Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Maine, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Maine law allows debtors to choose between using the state's bankruptcy exemptions or the federal bankruptcy exemptions, but not both. This means that when filing for bankruptcy in Maine, individuals have the flexibility to select the set of exemptions that most favorably protects their assets. Maine's specific exemptions include homestead, personal property, tools of the trade, wages, pensions, public benefits, insurance, alimony, and child support, among others. The federal exemptions, which are adjusted periodically for inflation, include similar categories with different exemption limits. Debtors should carefully review both sets of exemptions with an attorney to determine which set is more advantageous for their particular situation.