Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Bankruptcy is a legal process designed to help individuals and businesses manage overwhelming debt and get a fresh financial start. In Maine, as in other states, bankruptcy is governed primarily by federal law, specifically the United States Bankruptcy Code. However, Maine residents must also consider specific state regulations that impact bankruptcy exemptions and procedures. Filing for bankruptcy in Maine typically involves either Chapter 7, which focuses on liquidation, or Chapter 13, which sets up a repayment plan. The type best suited to you depends on your individual circumstances, such as your income, assets, and the type of debts owed.
While it is possible to file for bankruptcy without a lawyer, the complexities of bankruptcy laws often lead individuals to seek legal assistance. Common situations where legal help is invaluable include:
An experienced bankruptcy attorney ensures that paperwork is filed correctly, assets are protected as much as possible, and you understand your rights and obligations throughout the process.
While bankruptcy is largely a matter of federal law, Maine has state-specific rules, especially concerning property exemptions. These exemptions determine what property you can keep after filing for bankruptcy. For example:
Other local factors include specific court procedures, trustee assignments, and the Maine means test, which determines eligibility for Chapter 7 bankruptcy based on your income.
Chapter 7 bankruptcy, also called liquidation bankruptcy, involves selling non-exempt assets to pay creditors and wiping out qualifying debts. Chapter 13 bankruptcy creates a repayment plan to pay off all or part of your debts over three to five years, allowing you to keep more of your property.
Not all debts can be discharged in bankruptcy. Common debts that may not be eliminated include student loans (except in rare cases), certain taxes, child support, alimony, and secured debts unless you give up the collateral.
Bankruptcy can significantly impact your credit score. A Chapter 7 bankruptcy remains on your credit report for up to 10 years, while Chapter 13 is listed for up to 7 years. However, many people see their credit improve in the years following bankruptcy if they maintain good financial habits.
Maine’s exemptions may allow you to keep your home and car up to certain dollar limits, provided you continue making payments if they are secured by a loan or mortgage. A lawyer can help you understand what property you can keep in your specific case.
Yes, you will need to attend a meeting of creditors (also called a 341 meeting), where the trustee and any creditors can ask questions about your finances. You may only need to attend additional hearings if your case is complex or creditors object.
Chapter 7 cases typically last four to six months from filing to discharge. Chapter 13 cases last three to five years due to the repayment plan.
Yes, filing for bankruptcy triggers an automatic stay, which temporarily stops most wage garnishments, foreclosures, and collection activities. However, some actions may resume later depending on the court’s decisions and the type of debt involved.
Yes, but there are waiting periods before you can file again and receive a discharge. The periods vary based on the type of bankruptcy you filed previously and plan to file now.
There are court filing fees (which vary based on the chapter) and potentially attorney fees. Filing fees can sometimes be waived or paid in installments if you meet income requirements.
Yes, married couples can file jointly or separately. A joint filing can simplify the process and may help protect shared property.
If you are seeking more information or assistance, consider reaching out to the following resources:
If you are considering bankruptcy in Maine, begin by collecting detailed information about your income, debts, and assets. If possible, consult with a qualified bankruptcy attorney who knows Maine’s laws and can advise you on the best approach for your unique situation. Attend a required credit counseling session from an approved provider before filing. If you decide to proceed, your lawyer (or you, if self-filing) will prepare your petition and supporting documents for submission to the United States Bankruptcy Court. Throughout the process, stay informed, attend all required meetings, and comply with any court instructions to ensure a successful case resolution and a fresh financial start.
