Maine
Bankruptcy in Maine (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 16, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 16, 2026. · 5 primary sources cited on this page. How we verify our legal content
Filing bankruptcy in Maine means following one set of property rules: Maine has opted out of the federal bankruptcy exemptions, so most filers must use Maine's own exemption statute, 14 M.R.S. 4422. Bankruptcy itself is federal, but the exemptions that decide what you keep, and the means-test income that decides which chapter you can use, are state-specific. The figures below are current as of mid-2026, and you should confirm the latest amounts before relying on them.
This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.
Does Maine use state or federal bankruptcy exemptions?
Maine has opted out of the federal exemption system. Under 14 M.R.S. 4426, a debtor domiciled in Maine may claim only the exemptions allowed under 11 U.S.C. 522(b)(3), which means Maine's own exemptions in 14 M.R.S. 4422 plus the federal nonbankruptcy exemptions. The menu of federal bankruptcy exemptions in 11 U.S.C. 522(d) is not available in Maine. About two-thirds of states have opted out in this way.
The federal nonbankruptcy exemptions that survive include things like Social Security benefits and certain veterans' and federal-employee benefits, under 11 U.S.C. 522(b)(3)(A) and (B) only; 14 M.R.S. 4426 does not preserve the retirement-funds category in 522(b)(3)(C) for Maine filers. Retirement accounts are still protected, but through Maine's own exemption for tax-qualified retirement funds in 14 M.R.S. 4422(13-A), up to $1,242,600 in aggregate value under the SJC’s CPI adjustment order effective October 24, 2024. Married couples filing jointly can generally each claim a full set of the Maine exemptions, which often doubles the protected amounts.
Maine homestead exemption
Maine's homestead exemption is the headline protection for most filers. Under 14 M.R.S. 4422(1), the standard exemption covers up to $94,300 of equity in a residence the debtor uses as a home. The amount increases to $188,550 if the debtor is 60 or older, is physically or mentally disabled, or has minor dependents living in the home. These figures reflect the inflation adjustment that took effect October 24, 2024 under Maine Supreme Judicial Court Administrative Order JB-24-02, which adjusts the statutory amounts every three years, so a further adjustment is expected around 2027.
Homestead protection covers equity, not the full value of the home. If a residence is worth far more than the mortgage plus the exemption, a Chapter 7 trustee could have an interest in the non-exempt equity, which is one reason many homeowners with substantial equity look at Chapter 13 instead.
Vehicle, wildcard, and personal-property exemptions
Beyond the home, Maine protects a range of everyday property under 14 M.R.S. 4422:
- Motor vehicle: up to $11,800 of equity in one vehicle (subsection 2).
- Household furnishings, goods, clothing, and similar items: up to $600 in any single item (subsection 3).
- Jewelry: up to $1,200, with a separate allowance up to $4,750 for a wedding or engagement ring (subsection 4).
- Tools of the trade: up to $11,200 in implements and professional books (subsection 5).
- Wildcard: a general allowance of up to $600 in any property, whether or not otherwise exempt (subsection 15), plus a separate exemption of up to $3,550 in cash and deposit accounts (subsection 17).
- Unused-homestead spillover: up to $12,400 of any unused homestead exemption, but only as applied to property exempt under subsections 3 and 5 and subsection 14, paragraph D, which means household furnishings and goods, tools of the trade, and payments for personal bodily injury (subsection 16). It cannot be stretched to cover cash, a deposit account, or a second vehicle.
- Retirement accounts: tax-qualified plans are protected up to $1,242,600 in aggregate value under Maine's own exemption in 14 M.R.S. 4422(13-A), not through the federal nonbankruptcy exemptions (14 M.R.S. 4426 limits those to 522(b)(3)(A) and (B)).
These amounts also reflect the 2024 inflation adjustment. Because the figures round and update on a three-year cycle, always confirm the current numbers in the statute before filing.
The Chapter 7 means test in Maine
The means test screens who can file Chapter 7. The first step compares your household's current monthly income, annualized, to the median family income for a Maine household of the same size. If your income is at or below the Maine median, you generally pass and may proceed with Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after July 15, 2026, the Maine median family income is:
| Household size | Maine median annual income |
|---|---|
| 1 | $75,892 |
| 2 | $90,445 |
| 3 | $106,822 |
| 4 | $131,577 |
Add $11,100 for each additional person beyond four. These figures apply to cases filed on or after July 15, 2026 and are unchanged from the table that governed cases filed between April 1 and July 14, 2026. The U.S. Trustee Program revises them periodically, so confirm the current numbers for your filing date.
Chapter 7 vs. Chapter 13 in Maine
Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because Maine's exemptions protect most household property, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.
Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage, because the plan can spread out the missed payments and stop a foreclosure while you catch up.
In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.
Where you file bankruptcy in Maine
Maine bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Maine, the single federal bankruptcy district covering the entire state. The court has locations in Portland and Bangor. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.
What bankruptcy can and cannot do
Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.
Because exemption amounts change and the choice between Chapter 7 and Chapter 13 depends on your full financial picture, many people consult a licensed Maine bankruptcy attorney before filing.
Frequently Asked Questions
Does Maine use state or federal bankruptcy exemptions?
Maine uses state exemptions. It has opted out of the federal bankruptcy exemptions under 14 M.R.S. 4426, so filers domiciled in Maine generally must use the exemptions in 14 M.R.S. 4422, along with the federal nonbankruptcy exemptions under 11 U.S.C. 522(b)(3)(A) and (B), such as Social Security. Retirement accounts are protected separately, through Maine's own exemption in 14 M.R.S. 4422(13-A), not through the federal nonbankruptcy exemptions.
What is the homestead exemption in Maine?
Maine's homestead exemption protects up to $94,300 of equity in a primary residence, increasing to $188,550 for a debtor who is 60 or older, disabled, or has minor dependents. These amounts took effect October 24, 2024 under Supreme Judicial Court Order JB-24-02 and adjust every three years, so confirm the current figure before filing.
What is the Maine median income for the means test?
For cases filed on or after July 15, 2026, the Maine median family income is $75,892 for 1 person, $90,445 for 2, $106,822 for 3, and $131,577 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
Will I lose my house or car if I file bankruptcy in Maine?
Often no. Maine's homestead exemption of up to $94,300 (or $188,550 in certain cases) and its vehicle exemption of up to $11,800 protect equity up to those limits, and most filers keep their home and car as long as they stay current on the related loans. Equity above the exemption can be at risk in Chapter 7.
How much equity can I protect in my car in Maine?
Up to $11,800 of equity in one motor vehicle is exempt under 14 M.R.S. 4422(2). Additional vehicle equity cannot be covered by Maine's unused-homestead spillover, because 14 M.R.S. 4422(16) applies that spillover only to household goods, tools of the trade, and personal bodily-injury payments. The general wildcard in subsection 15 is limited to $600.
Where do I file for bankruptcy in Maine?
All Maine bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Maine, which has locations in Portland and Bangor. You must complete approved credit counseling before filing.
What debts cannot be discharged in a Maine bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.
Does filing bankruptcy stop a foreclosure in Maine?
Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.
Overwhelmed by debt in Maine? Get a free bankruptcy consultation
Bankruptcy can stop foreclosure, wage garnishment, and creditor calls, and which debts you can clear and what property you keep depend on Maine's exemptions. Get a free, confidential consultation with a Maine bankruptcy attorney to understand your options. There is no obligation.
Updates
Corrected the unused-homestead spillover, which does not cover cash or a second vehicle, and updated the Chapter 7 means-test figures to the U.S. Trustee Program table now in force.
Updated the retirement-account exemption to the current CPI-adjusted amount.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Corrected the claim that Maine filers keep retirement accounts through the federal nonbankruptcy exemption in 11 U.S.C. 522(b)(3)(C); 14 M.R.S. 4426 limits Maine filers to 522(b)(3)(A) and (B) only, and retirement funds are instead protected under Maine's own exemption, 14 M.R.S. 4422(13-A).
Corrected the 'Does Maine use state or federal bankruptcy exemptions?' FAQ answer, which still listed tax-qualified retirement accounts as a federal-nonbankruptcy exemption Maine preserves; 14 M.R.S. 4426 limits Maine filers to 11 U.S.C. 522(b)(3)(A) and (B) only, and retirement funds are instead protected through Maine's own exemption at 14 M.R.S. 4422(13-A).
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Maine Revised Statutes, Title 14: COURT PROCEDURE -- CIVIL, Part 5: PROVISIONAL REMEDIES; SECURITY, Chapter 507: ATTACHMENTS
§ 4422Exempt propertyIn forcecited in 2 of our articles
The following property is exempt from attachment and execution, except to the extent that it has been fraudulently conveyed by the debtor: [PL 2021, c. 382, §2 (AMD).] 1. Residence. A debtor's residence. The exemption of a debtor's residence is subject to this subsection. A. Except as provided in paragraph B, the debtor's aggregate interest, not to exceed $80,000 in value, in real or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor, except that if minor dependents of the debtor have their principal place of residence with the debtor, the debtor's aggregate interest may not exceed $160,000 and except that if the debtor's interest is held jointly with any other person or persons, the exemption may not exceed in value the lesser of $80,000 or the product of the debtor's fractional share times $160,000. [PL 2021, c. 382, §2 (AMD).] B.
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at legislature.maine.gov
Cited in 61 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Estate of Whittier (Supreme Judicial Court of Maine 1996, 681 A.2d 1)“…14 M.R.S.A. § 4421 within section 2-405, meant to reference 14 M.R.S.A. § 4422. It is section 4422 that lists all prop…”
- Sanders v. Sanders (Supreme Judicial Court of Maine 1998, 1998 Me. 100)“…nder his disability insurance policy are exempt pursuant to 14 M.R.S.A. § 4422 (Supp.1997). The statute distinguishes…”
- Erik Wuori v. Travis Otis (Supreme Judicial Court of Maine 2020, 226 A.3d 771)“…erefore, was not exempt from attachment and execution. See 14 M.R.S. § 4422(9) (2018). We vacate the judgment.…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Maine Debt Collection Laws: Wage Garnishment, Statute of Limitations, and Repossession
§ 4426Exemptions in bankruptcy proceedingsIn force
Notwithstanding anything to the contrary in 11 United States Code, Section 522(b), a debtor may exempt from property of the debtor's estate under 11 United States Code only that property exempt under 11 United States Code, Section 522(b)(3)(A) and (B), except that any debtor eligible for a residence exemption under section 4422, subsection 1, paragraph A-1 may exempt the amount allowed in that paragraph. [PL 2021, c. 382, §3 (AMD).]
Official text (excerpt) · last checked 2026-07-30 · Read the full text in our law library · Verify at legislature.maine.gov
Cited in 18 court opinions in our collectionLatest citing opinion in our collection: 2019
Opinions citing this section in our collection:
- Petit v. Fessenden (District Court, D. Maine 1995, 182 B.R. 59)“…tate law rather than section 522(d) in the bankruptcy code. 14 M.R.S.A. § 4426. The bankruptcy court rejected the argu…”
- In Re Bates (United States Bankruptcy Court, D. Maine 1994, 176 B.R. 104)“…b)(1), to “opt out” of § 522(d)’s federal exemption scheme. 14 M.R.S.A. § 4426. In re Maylin, 155 B.R.…”
- Young v. Camelot Homes, Inc. (In Re Young) (United States Bankruptcy Court, D. Maine 2008, 390 B.R. 480)“…ebtors residing in Maine. See § 522(b)(2); 14 M.R.S.A. § 4426; In re MacLeod, 295…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 11
§ 522ExemptionsIn forcecited in 53 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 53 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Georgia (2026): Exemptions & Means Test
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Sources and References
- 14 M.R.S. 4422, Maine exempt property (homestead, motor vehicle, household goods, tools, wildcard)(legislature.maine.gov).gov
- 14 M.R.S. 4426, Maine exemptions in bankruptcy proceedings (opt-out from federal 522(d))(legislature.maine.gov).gov
- U.S. Bankruptcy Court, District of Maine, notice of SJC Order JB-24-02 adjusting 14 M.R.S. 4422 exemption amounts effective October 24, 2024(meb.uscourts.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after April 1, 2026(justice.gov).gov
- 11 U.S.C. 522, exemptions including the state opt-out authority in 522(b) and federal nonbankruptcy exemptions in 522(b)(3)(law.cornell.edu)
- U.S. Bankruptcy Court for the District of Maine (Portland and Bangor)(meb.uscourts.gov).gov
- Maine Supreme Judicial Court Administrative Order JB-24-02, Adjustments to Exemptions from Attachment and Execution Contained in 14 M.R.S. 4422, effective October 24, 2024 (full table of adjusted amounts)(courts.maine.gov)
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after July 15, 2026(justice.gov)