Bankruptcy Exemptions

When you are first exploring bankruptcy as an option for debt relief, you may see the term "liquidation." It is true that when some people file bankruptcy, their assets are liquidated and then distributed among creditors, but the vast majority of people who end up in this situation do not lose everything as "liquidation" might suggest.

Bankruptcy exemptions provide debtors with a means to save important assets while still discharging the unsecured debts that weigh them down. Many cases are often considered "no-asset" cases, as debtors do not have enough equity in assets to warrant liquidation.

Do not let the fear of losing your property deter you from learning more about how bankruptcy can help. It is typically the most efficient, effective and lasting way to achieve debt relief. Contact my office, Jeffrey P. White and Associates, P.C., and discuss your options directly with me.

Protecting Your Home

Maine's homestead exemption allows for up to $47,500 in home equity protection when you file bankruptcy. If you have dependent children, this exemption rises to $95,000.

Protecting Your Personal Property

When personal property is itemized by a bankruptcy trustee, it is typically saved from liquidation. Exemptions in Maine allow for up to $5,000 in car value to be saved, and home and personal goods valued up to $200 to be saved. Other more specific schedules exist for certain types of property, so discuss your personal concerns with a bankruptcy lawyer.

Protecting Your Retirement Accounts

Accounts used for the support of you and your dependents are almost always exempt from bankruptcy liquidation. This includes pensions, annuities or benefits related to illnesses and disabilities.

What About Child Support And Alimony?

It is important to note that bankruptcy will not permit the discharge of debts related to child support or alimony payments. Bankruptcy can, however, provide a way to get rid of other debts, thereby giving you more ability to pay for domestic support obligations.

An Auburn Attorney To Help

Schedule a free initial consultation online or by telephone at 207-536-6224 to discuss how bankruptcy can rid you of debt while protecting your valuable assets.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.