Maine Bankruptcy

Bankruptcy is a structured legal mechanism that individuals and businesses may use to seek financial relief either by allowing non-essential assets to be sold to address debts or by reorganizing their finances through a court-approved repayment plan.

In Maine, bankruptcy filers can choose between state or federal exemptions but are not allowed to mix exemptions from both systems. Maine residents’ ability to choose between two exemption systems allows them to make a choice that best protects their assets.

How to File Bankruptcy in Maine

The first step in filing for bankruptcy in Maine is to determine the type that fits your case. If you earn below the state median, you may qualify for Chapter 7 bankruptcy. All filers are also expected to complete a credit counseling course from providers familiar with Maine’s economy.

Next, prepare a comprehensive set of documents that shows your financial situation, such as pay stubs, tax returns for the past six months, monthly expenses, and a list of all assets. To file, submit a voluntary petition, creditors list, required certificates, and schedules to the Bankruptcy Court, along with the filing fee of $338 for Chapter 7 or $313 for Chapter 13.

It is also important to attend the meeting of creditors conducted by the assigned trustee a month after filing your case. In addition, you must complete a financial management course from an approved provider before receiving a debt discharge.

Maine Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

It is imperative for an individual to file the right bankruptcy chapter to ensure the most effective debt relief and to maximize asset protection within the bounds of law:

Chapter 7

This is a legal process that eliminates unsecured debts through court supervision. The court-appointed trustee reviews all assets and finances, sells nonexempt property, and uses the proceeds to repay creditors. Once the process is complete, eligible debts are discharged and collection efforts must stop.

Chapter 13

Through a court-approved plan, debtors can restructure their debts and pay off their debts over three to five years. After successful completion, remaining eligible debts are discharged and assets are retained throughout the process.

Chapter 11

In Maine, Chapter 11 bankruptcy allows businesses or individuals to reorganize debts while continuing to operate their business. A repayment plan that is subject to court approval is proposed to repay creditors over time. In other words, this process helps maintain business activity while working towards financial stability.

Step-by-Step Checklist for Maine Filers

Filing for bankruptcy in Maine involves several steps, each designed to ensure compliance with state and federal law. You may use the following checklist when preparing your case:

• Determine the correct type of bankruptcy to file
• Complete a credit counseling course
• Prepare financial documentation
• File with the Bankruptcy Court and pay the filing fees
• Attend the meeting of creditors
• Complete financial management course
• Receive debt discharge

Maine Bankruptcy Court & Record Access

The federal bankruptcy cases for the entire State of Maine are handled by the United States Bankruptcy Court for the District of Maine. The court maintains two main divisional offices which are located in:

Main Office - Portland

This office covers counties like York, Cumberland, Sagadahoc, Oxford, and Androscoggin. It is situated at:

Divisional Office - Bangor

This office covers counties such as Somerset, Hancock, Knox, Aroostook, Franklin, and Piscataquis. It is located at:

You may view and download documents from bankruptcy cases heard in Maine through the Public Access to Court Electronic Records, known as PACER. If you only need basic case details, you may use the Multi Court Voice Case Information System by calling 1-866-222-8029. This option does not require an internet connection, and the information is provided through a computer-generated voice.