Help for Filing Bankruptcy in Maine
Making the decision to file for bankruptcy is never easy, but in some cases it may be the only option for eliminating debt. Residents of Maine can file for Chapter 7 or Chapter 13 bankruptcy protection, depending on their situation. Chapter 7, for example, is ideal if you have few assets and no way to repay what you owe. Chapter 13 allows you to keep your assets and repay your debts over time.
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Determining Eligibility
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To qualify for Chapter 7 bankruptcy, you must pass the means test. The means test measures your median income for the previous six months against state median income guidelines by family size. As of 2011, a single debtor in Maine was allowed a median income of $39,397. If your income exceeds this level, the court will compare your monthly income and expenses to determine whether you have sufficient disposable income to qualify for Chapter 13. As of 2011, Chapter 13 debtors are limited to $360,475 in unsecured debt and $1,081,400 in secured debt.
Credit Counseling
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The federal bankruptcy code requires all debtors to attend credit counseling within the 180 days prior to filing. You must present proof of your attendance to the bankruptcy court when you submit your petition. The U.S. Trustee Program and the Maine bankruptcy court maintain a list of approved credit counseling agencies through their websites.
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Filing Requirements
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You may file your bankruptcy petition with the bankruptcy clerk's office in Bangor or Portland, depending on where you live. When you file, you must pay all filing fees and submit the required documentation. The filing fees are $299 for Chapter 7 and $274 for Chapter 13 as of 2011. The court requires that you submit a list of your debts and assets, a list of all your creditors, your income statements for the previous six months, your prior year's tax return, a statement of financial affairs and a copy of your repayment plan if you're filing Chapter 13.
Property Exemptions
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When you file Chapter 7 bankruptcy, you must agree to give up some of your assets to the court. The bankruptcy trustee in charge of overseeing your case will liquidate these assets and distribute them to your creditors in lieu of payment. You must provide the court with a list of the assets you wish to exempt. As of 2011, Maine law allows you to exempt up to $90,000 worth of home equity value, depending on your age and number of dependents. You may also exempt a motor vehicle up to $5,000 and tools of the trade up to $5,000.
Discharge
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Before your Chapter 7 or Chapter 13 case can be discharged, you must complete a second course in financial management and attend a meeting of creditors. At this meeting, the trustee will ask you questions about your debts, assets and income to determine whether to grant a discharge. Chapter 13 debtors must also complete the terms of their repayment plan to receive a discharge.
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