If financial struggles are interfering with your life, it may be time to consider what personal bankruptcy could do for you.
This page is designed to give you some basic information about the two types of personal bankruptcy: Chapter 7 and Chapter 13 bankruptcy.
If you’re considering filing bankruptcy, get answers by speaking with a Maine bankruptcy lawyer.
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Chapter 7 bankruptcy cases tend to move quickly, and are often over in a few months.
Chapter 7 offers filers a discharge of unsecured debt and is sometimes called “liquidation.” This name comes from the liquidation sale that takes place during some Chapter 7 bankruptcy cases. During this sale, a filer’s bankruptcy trustee can liquidate – that is, convert to cash by selling – some of a filer’s possessions.
But don’t panic. Maine bankruptcy law outlines special exemptions when filing bankruptcy. These exemptions may be used to protect most, if not all, of your personal property – including your home and car.
Chapter 13 bankruptcy, also known as “reorganization,” offers financial relief by giving people three-five years to catch up on debts by following a court-outlined repayment plan.
Because Chapter 13 petitioners must make regular payments, this bankruptcy option tends to work best for those with regular incomes who faced some temporary financial setback.
Filing Chapter 13 bankruptcy may also stop mortgage foreclosure. It may prevent foreclosure for several years because of the automatic stay in bankruptcy, which prevents creditors from taking any collection action.
If you’re curious about which option could work best for you, or if you’d simply like to better understand the state’s bankruptcy laws, you may benefit from speaking with a Maine bankruptcy attorney.
To connect with a lawyer practicing in your area, simply call us at 877-349-1309 or fill out the free form on this page. We’ll put you in touch with a lawyer as soon as possible.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.