Maine Bankruptcy Exemptions
How to avoid property loss with Maine bankruptcy exemption planning
Property seizures are rare in liquidation cases filed under Chapter 7. This rarity is not the result of a failure on behalf of the court. Debtors must carefully plan each case, including a comprehensive review of the Maine bankruptcy exemptions, to identify in advance the potential for forfeiture, turn-over or seizure. If any of these losses are likely, each debtor has an extensive array of options available under the Code to mitigate or prevent property loss. Due diligence is the essence of success when filing, and will prevent unnecessary property loss.
Transfer limitations under the Code
A sequential limitation appears in the Code, disallowing certain purchases, transfers and sales within prescribed time limits. Prohibited transactions may be subject to limitations for as little as 7 days, and range up to one year under the federal fraudulent conveyances statute. These laws are designed to prevent bankruptcy abuse in the months before filing, yet also provide debtors with a blueprint for permissible planning in accordance with strict construction and interpretation of laws established by Congress.