Maine State Bankruptcy Exemptions
14 M.R.S. § 4422. Exempt property
The following property is exempt from attachment and execution, except to the
extent that it has been fraudulently conveyed by the debtor.
1. 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 $ 35,000 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, provided that if
minor dependents of the debtor have their principal place of residence with the
debtor, the debtor's aggregate interest may not exceed $ 70,000 and provided
further 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 $ 35,000 or the
product of the debtor's fractional share times $ 70,000.
B. The debtor's aggregate interest, not to exceed $ 70,000 in value, in
property described in paragraph A, if the debtor or a dependent of the debtor
is either a person 60 years of age or older or a person physically or mentally
disabled and because of such disability is unable to engage in substantial
gainful employment and whose disability has lasted or can be expected to last
for at least 12 months or can be expected to result in death; provided 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 $ 70,000 or the product of the
fractional share of the debtor's interest times $ 140,000. This paragraph does
not apply to liens obtained prior to its effective date or to judgments based
on torts involving other than ordinary negligence on the part of the debtor.
C. That portion of the proceeds from any sale of property which is exempt under
this section shall be exempt for a period of 6 months from the date of receipt
of such proceeds for purposes of reinvesting in a residence within that period.
2. MOTOR VEHICLE. The debtor's interest, not to exceed $ 5,000 in value, in one
motor vehicle.
3. CLOTHING; FURNITURE; APPLIANCES; AND SIMILAR ITEMS. The debtor's interest,
not to exceed $ 200 in value in any particular item, in household furnishings,
household goods, wearing apparel, appliances, books, animals, crops or musical
instruments, that are held primarily for the personal, family or household use
of the debtor or a dependent of the debtor.
4. JEWELRY. The debtor's aggregate interest, not to exceed $ 750 in value, in
jewelry held primarily for the personal, family or household use of the debtor
or a dependent of the debtor and the debtor's interest in a wedding ring and an
engagement ring.
5. TOOLS OF THE TRADE. The debtor's aggregate interest, not to exceed $ 5,000
in value, in any implements, professional books or tools of the trade of the
debtor or the trade of a dependent of the debtor, including, but not limited
to, power tools, materials and stock designed and procured by the debtor and
necessary for carrying on the debtor's trade or business and intended to be
used or wrought in that trade or business.
6. FURNACES, STOVES AND FUEL. The debtor's interest in the following items held
primarily for the personal, family or household use of the debtor or a
dependent of the debtor:
A. One cooking stove;
B. All furnaces or stoves used for heating; and
C. All cooking and heating fuel not to exceed 10 cords of wood, 5 tons of coal,
1,000 gallons of petroleum products or its equivalent.
7. FOOD, PRODUCE AND ANIMALS. The debtor's interest in the following items held
primarily for the personal, family or household use of the debtor or a
dependent of the debtor:
A. All food provisions, whether raised or purchased, reasonably necessary for 6
months;
B. All seeds, fertilizers, feed and other material reasonably necessary to
raise and harvest food through one growing season; and
C. All tools and equipment reasonably necessary for raising and harvesting
food.
8. FARM EQUIPMENT. The debtor's interest in one of every type of farm implement
reasonably necessary for the debtor to raise and harvest agricultural products
commercially, including any personal property incidental to its maintenance and
operation.
9. FISHING BOAT. The debtor's interest in one boat, not exceeding 5 tons
burden, used by the debtor primarily for commercial fishing.
10. LIFE INSURANCE CONTRACT. Any unmatured life insurance contract owned by the
debtor, other than a credit life insurance contract.
11. LIFE INSURANCE DIVIDENDS, INTEREST AND LOAN VALUE. The debtor's aggregate
interest, not to exceed in value $ 4,000 less any amount of property of the
estate transferred in the manner specified in the United States Code, Title 11,
Section 542(d), in any accrued dividend or interest under, or loan value of,
any unmatured life insurance contract owned by the debtor under which the
insured is the debtor or an individual of whom the debtor is dependent.
12. HEALTH AIDS. Professionally prescribed health aids for the debtor or a
dependent of the debtor.
13. DISABILITY BENEFITS; PENSIONS. The debtor's right to receive the following:
A. A social security benefit, unemployment compensation or a local public
assistance benefit;
B. A veterans' benefit;
C. A disability, illness or unemployment benefit;
D. Alimony, support or separate maintenance, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor;
E. A payment or account under a stock bonus, pension, profitsharing, annuity or
similar plan or contract on account of illness, disability, death, age or
length of service, to the extent reasonably necessary for the support of the
debtor and any dependent of the debtor, unless:
1) The plan or contract was established by or under the auspices of an insider
that employed the debtor at the time the debtor's rights under the plan or
contract arose;
2) The payment is on account of age or length of service; and
3) The plan or contract does not qualify under the United States Internal
Revenue Code of 1954, Section 401(a), 403(a), 403(b), 408 or 409 ; or
F. A payment or account under an individual retirement account or similar plan
or contract on account of illness, disability, death, age or length of service
to the sum of $ 15,000 or to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor, whichever is greater.
14. LEGAL AWARDS; LIFE INSURANCE BENEFITS. The debtor's right to receive or
property that is traceable to the following:
A. An award under a crime victim's reparation law;
B. A payment on account of the wrongful death of an individual of whom the
debtor was a dependent, to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor;
C. A payment under a life insurance contract that insured the life of an
individual of whom the debtor was a dependent on the date of the individual's
death, to the extent reasonably necessary for the support of the debtor and any
dependent of the debtor;
D. A payment, not to exceed $ 12,500, on account of personal bodily injury, not
including pain and suffering or compensation for actual pecuniary loss, of the
debtor or an individual of whom the debtor is a dependent; or
E. A payment in compensation of loss of future earnings of the debtor or an
individual of whom the debtor is or was a dependent, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor.
15. OTHER PROPERTY. The debtor's aggregate interest, not to exceed in value
$400, in any property, whether or not otherwise exempt under this section.
16. UNUSED RESIDENCE EXEMPTION. The debtor's interest, equal to any unused
amount of the exemption provided under subsection 1 but not exceeding $ 6,000,
in any property exempt under subsections 3 and 5 and subsection 14, paragraph
D.
24-A M.R.S. § 2428. Exemption of proceeds--life, endowment, annuity, accident
contracts
1. Certain policies of insurance shall be exempt from claims of creditors, and
the rights of beneficiaries and assignees thereof shall be protected, as set
forth.
2. Except in cases of transfers with intent to defraud creditors, if a contract
of life, endowment, annuity or accident insurance, whether heretofore or
hereafter issued, is effected by any person on his own life or on another life,
in favor of a person other than himself or is assigned or in any way made
payable to any other person, the lawful beneficiary or assignee thereof, other
than the insured or the person so effecting such contract of insurance or
executors or administrators of such insured or of the person so effecting such
contract of insurance, shall be entitled to its proceeds and avails against the
creditors and representatives of the insured and of the person effecting the
same, whether or not the right to change the beneficiary is reserved or
permitted and whether or not the contract of insurance is made payable to the
person whose life is insured or to the executor or administrator of such person
if the beneficiary or assignee shall predecease such person, and such proceeds
and avails shall be exempt from all liability for any debt of the beneficiary
existing at the time the proceeds and avails is made available for his use.
Subject to the statutes of limitations, the amount of any premiums for such
contract of insurance paid with intent to defraud creditors, with interest
thereon, shall inure to the benefit of the creditors from the proceeds of the
contract of insurance; but the insurer issuing the contract shall be discharged
of all liability thereon by payment of its proceeds in accordance with its
terms, unless before such payment the insurer shall have received written
notice, by or in behalf of a creditor with specifications of the amount claimed
along with such facts as will assist the insurer to ascertain the particular
policy, of a claim to recover for transfer made or premiums paid with intent to
defraud creditors, and unless such insurer shall have been served with trustee
process for the cash surrender value of any such contract of insurance as
required by law prior to making payment of the proceeds in accordance with the
terms of the contract of insurance.
3. For the purpose of subsection 2, a contract of insurance shall also be
deemed to be payable to a person other than the insured if and to the extent
that a facility-of-payment clause or similar clause in the contract permits the
insurer to discharge its obligation after the death of the individual insured
by paying the death benefits to a person as permitted by such clause.
24-A § 2429. Exemption of proceeds, health insurance
Except as may otherwise be expressly provided by the policy or contract, the
proceeds or avails of all contracts of health insurance and of provisions
providing benefits on account of the insured's disability which are
supplemental to life insurance or annuity contracts heretofore or hereafter
effected shall be exempt from all liability for any debt of the insured, and
from any debt of the beneficiary existing at the time the proceeds are made
available for his use.
24-A § 2430. Exemption of proceeds, group insurance
1. A policy of group life insurance or group health insurance or the proceeds
thereof payable to the individual insured or to the beneficiary thereunder,
shall not be liable, either before or after payment, to be applied by any legal
or equitable process to pay any debt or liability of such insured individual or
his beneficiary or of any other person having a right under the policy.
2. This section shall not apply to group insurance issued pursuant to this
Title to a creditor covering his debtors, to the extent that such proceeds are
applied to payment of the obligation for the purpose of which the insurance was
so issued.
24-A § 2431. Exemption of proceeds, individual annuity contracts; assignability
of rights
1. The benefits, rights, privileges and options which under any individual
annuity contract heretofore or hereafter issued are due or prospectively due
the annuitant, shall not be subject to execution nor shall the annuitant be
compelled to exercise any such rights, powers, or options, nor shall creditors
be allowed to interfere with or terminate the contract, except:
A. As to amounts paid for or as premium on any such annuity with intent to
defraud creditors, with interest thereon, and of which the creditor has given
the insurer written notice received at its home office prior to the making of
the payment to the annuitant out of which the creditor seeks to recover. Any
such notice shall specify the amount claimed or such facts as will enable the
insurer to ascertain such amount, and shall set forth such facts as will enable
the insurer to ascertain the annuity contract, the annuitant and the payment
sought to be avoided on the ground of fraud.
B. The total exemption of benefits presently due and payable to any annuitant
periodically or at stated times under all annuity contracts under which he is
an annuitant, shall not at any time exceed $ 450 per month for the length of
time represented by such installments, and that such periodic payments in
excess of $ 450 per month shall be subject to garnishee execution to the same
extent as are wages and salaries.
C. If the total benefits presently due and payable to any annuitant under all
annuity contracts under which he is an annuitant, shall at any time exceed
payment at the rate of $ 450 per month, then the court may order such annuitant
to pay to a judgment creditor or apply on the judgment, in installments, such
portion of such excess benefits as to the court may appear just and proper,
after due regard for the reasonable requirements of the judgment debtor and his
family, if dependent upon him, as well as any payments required to be made by
the annuitant to other creditors under prior court orders.
2. If the contract so provides, the benefits, rights, privileges or options
accruing under such contract to a beneficiary or assignee shall not be
transferable nor subject to commutation, and if the benefits are payable
periodically or at stated times, the same exemptions and exceptions contained
herein for the annuitant, shall apply with respect to such beneficiary or
assignee.
24-A § 2432. Exemption of employee's interest--group annuities, pension trusts
If any group annuity contract or pension trust, whether heretofore or hereafter
issued, is effected by an employer for the benefit of his employees, whether or
not requiring any contribution toward the cost thereof by such employees, the
interest of any employee, beneficiary or joint or contingent annuitant in any
policy, certificate or fund in connection therewith and his interest in any
payments or proceeds thereof and in any optional or death benefits shall not in
any way be subject to execution, levy, attachment, garnishment, trustee process
or any other legal or equitable process.
37-B § 262. Exemption from attachment and distress
The clothes, arms, military outfit and accoutrements furnished by or through
the State to, or required of, a member of the state military forces are not
subject to any civil action, distress, execution or sale for debt or payment of
taxes.
22 § 3180. Inalienability of aid
All rights to aid shall be absolutely inalienable by any assignment, execution,
pledge or otherwise, and shall not pass, in case of insolvency or bankruptcy,
to any trustee, assignee or creditor.
5 § 17053. Exemption from taxation
The money in the various funds created by this Part are exempt from any state,
county or municipal tax in the State.
5 § 17054. Legal process and assignment
The right of a person to a retirement allowance, the retirement allowance
itself, the refund of a person's accumulated contributions, any death benefit,
any other right accrued or accruing to any person under this Part and the money
in the various funds created by this Part may not be subject to execution,
garnishment, attachment or any other process and shall be unassignable except
that:
1. RETIREMENT ALLOWANCE AVAILABLE FOR CHILD SUPPORT. A member's retirement
allowance is available to satisfy any child support obligation that is
otherwise enforceable by execution, garnishment, attachment, assignment or
other process;
2. ACCUMULATED CONTRIBUTIONS AVAILABLE FOR CHILD SUPPORT. A member's
accumulated contributions, being refundable under sections 17705, 17706, 18306
and 18307, are available to satisfy any child support obligation that is
otherwise enforceable by execution, garnishment, attachment, assignment or
other process;
3. RECOVERY OF OVERPAYMENTS BY THE RETIREMENT SYSTEM. Any amounts due the
retirement system as the result of overpayment or erroneous payment of
benefits, an excess refund of contributions or overpayment or erroneous payment
of life insurance benefits may be recovered from an individual's contributions,
any benefits or life insurance benefits payable under this Part to the
individual or the beneficiary of the individual or any combination of
contributions and benefits. If the overpayment or excess refund of
contributions resulted from an unintentional mistake by an employee of the
retirement system, the retiree or the recipient of the benefit or life
insurance benefit, no interest may be collected by the retirement system on the
amount to be recovered. The executive director may also take action to recover
those amounts due from any amounts payable to the individual by any other state
agency or by an action in a court of competent jurisdiction. Whenever the
executive director makes a decision to recover any amounts under this
subsection, that decision is subject to appeal under section 17451; and
4. QUALIFIED DOMESTIC RELATIONS ORDER. The rights of a member or retiree under
this Part are subject to the rights of or assignment to an alternate payee
under a qualified domestic relations order in accordance with section 17059.
26 § 1044. Protection of rights and benefits
1. WAIVER OF RIGHTS VOID; PENALTY. Any agreement by an individual to waive,
release or commute his rights to benefits or any other rights under this
chapter shall be void. Any agreement by an individual in the employ of any
person or concern to pay all or any portion of an employer's contributions,
required under this chapter from such employer, shall be void. No employer
shall directly or indirectly make or require or accept any deduction from wages
to finance the employer's contributions required from him, or require or accept
any waiver of any right hereunder by any individual in his employ. Any employer
or officer or agent of an employer who violates any provision of this
subsection shall, for each offense, be guilty of a Class E crime.
2. LIMITATION OF FEES; PENALTY. No individual claiming benefits shall be
charged fees of any kind in any proceeding under this chapter by the commission
or its representatives or by any court or any officer thereof unless otherwise
provided by Title 5, section 8001 et seq. Any individual claiming benefits in
any proceeding before the commission or a court may be represented by counsel
or other duly authorized agent; but no such counsel or agents shall either
charge or receive for such services more than an amount approved by the
commission. In the event a claimant has retained counsel for the purpose of
prosecuting an appeal from a decision of the commission, and the final decision
of such court results in a reversal, in whole or in part, of the decision
appealed from, the fees for such service shall be paid by the commissioner from
his administrative fund. Any person who violates any provision of this
subsection shall be guilty of a class E crime.
3. NO ASSIGNMENT OF BENEFITS; EXEMPTIONS. Any assignment, pledge or encumbrance
of any right to benefits which are or may become due or payable under this
chapter shall be void. Such rights to benefits shall be exempt from levy,
execution, attachment or any other remedy whatsoever provided for the
collection of debt. Benefits received by any individual, so long as they are
not mingled with other funds of the recipient, shall be exempt from any remedy
whatsoever for the collection of all debts except debts incurred for
necessaries furnished to such individual or his spouse or dependents during the
time when such individual was unemployed. No waiver of any exemption provided
for in this subsection shall be valid.
39-A § 106. Invalidity of waiver of rights; claims not assignable
No agreement by an employee, unless approved by the board or by the
Commissioner of Labor, to waive the employee's rights to compensation under
this Act is valid. No claims for compensation under this Act are assignable or
subject to attachment or liable in any way for debt, except for the enforcement
of a current support obligation or support arrears pursuant to Title 19-A,
chapter 65, subchapter II, article 3 or Title 19-A, chapter 65, subchapter III,
or for reimbursement of general assistance pursuant to Title 22, section 4318.
31 § 305. Nature of a partner's right in specific partnership property
A partner is co-owner with his partners of specific partnership property
holding as a tenant in partnership.
The incidents of this tenancy are such that:
1. SPECIFIC PARTNERSHIP PROPERTY. A partner, subject to this Act and to any
agreement between the partners, has an equal right with his partners to possess
specific partnership property for partnership purposes; but he has no right to
possess such property for any other purpose without the consent of his
partners;
2. ASSIGNMENT. A partner's right in specific partnership property is not
assignable except in connection with the assignment of rights of all the
partners in the same property;
3. ATTACHMENT. A partner's right in specific partnership property is not
subject to attachment or execution, except on a claim against the partnership.
When partnership property is attached for a partnership debt the partners, or
any of them, or the representatives of a deceased partner, cannot claim any
right under the homestead or exemption laws;
4. DEATH OF A PARTNER. On the death of a partner his right in specific
partnership property vests in the surviving partner or partners, except where
the deceased was the last surviving partner, when his right in such property
vests in his legal representative. Such surviving partner or partners, or the
legal representative of the last surviving partner, has no right to possess the
partnership property for any but a partnership purpose;
5. EXCLUSIONS. A partner's right in specific partnership property is not
subject to a spouse's right and interest by descent or allowances to widows,
widowers, heirs or next of kin.
Note: Exemptions may have changed since our last update.
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