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Maine Asset Protection Laws

Filed under Asset Protection Strategies. Fact checked on April 22, 2012.

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These assets are exempted from a state court or bankruptcy proceeding in Maine.

Homestead: Real or personal property including co-op up to $95,000 for families; if single up to $47,500; if debtor over 60 or physically or mentally disabled up to $70,000 and may be doubled for joint debtors.

Pensions and Retirement Benefits: ERISA-qualified plans. Funds exempt for legislators, judges and state employees. IRA exemptions for conventional, Roth, SEP and SIMPLE plans. Limited to amounts that are necessary for the support of the debtor and his dependents. Roth IRAs and regular IRAs up to $1,245,000 per person. Warning: No protection for IRAs that are established by an "insider" of the debtor. This provision could eliminate the protection otherwise offered to small business owners by SEP and SIMPLE plans.

Insurance: Annuity proceeds up to $450 per month. Life insurance policy, life insurance payments to debtor necessary for support. Life policy, accrued dividends, or cash value of person who supported debtor. Unmatured life insurance policy (except credit insurance policy). Disability benefits and pensions. Group health or life policy or proceeds. Fraternal society benefits.

Personal Property: Animals, crops, musical instruments, books, clothing, furnishings, household goods up to $200 per item. Furnaces, stoves and fuel. Jewelry up to $750. Payments for lost earnings needed for support. Motor vehicle up to $5,000. Personal injury and wrongful death recoveries up to $12,500 (excluding pain and suffering). Prescribed health aids. Food and produce for 6 months. Burial plot in lieu of homestead exemption.

Tools of Trade: Tools up to $5,000, plus one of every type of farming implement and the debtor's interest in up to a 5-ton commercial fishing boat.

Miscellaneous: Alimony and child support. Business partnership property.

Wages: For consumer credit transactions, the greater of 75% of weekly disposable earnings, or 40 times federal minimum wage.

Public Benefits: Veteran's benefits. Workers' compensation. Unemployment compensation. AFDC. Crime victim's compensation. Social Security.

Wild Card: $400 of any property. Unused homestead exemption up to $6,000 for animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances, tools of the trade, and personal injury recoveries.

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