Maryland Bankruptcy

What Are The Maryland Bankruptcy Exemptions?

Maryland law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a Maryland bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Maryland. In general, the major Maryland bankruptcy exemptions include:

GENERAL MARYLAND EXEMPTIONS
Real Estate (the Homestead Exemption) Up to $5,000 in real or personal property can be protected.
Automobiles There is no specific automobile exemption in Maryland.
Other Property Up The debtor’s interest, not to exceed $1,000 in value, in household furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, and other items that are held primarily for the personal, family, or household use; cash or property of any kind equivalent in value to $6,000; and 100 percent of the value of professionally described health aids.
Go to the complete list of Maryland bankruptcy exemptions

Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.

Which state’s exemption laws apply in your bankruptcy?

Generally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.

If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.

If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.

Is Maryland a Community Property State?

No, Maryland is not a community property state. Because it is not a community property state, you will be responsible for your spouse’s debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.

How did your senator vote on the new bankruptcy laws?

Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?

Mikulski (D-MD) — YEA
Sarbanes (D-MD) — YEA

Maryland Bankruptcy Court Locations:

Baltimore Division
Garmatz Federal Courthouse
101 West Lombard Street
Suite 8308
Baltimore, MD 21201
(410) 962-2688

Federal Courthouse
6500 Cherrywood Lane
Suite 300
Greenbelt, MD 20770
(301) 344-8018

Salisbury Courthouse
U.S. Post Office Building
129 East Main Street, Room 104
Salisbury, Md 21801

Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.

Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.