order JB-24-02 (effective October 24, 2024), which applies the 3-year inflation adjustment required by 14 M.R.S. § 4422: https://courts.maine.gov/adminorders/jb-24-02.pdf |
| Wildcard exemption | Any property: statute $500, adjusted to $600; plus up to $10,500 of unused residence exemption (adjusted to $12,400), usable only for household goods, tools of the trade and certain personal injury payments (subsections 3, 5 and 14(D)). Separately, cash and bank accounts up to $3,000 (adjusted to $3,550). Adjusted amounts are from Supreme Judicial Court Administrative Order JB-24-02 (effective October 24, 2024), which applies the 3-year inflation adjustment required by 14 M.R.S. § 4422: https://courts.maine.gov/adminorders/jb-24-02.pdf |
| Retirement accounts | Funds in accounts exempt from taxation under Internal Revenue Code sections 401, 403, 408, 408A, 414, 457 or 501(a), up to an aggregate $1,054,550 by statute (adjusted to $1,242,600). Contributions made within 120 days before a bankruptcy filing and amounts needed for child or spousal support are not exempt. Pension and similar plan payments are also exempt to the extent reasonably necessary for support. Adjusted amounts are from Supreme Judicial Court Administrative Order JB-24-02 (effective October 24, 2024), which applies the 3-year inflation adjustment required by 14 M.R.S. § 4422: https://courts.maine.gov/adminorders/jb-24-02.pdf |
| Wages | A court installment (wage) order may not exceed the least of 25% of the debtor's weekly disposable earnings plus exempt income, the amount by which that sum exceeds 40 times the higher of the federal or Maine minimum hourly wage, or total disposable earnings. This is the post-judgment collection limit; § 4422 has no separate exemption for earned but unpaid wages. Source: 14 M.R.S. § 3126-A(3) |
More Maine bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Maine?
Maine filers must use Maine (and federal non-bankruptcy) exemptions: a debtor may exempt "only that property exempt under 11 United States Code, Section 522(b)(3)(A) and (B)," with a special rule letting debtors eligible for the higher age-60+/disability residence exemption claim that amount.
How much home equity is protected in bankruptcy in Maine?
Statutory amounts: $80,000; $160,000 if minor dependents live with the debtor; $160,000 if the debtor or a dependent is 60 or older or disabled (joint-ownership limits apply). As adjusted for inflation by the Supreme Judicial Court: $94,300, $188,550, and $282,800 (the adjusted figure for the $240,000 joint-owner cap). The exemption does not apply to judgments for torts beyond ordinary negligence, and a principal residence is fully exempt from execution for medical debt.
Can I keep my car in bankruptcy in Maine?
One motor vehicle: statute $10,000, adjusted to $11,800.
Does Maine have a wildcard exemption?
Any property: statute $500, adjusted to $600; plus up to $10,500 of unused residence exemption (adjusted to $12,400), usable only for household goods, tools of the trade and certain personal injury payments (subsections 3, 5 and 14(D)). Separately, cash and bank accounts up to $3,000 (adjusted to $3,550).
Are retirement accounts protected in bankruptcy in Maine?
Funds in accounts exempt from taxation under Internal Revenue Code sections 401, 403, 408, 408A, 414, 457 or 501(a), up to an aggregate $1,054,550 by statute (adjusted to $1,242,600). Contributions made within 120 days before a bankruptcy filing and amounts needed for child or spousal support are not exempt. Pension and similar plan payments are also exempt to the extent reasonably necessary for support.
Are wages protected in bankruptcy in Maine?
A court installment (wage) order may not exceed the least of 25% of the debtor's weekly disposable earnings plus exempt income, the amount by which that sum exceeds 40 times the higher of the federal or Maine minimum hourly wage, or total disposable earnings.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.