Maine Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Maine — homestead, personal property, vehicle, wage, and retirement exemptions.
Maine's exemption system
Maine requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Maine exemption amounts below control what you can protect.
Key Maine exemptions
Homestead §14-4422(1)
$80,000 ($160,000 if debtor or dependent is age 60+ or disabled) (adjusted periodically). The state homestead exemption applies to real or personal property that the debtor or a dependent uses as a residence. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §14-4422(3)
$500 per item in household furnishings, goods, clothing, appliances, and musical instruments. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §14-4422(2)
$5,000 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §9-A-5-105
75% of disposable earnings (federal minimum wage standard), or amount exceeding 40× the state minimum hourly wage. This applies to wages already earned but not yet paid at the time of filing.
Wildcard §14-4422(14)
$400 (any property) plus unused homestead exemption up to $8,000. A wildcard exemption can be applied to any property not fully covered by other exemptions.
Retirement accounts §14-4422(13)
ERISA-qualified plans, IRAs, Maine Public Employees Retirement System (MainePERS), and deferred compensation plans are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §14-4422(4)
$5,000 in tools, books, and implements of trade. This protects the equipment you need to earn a living.
Maine exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Maine limit | $80,000 ($160,000 if debtor or dependent is age 60+ or disabled) (adjusted periodically) §14-4422(1) | $500 per item in household furnishings, goods, clothing, appliances, and musical instruments §14-4422(3) | $400 (any property) plus unused homestead exemption up to $8,000 §14-4422(14) |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
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Related guides
- $80,000 ($160,000 if debtor or dependent is age 60+ or disabled) (adjusted periodically)
- The state homestead exemption applies to real or personal property that the debtor or a dependent uses as a residence.
- $500 per item in household furnishings, goods, clothing, appliances, and musical instruments
- 75% of disposable earnings (federal minimum wage standard), or amount exceeding 40× the state minimum hourly wage