Filing Chapter 7 Bankruptcy in Maine (2026)
Reviewed by DocDraft Legal Team · Maine · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Maine. Maine is an opt-out state: under 14 M.R.S. 4426 you must use Maine's exemptions and cannot choose the federal 522(d) list. This page explains Maine's homestead exemption under 14 M.R.S. 4422, which protects up to $80,000 of equity, or $160,000 if you or a dependent are 60 or older or disabled, along with the vehicle, wildcard, and retirement figures. It also covers the means-test median income and the single U.S. Bankruptcy Court for the District of Maine where all Mainers file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Maine use state or federal bankruptcy exemptions?
Maine is an opt-out state. Under 14 M.R.S. 4426, a debtor filing bankruptcy in Maine must use Maine's exemptions and cannot elect the federal 11 U.S.C. 522(d) list. Maine's exemptions are set out in 14 M.R.S. 4422, covering homestead, vehicle, household goods, wages, and retirement.
Can I keep my house if I file Chapter 7 in Maine?
Often yes. Under 14 M.R.S. 4422(1), Maine's homestead exemption protects up to $80,000 of equity in your residence, rising to $160,000 if you or a dependent living there is 60 or older or disabled. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Maine?
Usually yes if your equity is modest. Maine exempts up to $7,500 of equity in one motor vehicle under 14 M.R.S. 4422(2). If your car equity is at or below that figure, the vehicle is protected. Equity above $7,500 may be partly reachable by the trustee unless another exemption covers it.
What is the income limit to file Chapter 7 in Maine?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Maine are $75,892 for one earner, $90,445 for two, $106,822 for three, and $131,577 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Maine's Opt-Out Rule, the 14 M.R.S. 4422 Homestead, and the District of Maine
Maine is a bankruptcy opt-out state. Under 14 M.R.S. 4426, a debtor filing in Maine must use Maine's exemptions and cannot choose the federal 11 U.S.C. 522(d) set. Maine's exemptions live in 14 M.R.S. 4422. The headline homestead exemption under 14 M.R.S. 4422(1) protects up to $80,000 of equity in a residence, doubling to $160,000 when the debtor or a dependent living in the home is 60 or older or physically or mentally disabled. Maine exempts up to $7,500 of equity in one motor vehicle under 14 M.R.S. 4422(2). Its wildcard under 14 M.R.S. 4422(15) covers about $400 of any property plus up to $6,000 of any unused homestead exemption applied to other assets, which helps renters and low-equity filers. Retirement plans are protected under 14 M.R.S. 4422(13). Maine is a single-district state: everyone files in the U.S. Bankruptcy Court for the District of Maine, which sits in Portland and Bangor.
Relevant Laws
Maine Exempt Property (14 M.R.S. 4422)
Maine's core exemption statute. Subsection 1 sets the homestead exemption at up to $80,000, or $160,000 if the debtor or a dependent is 60 or older or disabled; subsection 2 exempts $7,500 in one motor vehicle; subsection 15 provides the wildcard; and subsection 13 protects retirement funds.
Maine Exemptions in Bankruptcy Proceedings (14 M.R.S. 4426)
Maine's opt-out statute. It limits a bankruptcy debtor to the exemptions available under 11 U.S.C. 522(b)(3), meaning the Maine exemptions in 14 M.R.S. 4422, and bars use of the federal 522(d) list. This is why Maine filers use only state exemptions.
Maine Motor Vehicle and Wildcard Exemptions (14 M.R.S. 4422(2), (15))
Within Maine's exemption statute, subsection 2 exempts up to $7,500 of equity in one motor vehicle, and subsection 15 provides the wildcard of about $400 plus up to $6,000 of unused homestead applied to other property.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Maine has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Maine Chapter 7 Exemption Table
Homestead
14 M.R.S. 4422(1): up to $80,000 of equity in your residence, rising to $160,000 if the debtor or a dependent living in the home is 60 or older or is physically or mentally disabled. Maine is opt-out, so you cannot substitute the federal homestead figure.
Motor vehicle
14 M.R.S. 4422(2): up to $7,500 of equity in one motor vehicle. Equity above the figure may be reachable by the trustee unless the wildcard exemption absorbs the excess.
Wildcard
14 M.R.S. 4422(15): roughly $400 in any property, plus up to $6,000 of any unused homestead exemption applied to other assets. This portable amount helps renters and low-equity filers protect cash, tools, or a second vehicle.
Personal property
14 M.R.S. 4422 exempts household furnishings, goods, apparel, appliances, books, and musical instruments up to a per-item cap, plus jewelry, a burial plot, and provisions and fuel held for personal use. Tools of the trade are exempt up to a separate cap under 14 M.R.S. 4422(5).
Wages
Wages are protected in Maine through the state's earnings-garnishment limits and the wildcard. Because Maine is opt-out, a debtor relies on the 14 M.R.S. 4422 exemptions and Maine's garnishment restrictions rather than the federal 522(d) wage provisions to shield take-home pay.
Retirement and tools
14 M.R.S. 4422(13) exempts retirement plans and similar funds; ERISA-qualified plans are separately excluded from the estate under federal law. Tools, implements, and materials necessary to your trade or occupation are exempt up to the cap in 14 M.R.S. 4422(5).
Suggested Compliance Checklist
Confirm the current Maine means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Maine median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $75,892 for one, $90,445 for two, $106,822 for three, and $131,577 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Maine and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Value your assets against the Maine exemptions
Before preparing your schedules days after startingValue your home, vehicle, and personal property so you can match assets to Maine's exemptions under 14 M.R.S. 4422: the $80,000 or $160,000 homestead, the $7,500 vehicle, the wildcard, and retirement protections. Maine is opt-out, so the federal 522(d) list is not available.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Maine, the single federal bankruptcy court for the whole state, with offices in Portland and Bangor. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Maine means-test median income | Check your household size against the U.S. Trustee Maine median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $75,892 for one, $90,445 for two, $106,822 for three, and $131,577 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Maine and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Value your assets against the Maine exemptions | Value your home, vehicle, and personal property so you can match assets to Maine's exemptions under 14 M.R.S. 4422: the $80,000 or $160,000 homestead, the $7,500 vehicle, the wildcard, and retirement protections. Maine is opt-out, so the federal 522(d) list is not available. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Maine, the single federal bankruptcy court for the whole state, with offices in Portland and Bangor. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under 14 M.R.S. 4422(1), Maine's homestead exemption protects up to $80,000 of equity in your residence. That amount rises to $160,000 if you or a dependent who lives in the home is 60 or older or is physically or mentally disabled. If your home equity fits within the applicable figure, Chapter 7 generally lets you keep the house.
Under 14 M.R.S. 4422(2), Maine exempts up to $7,500 of equity in one motor vehicle. Equity is the vehicle's value minus what you still owe on it. If your car equity is at or below $7,500 it is protected in Chapter 7; equity above that may be reachable unless the wildcard exemption under 14 M.R.S. 4422(15) covers the difference.
Maine's wildcard under 14 M.R.S. 4422(15) lets you exempt roughly $400 of any property, plus up to $6,000 of any unused homestead exemption applied to other assets such as cash, tools, or a second vehicle. Renters and low-equity homeowners who do not need the full homestead often use this to protect additional property.
No. Chapter 7 in Maine discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Generally yes. Under 14 M.R.S. 4422(13), Maine exempts retirement plans and similar funds, and ERISA-qualified plans like most 401(k)s are separately excluded from the bankruptcy estate under federal law. Because Maine is opt-out, you claim these state protections under 14 M.R.S. 4426 rather than the federal 522(d) list.
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