An Act To Increase the Value of Property Exempt from Attachment and Execution
Maine Legislature, Session 130, LD 0737
Committee: Judiciary
Sponsors: TEPLER, JACKSON, BROOKS, MATHIESON, BAILEY, CARNEY, SANBORN, VITELLI
Amends: Title 11, Section 542, 14 MRSA §3126-A, 14 MRSA §4422, 14 MRSA §4426

Legislative Document
No. 737
H.P. 542
House of Representatives, March 5, 2021
An Act To Increase the Value of Property Exempt from Attachment 
and Execution
Reference to the Committee on Judiciary suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TEPLER of Topsham.
Cosponsored by President JACKSON of Aroostook and
Representatives: BROOKS of Lewiston, MATHIESON of Kittery, Senators: BAILEY of 
York, CARNEY of Cumberland, SANBORN of Cumberland, VITELLI of Sagadahoc.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  14 MRSA §3126-A, sub-§3, ¶B, as enacted by PL 1999, c. 587, §3, is 
amended to read:
B.  The amount by which the sum of disposable earnings and exempt income for that 
week exceeds 40 times the minimum hourly wage prescribed by 29 United States Code, 
Section 206(a)(1) or the state minimum hourly wage prescribed by Title 26, section 
664, whichever is higher at the time the earnings are payable; or
Sec. 2.  14 MRSA §4422, as amended by PL 2017, c. 177, §§1 to 4 and c. 209, §1 
and corrected by RR 2017, c. 1, §7, is further amended to read:
§4422.  Exempt property
The following property is exempt from attachment and execution, except to the extent 
that it has been fraudulently conveyed by the debtor.:
1.  Residence.  A debtor's residence. The exemption of a debtor's residence is subject 
to this subsection.
A.  Except as provided in paragraph B, the debtor's aggregate interest, not to exceed 
$47,500 in value, in real or personal property that the debtor or a dependent of the 
debtor uses as a residence, in a cooperative that owns property that the debtor or a 
dependent of the debtor uses as a residence, or in a burial plot for the debtor or a 
dependent of the debtor, except that if minor dependents of the debtor have their 
principal place of residence with the debtor, the debtor's aggregate interest may not 
exceed $95,000 and except that if the debtor's interest is held jointly with any other 
person or persons, the exemption may not exceed in value the lesser of $47,500 or the 
product of the debtor's fractional share times $95,000.
A-1.  The debtor's aggregate interest in real or personal property that the debtor or a 
dependent of the debtor uses as a residence, in a cooperative that owns property that 
the debtor or a dependent of the debtor uses as a residence or in a burial plot for the 
debtor or a dependent of the debtor is exempt.  For the purposes of this paragraph, the 
debtor's aggregate interest is deemed the median home price in the State for the 
preceding year, if available, as provided in this paragraph.
(1)  For the purposes of this paragraph, the median home price in the State as of 
December 2020 is $225,000.
(2)  Beginning January 1, 2022 and each January 1st thereafter, the value 
established in subparagraph (1) must be adjusted to reflect the median home price 
in the State for the preceding year.
A-2.  In addition to the aggregate interest described in paragraph A-1, the debtor's 
interest in a residence not to exceed 2% of the value of the municipal assessment for 
the residence plus the amount of property taxes assessed on the residence payable by 
the debtor for the preceding year is exempt.
B.  The debtor's aggregate interest, not to exceed $95,000 in value, in property 
described in paragraph A, if the debtor or a dependent of the debtor is either a person 
years of age or older or a person physically or mentally disabled and because of 
such disability is unable to engage in substantial gainful employment and whose 
disability has lasted or can be expected to last for at least 12 months or can be expected 
to result in death; except that if the debtor's interest is held jointly with any other person 
or persons, the exemption may not exceed in value the lesser of $95,000 or the product 
of the fractional share of the debtor's interest times $190,000.  This paragraph does not 
apply to liens obtained prior to its effective date or to judgments based on torts 
involving other than ordinary negligence on the part of the debtor.
C.  That portion of the proceeds from any sale of property which that is exempt under 
this section shall be is exempt for a period of 6 12 months from the date of receipt of 
such proceeds for purposes of reinvesting in a residence within that period.;
2.  Motor vehicle.  The debtor's interest, not to exceed $7,500 $15,000 in value, in one 
motor vehicle. and an amount equal to 2% of the manufacturer's suggested retail price for 
that motor vehicle plus the amount of any excise tax on that motor vehicle payable by the 
debtor for the preceding year;
3.  Clothing; furniture; appliances; and similar items.  The debtor's interest, not to 
exceed $200 $558 in value in any particular item, in household furnishings, household 
goods, wearing apparel, appliances, books, animals, crops or musical instruments, that are 
held primarily for the personal, family or household use of the debtor or a dependent of the 
debtor.;
4.  Jewelry.  The debtor's aggregate interest, not to exceed $750 $1,422 in value, in 
jewelry held primarily for the personal, family or household use of the debtor or a 
dependent of the debtor and the debtor's interest in a wedding ring and an engagement ring.;
5.  Tools of the trade.  The debtor's aggregate interest, not to exceed $5,000 $9,485 in 
value, in any implements, professional books or tools of the trade of the debtor or the trade 
of a dependent of the debtor, including, but not limited to, power tools, materials and stock 
designed and procured by the debtor and necessary for carrying on the debtor's trade or 
business and intended to be used or wrought in that trade or business.;
6.  Furnaces, stoves and fuel.  The debtor's interest in the following items held 
primarily for the personal, family or household use of the debtor or a dependent of the 
debtor:
A.  One cooking stove;
B.  All furnaces or stoves used for heating; and
C.  All cooking and heating fuel not to exceed 10 cords of wood, 5 tons of coal, 1,000 
gallons of petroleum products or its equivalent.;
7.  Food, produce and animals.  The debtor's interest in the following items held 
primarily for the personal, family or household use of the debtor or a dependent of the 
debtor:
A.  All food provisions, whether raised or purchased, reasonably necessary for 6 
months;
B.  All seeds, fertilizers, feed and other material reasonably necessary to raise and 
harvest food through one growing season; and
C.  All tools and equipment reasonably necessary for raising and harvesting food.;
8.  Farm equipment.  The debtor's interest in one of every type of farm implement 
reasonably necessary for the debtor to raise and harvest agricultural products commercially, 
including any personal property incidental to its maintenance and operation.;
9.  Fishing boat.  The debtor's interest in one boat, not exceeding 46 feet in length, 
used by the debtor primarily for commercial fishing.;
9-A.  Logging implements.  The debtor's interest in one of every type of professional 
logging implement reasonably necessary for the debtor to harvest and haul wood 
commercially, including any personal property incidental to its maintenance and 
operation.;
10.  Life insurance contract.  Any unmatured life insurance contract owned by the 
debtor, other than a credit life insurance contract.;
11.  Life insurance dividends, interest and loan value.  The debtor's aggregate 
interest, not to exceed in value $4,000 $4,588 less any amount of property of the estate 
transferred in the manner specified in the 11 United States Code, Title 11, Section 542(d), 
in any accrued dividend or interest under, or loan value of, any unmatured life insurance 
contract owned by the debtor under which the insured is the debtor or an individual of 
whom the debtor is dependent.;
12.  Health aids.  Professionally prescribed health aids for the debtor or a dependent 
of the debtor.;
13.  Disability benefits; pensions.  The debtor's right to receive the following:
A.  A social security benefit, unemployment compensation or a federal, state or local 
public assistance benefit, including, but not limited to, the federal earned income tax 
credit and additional child tax credit;
B.  A veterans' benefit;
C.  A disability, illness or unemployment benefit;
D.  Alimony, support or separate maintenance, to the extent reasonably necessary for 
the support of the debtor and any dependent of the debtor; or
E.  A payment or account under a stock bonus, pension, profit-sharing, annuity or 
similar plan or contract on account of illness, disability, death, age or length of service, 
to the extent reasonably necessary for the support of the debtor and any dependent of 
the debtor, unless:
(1)  The plan or contract was established by or under the auspices of an insider that 
employed the debtor at the time the debtor's rights under the plan or contract arose;
(2)  The payment is on account of age or length of service; and
(3)  The plan or contract does not qualify under the United States Internal Revenue 
Code of 1986, Section 401(a), 403(a), 403(b), 408 or 409.;
13-A.  Retirement funds.  Retirement funds to the extent those funds are in a fund or 
account that is exempt from taxation under the United States Internal Revenue Code of 
1986, Section 401, 403, 408, 408A, 414, 457 or 501(a), up to an aggregate value of 
$1,000,000 $1,054,000.  This subsection does not exempt:
A.  Amounts contributed to the account or fund within 120 days before:
(1)  The debtor files for bankruptcy if this exemption is being applied in a federal 
bankruptcy proceeding; or
(2)  If this exemption is being applied in a proceeding other than a federal 
bankruptcy proceeding or for child support or spousal support covered by 
paragraph B, the earlier of the entry of judgment or other ruling against the debtor 
or the issuance of the levy, attachment, garnishment or other execution or order 
against which this exemption is being applied; or
B.  Amounts in the account or fund necessary to satisfy child support or spousal support 
obligations.;
14.  Legal awards; life insurance benefits.  The debtor's right to receive or property 
that is traceable to the following:
A.  An award under a crime victim's reparation law;
B.  A payment on account of the wrongful death of an individual of whom the debtor 
was a dependent, to the extent reasonably necessary for the support of the debtor and 
any dependent of the debtor;
C.  A payment under a life insurance contract that insured the life of an individual of 
whom the debtor was a dependent on the date of the individual's death, to the extent 
reasonably necessary for the support of the debtor and any dependent of the debtor;
D.  A payment, not to exceed $12,500 $23,713, on account of personal bodily injury, 
not including pain and suffering or compensation for actual pecuniary loss, of the 
debtor or an individual of whom the debtor is a dependent; or
E.  A payment in compensation of loss of future earnings of the debtor or an individual 
of whom the debtor is or was a dependent, to the extent reasonably necessary for the 
support of the debtor and any dependent of the debtor.;
15.  Other property.  The debtor's aggregate interest, not to exceed in value $400 
$1,117, in any property, whether or not otherwise exempt under this section.;
16.  Unused residence exemption for other exemptions.  The debtor's interest, equal 
to any unused amount of the exemption provided under subsection 1 but not exceeding 
$6,000 $11,382, in any property exempt under subsections 3 and 5 and subsection 14, 
paragraph D.; and
17.  Cash; bank account.  The debtor's interest in cash or in a deposit account or other 
account of a financial institution, equal to any amount in cash or in the deposit account or 
other account of a financial institution but not exceeding $5,000, or $10,000 if the amount 
is in a joint account. A garnishment order issued against an account in a financial institution 
may not reduce an account balance below $5,000, or $10,000 for an account held jointly.
Beginning January 1, 2022 and each January 1st thereafter, the maximum values for 
exempt property identified in this section except as provided in subsection 1 must be 
adjusted to account for inflation. The adjustment must be measured by the percentage 
change, if any, from January 1st to December 31st of the preceding year in the Consumer 
Price Index for All Urban Consumers, annual city average, for the northeast region, or its 
successor index, as published by the United States Department of Labor, Bureau of Labor 
Statistics or its successor agency.
Sec. 3.  14 MRSA §4426, as amended by PL 2011, c. 203, §1, is further amended to 
read:
§4426.  Exemptions in bankruptcy proceedings
Notwithstanding anything to the contrary in the 11 United States Code, Title 11, 
Section 522(b), a debtor may exempt from property of the debtor's estate under 11 United 
States Code, Title 11, only that property exempt under the 11 United States Code, Title 11, 
Section 522(b)(3)(A) and (B), except that any debtor eligible for a residence exemption 
under section 4422, subsection 1, paragraph B, A-1 may exempt the amount allowed in that 
paragraph.
SUMMARY
This bill makes changes to the provisions governing property of a debtor exempt from 
attachment and execution. 
1.  The bill increases the value of the exemption for a debtor's interest in a residence to 
the median home price in the State, provides that that amount is $225,000 as of December 
2020 and requires that the amount must be adjusted with the median housing value for the 
preceding year beginning January 1, 2022. The bill also permits a debtor an allowance of 
2% of the value of the residence plus an amount equal to the property taxes payable by the 
debtor for the preceding year. 
2.  The bill increases the value of certain property that is exempt from attachment and 
execution and requires that the maximum value is adjusted to account for inflation 
beginning January 1, 2022.  
3.  The bill permits a debtor an allowance of 2% of the manufacturer's suggested  retail 
price for a motor vehicle plus an amount equal to the excise taxes payable by the debtor for 
the preceding year. 
The bill also adds a provision requiring that a court must consider the state minimum 
wage if it is higher than the federal minimum wage when determining the amount of 
installment payments that a debtor must make to a creditor following a money judgment.