Bankruptcy in Maine (2026): Exemptions & Means Test

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, certain veterans' and federal-employee benefits, and tax-exempt retirement accounts under 11 U.S.C. 522(b)(3)(C). 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 small general allowance for any property, plus the ability to apply unused homestead exemption (up to roughly $12,400) to other assets, which can cover cash or a second vehicle.
• Retirement accounts: tax-qualified plans are protected through the federal nonbankruptcy exemptions that Maine preserves.

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 April 1, 2026, the Maine median family income is:

Add $11,100 for each additional person beyond four. These figures were published February 12, 2026 and apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises them roughly twice a year, 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.