Maine Bankruptcy Laws
Bankruptcy laws have changed in recent years. It is important to learn all you can about Maine bankruptcy laws if you feel this is one of your last options to deal with your financial situation. Maine has four bankruptcy district courts, which are found in Portland, Presque Isle, Bangor and Augusta, the state capitol. You need information to learn if you must file for a Chapter 7 or Chapter 13 bankruptcy. Your income, debts and expenses will be analyzed to be determined by the 2005 Maine bankruptcy laws to rule on Chapter 7 or chapter 13 eligibility.
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Chapter 7
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The court looks at your average income for 6 months prior to the filing and compares the numbers to the median income of the state of Maine. You will be able to file for a Chapter 7 bankruptcy if you are unable to pay at least $6,000 at $100 a month to unsecured creditors after normal expenses over the next 5 years.
Chapter 13
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You will work with a trustee or bankruptcy lawyer to develop a plan to repay debt owed to creditors. The bankruptcy judge will render a decision and confirm or deny your plan.
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Paperwork
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You must follow a process that requires you to itemize all current income sources, all major financial transactions from the two previous years, monthly living expenses, both secured and unsecured debts along with all assets and possessions including real estate. Have your tax returns, deeds, vehicle titles and any loan documents you have ready to present to the bankruptcy court.
Exemptions
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An attorney will help you determine exactly what, if any, of your property is exempt from seizure by the court under Maine exemptions. You or your attorney must file a two-page petition and other forms of paperwork to the Maine bankruptcy court for exemptions. You must be honest and forthcoming in this paperwork, or you risk putting the petition in jeopardy. You may also be eligible for federal exemptions.
Cost
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The fee for filing a Chapter 7 bankruptcy in Maine is $274. The fee cannot be waived due to your financial situation, but you may be able to arrange to pay installments. The fee for a Chapter 13 bankruptcy is $189.
Trustee
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When you file bankruptcy, the court takes control of your bills. This creates a "stay," which keeps all creditors from contacting you or from enacting a foreclosure on your property. A trustee is appointed to your case and will see to it that your bills are paid when possible. The trustee will review your paperwork, debts, assets and exemptions. This person can challenge any portion of your case.
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