Maine Bankruptcy Exemptions for 2019

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• ME Exemptions
• Real or personal property (including cooperative) used as residence to $47,500; if debtor has minor dependents in residence, to $95,000; if debtor over age 60 or physically or mentally disabled, $95,000 (joint debtors in this category may double); proceeds of sale exempt for six months
  Me. Rev. Stat. Ann. tit. 14, § 4422 (1)
  

• Annuity proceeds to $450 per month
  Me. Rev. Stat. Ann. tit. 24-A, § 2431
  
• Death benefit for police, fire, or emergency medical personnel who die in the line of duty
  Me. Rev. Stat. Ann. tit. 25, § 1612
  
• Disability or health proceeds, benefits, or avails
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(A),(C)
  Me. Rev. Stat. Ann. tit. 24-A, § 2429
  
• Fraternal benefit society benefits
  Me. Rev. Stat. Ann. tit. 24-A, § 4118
  
• Group health or life policy or proceeds
  Me. Rev. Stat. Ann. tit. 24-A, § 2430
  
• Life insurance policy, interest, loan value, or accrued dividends for policy from person you depended on, to $4,000
  Me. Rev. Stat. Ann. tit. 14, § 4422 (11)
  
• Life, endowment, annuity, or accident policy, proceeds or avails
  Me. Rev. Stat. Ann. tit. 14, § 4422 (14)(C)
  Me. Rev. Stat. Ann. tit. 24-A, § 2428
  
• Unmatured life insurance policy, except credit insurance policy
  Me. Rev. Stat. Ann. tit. 14, § 4422 (10)
  

• Alimony & child support needed for support
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(D)
  

Special Rules for Retirement Accounts

Under a new provision of the bankruptcy law, enacted in October 2005, virtually all types of pension and retirement accounts recognized by the IRS are completely exempt regardless of what state you live in.

This provision exempts"retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under Sections 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code."

This list covers 401(k)s, 403(b)s, profit-sharing and money purchase plans, IRAs (including SEP and SIMPLE plans), as well as defined-benefit plans.

The exemption applies whether you rely on the list of federal bankruptcy exemptions (11 U.S.C. 522(d)(12)) or the exemption laws of your own state (See 11 U.S.C. 522(b)(3)(C)). Section 522(b)(4) spells out the specific requirements for qualifying under these provisions.

These exemptions are unlimited, except for Roth and traditional IRAs, which are capped at an aggregate IRA account value of $1 million per individual (adjusted every three years for inflation). (See 11 U.S.C. 522(n))

SEP and SIMPLE IRAs, along with all other types of non-IRA retirement accounts such as 401(k)s and 403(b)s, are completely exempt.

More Info

For more details, see an excellent summary of how retirement accounts are treated under the new bankruptcy law from the August 2005 issue of the Journal of Financial Planning.

References to the Internal Revenue Code

The new bankruptcy law exemption for retirement accounts includes all funds "exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986."
Those sections cover:

• 401 (a qualified pension, profit-sharing and stock bonus plan created under a trust established by an employer for the exclusive benefit of employees or beneficiaries)
• 403 (qualified annuity plans that are established by an employer for an employee under IRC 404(a)(2) or 501(c)(3))
• 408 (IRAs)
• 408A (Roth IRAs)
• 414 (other retirement plan for controlled groups of employees such as churches, partnerships, proprietorships, and governments)
• 457 (eligible deferred compensation plans) or
• 501(a) (retirement plans established and maintained by tax-exempt organizations, e.g. churches, nonprofit organizations)

Special 'exclusion' of education accounts

Under the new bankruptcy law, education savings accounts or education IRAs created under sections 529 or 530 of the Internal Revenue Code are 'excluded' from the bankruptcy estate (not quite the same as 'exempt' but with the same result).

See, 11 U.S.C. 541(b)(6), (529 Education Tuition Plans) and 11 U.S.C. 541(b)(5) (530 Coverdell IRAS)

NOTE: Even though these education accounts are excluded from the bankruptcy estate, you still must list them on your forms (See section (11 U.S.C. 521(c).)

Also excluded are:

• benefits governed by ERISA (Click here for government info on ERISA and pension.)
• 414(d)(governmental retirement plans),
• IRC 457 (deferred compensation)
• 403(b)( tax deferred annuity plan including church plans, etc)

See 11 U.S.C. 541(b)(7)

• ERISA-qualified benefits
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(E)
  
• Judges
  Me. Rev. Stat. Ann. tit. 4, § 1203
  
• Legislators
  Me. Rev. Stat. Ann. tit. 3, § 703
  
• Payments from IRAs or other pensions or disability or survivor benefits needed for support of the debtor and dependents to $15,000
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(F)
  
• State employees
  Me. Rev. Stat. Ann. tit. 5, § 17054
  

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• Animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances to $200 per item
  Me. Rev. Stat. Ann. tit. 14, § 4422 (3)
  
• Balance due on repossessed goods; total amount financed can't exceed $2,000
  Me. Rev. Stat. Ann. tit. 9-A, § 5-103
  
• Burial plot in lieu of homestead exemption
  Me. Rev. Stat. Ann. tit. 14, § 4422 (1)
  
• Cooking stove; furnaces & stoves for heat
  Me. Rev. Stat. Ann. tit. 14, § 4422 (6)(A),(B)
  
• Food to last 6 months
  Me. Rev. Stat. Ann. tit. 14, § 4422 (7)(A)
  
• Fuel not to exceed 10 cords of wood, 5 tons of coal, or 1,000 gal. of heating oil
  Me. Rev. Stat. Ann. tit. 14, § 4422 (6)(C)
  
• Health aids
  Me. Rev. Stat. Ann. tit. 14, § 4422 (12)
  
• Jewelry to $750
  Me. Rev. Stat. Ann. tit. 14, § 4422 (4)
  
• Lost earnings payments needed for support
  Me. Rev. Stat. Ann. tit. 14, § 4422 (14)(E)
  
• Military clothes, arms, & equipment
  Me. Rev. Stat. Ann. tit. 37-B, § 262
  
• Motor vehicle to $5,000
  Me. Rev. Stat. Ann. tit. 14, § 4422 (2)
  
• Personal injury recoveries to $12,500
  Me. Rev. Stat. Ann. tit. 14, § 4422 (14)(D)
  
• Seeds, fertilizers, & feed to raise & harvest food for 1 season
  Me. Rev. Stat. Ann. tit. 14, § 4422 (7)(B)
  
• Tools & equipment to raise & harvest food
  Me. Rev. Stat. Ann. tit. 14, § 4422 (7)(C)
  
• Wrongful death recoveries needed for support
  Me. Rev. Stat. Ann. tit. 14, § 4422 (14)(B)
  

• Crime victims' compensation
  Me. Rev. Stat. Ann. tit. 14, § 4422 (14)(A)
  
• Maintenance under the Rehabilitation Act
  Me. Rev. Stat. Ann. tit. 26, § 1411-H
  
• Public assistance (including the federal earned income tax credit and additional child tax credit)
  Me. Rev. Stat. Ann. tit. 22, § 3766 (state income supplements)
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(A) ( social security benefit, unemployment compensation or a federal, state or local public assistance benefit, including, but not limited to, the federal earned income tax credit and additional child tax credit)
  Me. Rev. Stat. Ann. tit. 22, § 3180 (state income supplements)
  But see, In re Tetrault, No. 12–21373. (Bankr.D.Maine 2013) (debtors may exempt only refundable public assistance benefits. CTC is NOT exempt if no refund)
  
• Social Security
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(A)
  
• Unemployment compensation
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(A),(C)
  
• Veterans' benefits
  Me. Rev. Stat. Ann. tit. 14, § 4422 (13)(B)
  
• Workers' compensation
  Me. Rev. Stat. Ann. tit. 39-A, § 106
  

• Books, materials, & stock to $5,000
  Me. Rev. Stat. Ann. tit. 14, § 4422 (5)
  
• Commercial fishing boat, 46-foot limit
  Me. Rev. Stat. Ann. tit. 14, § 4422 (9)
  
• Logging implements
  Me. Rev. Stat. Ann. tit. 14, § 4422 (9A)
  
• One of each farm implement (and its maintenance equipment needed to harvest and raise crops)
  Me. Rev. Stat. Ann. tit. 14, § 4422 (8)
  

• $400 of any property
  Me. Rev. Stat. Ann. tit. 14, § 4422 (15)
  
• Unused portion of exemption in homestead to $6,000; or unused exemption in animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances, tools of the trade, & personal injury recoveries
  Me. Rev. Stat. Ann. tit. 14, § 4422 (16)