Call Now For A Complimentary Case Evaluation: (240) 997-5775

OR Text Us Now (240) 997-5775

Former Chapter 7 Trustee

Kindlund Legal LLC.
  • How Do Maryland Bankruptcy Exemptions Work?

    • By: Kindlund Legal LLC
    • Published: September 10, 2020

    If you decide to file for bankruptcy, you can keep certain personal items. These assets, called exemptions, include your home, retirement accounts and personal items.

    Review the applicable laws in Maryland about exemptions before moving forward with a bankruptcy filing.

    Homestead exemption

    For 2020, Maryland allows you to retain up to $25,150 in your primary residence. The court can order you to use equity exceeding that amount to repay a portion of your debt.

    Professional items

    You can keep up to $5,000 in items you use for your occupation. This may include appliances, tools, instruments, uniforms, gear and books. It does not include work vehicles or inventory.

    Wildcard exemption

    This exemption allows you to keep either $6,000 in cash or property valued at up to $6,000. Most people use this exemption to keep their cars, since Maryland does not have a specific motor vehicle exemption.

    Household items

    Maryland allows you to keep furniture and other household goods valued at a total of up to $1,000. Electronics, clothing, books, appliances and even household pets fall into this category.

    Retirement savings

    You can keep investments held in an eligible retirement plan. This category includes most employer-sponsored plans, IRAs and pensions. Maryland does not

    Personal injury, disability and wrongful death benefits

    If you receive benefits, settlements, legal judgments or other compensation for disability, injury or death of a loved one, you can keep these funds in a bankruptcy filing. Maryland does not place a limit on this exemption category.

    Understanding how Maryland exemptions apply to your case will help inform your decision about whether to file for bankruptcy.

    Jillian Kindlund

    Call Now For A Complimentary Case Evaluation
    (240) 997-5775
    Former Chapter 7 Trustee

    Text Us