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