Maine bankruptcy laws are provided to allow debtors relief from their debts so they can begin rebuilding their financial future free from debiliating debts. Learn about your rights and options for eliminating your debts by arranging a no obligation, no cost bankruptcy consultation meeting with a local ME bankruptcy lawyer. You can get answers to your questions and learn more about chapter 7 bankruptcy, chapter 13 bankruptcy and alternatives to bankruptcy you may not have thought of.
In Maine debtors with an overwhelming debt burden may file chapter 7 or chapter 13 bankruptcy to receive relief from their debts.
To be eligible to file chapter 7 bankruptcy a debtor must pass the "means test" which is a formula that will analyze your income to the states' average to determine if you are really in need of filing chapter 7. The aim of this is to prevent bankruptcy fraud. Chapter 7 is a liquidation bankruptcy and is provided for debtors with little to no income and assets. Chapter 7 gives debtors a fresh start in a short period of time, with a chapter 7 being over in as little as 4 months. Debtors filing chapter 7 bankruptcy must turn over any of their assets that are not protected by the ME exemptions in return for an elimination of their debts.
Chapter 13 is a reorganization bankruptcy and is popular for debtors with assets that are not protected by the bankruptcy exemptions and those debtors who are not eligible for chapter 7.