Sec. 1. 11 MRSA §9-1600 is enacted to read:

§9-1600.__Delay of foreclosure following bankruptcy

Notwithstanding any agreement or law to the contrary, a secured party may not initiate judicial proceedings to foreclose a secured interest, take possession of collateral used as security or otherwise enforce rights against such collateral until at least 180 days after the conclusion of a proceeding regarding the creditor under chapter 11 or chapter 13 of the United States Bankruptcy Code, 11 United States Code.__This section applies only if the debtor is in default for less than 90 days.

Sec. 2. 14 MRSA §6200 is enacted to read:

§6200.__Delay of foreclosure following bankruptcy

Notwithstanding any other law, a secured party may not take any action under this chapter to foreclose a mortgage secured by real property until at least 180 days after the conclusion of a proceeding regarding the mortgagor under chapter 11 or chapter 13 of the United States Bankruptcy Code, 11 United States Code.__This section applies only if the mortgagor is in default for less than 90 days.

SUMMARY

This bill prohibits a secured creditor from foreclosing on real estate or other property used as collateral for at least 180 days after the conclusion of "chapter 11" or "chapter 13" bankruptcy proceedings relating to the creditor under the United States Bankruptcy Code. This delay allows the business or individual time to stabilize the finances of the person or business.