Maine Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
MAXIMUM WAGE GARNISHMENT ALLOWED: 25% of disposable income or up to 40 times the federal minimum wage, whichever is less
MAXIMUM INTEREST RATE: Legal: 8% Judgment: 15% (if less than $30,000; T-Bill rate if over $30,000)
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit cards): 6 years
Written Contract: 6 years (plus 20 with attestment) Domestic Judgment: 20 yearsForeign Judgment: 20 yearsBAD CHECK LAW DAMAGES: Amount of check, court and collection costs
MAINE BANKRUPTCY PROPERTY EXEMPTIONS (Main Revised Statutes Annotated):
Cannot use federal exemptions, but can claim the federal non-bankruptcy exemptions
The State of Maine has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real property: Real, co-op or personal property used a residence to $12,500; if debtor over age 60 or physically, mentally disabled, up to $60,000 and joint debtors may double exemption [4-4422(1)]
Personal property: Animals, appliances, clothing, books, furnishings and household goods, musical instruments and crops up to $200 per item [14-4422(3)]; automobile up to $2,500 [14-4422(2)]; food, enough to last six months [14-4422(7)A]; cooking / heating stove or furnace and fuel, unlimited amount and up to 10 cords of wood, 5 tons of coal or 1000 gallons of petroleum [14-4422(6)A and C]; health aids, unlimited amount [14-4422(12)]; jewelry up to $750, but unlimited amount for wedding and engagement rings [14-4422(4)]; business books, materials and stock up to $5,000 [14-4422(5)]; burial plot in lieu of real estate exemption [14-4422(1)]; lost earnings payments, unlimited amount [14-4422(14)E]; personal injury recoveries up to $12,500, but not for pain and suffering [14-4422(14)D]; tools, seeds, fertilizer, and equipment, amount needed to raise and harvest food for one season [14-4422(7)]; farm implements needed to harvest and raise crops, one of each type [14-4422(8)]; military uniforms, arms and equipment, unlimited amount [37-B-262]; wrongful death recoveries, unlimited amount [14-4422(14)B]; unused portion of real estate exemption up to $6,000 can be used for appliances, animals, books, clothing, furnishings and household goods, musical instruments, personal injury recoveries, crops and tools of trade [14-4422(15)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Annuity proceeds up to $450 per month [24-A-2431]; fraternal society benefits, unlimited amount [24-A-4118]; life insurance policy, proceeds, or loan value up to $4,000 [14-4422(11)]; group health or life insurance policy or proceeds, unlimited amount [24-A-2430]; disability or health insurance proceeds, unlimited amount [14-4422(13)A and C; 24-A-2429]; life, endowment, annuity or accident policy / proceeds, unlimited amount [14-4422(14)C and 24-A-2428]; unmatured life insurance policy, unlimited amount [14-4422(10)]
Pensions / Retirement Plans: Retirement benefits, unlimited amount [14-4422(13)E]; judges, legislators and state employees, unlimited amount [3-703, 4-1203 and 5-17054]
Public Benefits / Entitlements: Social Security, unlimited amount [14-4422(13)A]; crime victims compensation, unlimited amount [14-4422(14)A]; unemployment compensation, unlimited amount [14-4422(13)A and C]; aid to needy and needy families, unlimited amount [22-3180 and 22-3766]; veterans benefits, unlimited amount [14-4422(13)B]; workers compensation, unlimited amount [24A-2431]
Wages: None.
Miscellaneous: Boat used in commercial fishing up to five tons [14-4422(9)]
