Bankruptcy Lawyer Explains Bankruptcy Exemptions in MarylandFiling for bankruptcy can be overwhelming, especially when it comes to understanding exemptions. Though you will deal with exemptions in all bankruptcy proceedings, they are a larger issue for anyone filing for relief through Maryland Chapter 7 bankruptcy. Individuals filing for debt reorganization under Chapter 13 bankruptcy do not usually need to sell off their assets.
Maryland does not allow debtors to opt for federal bankruptcy exemptions instead of those of the state. Below are some bankruptcy exemptions in Maryland.
- Homestead or other property, valued to $21,625. Jointly-filing spouses cannot double the homestead exemption.
- Jointly-owned property is entirely exempt if only one spouse is filing.
- All health and disability benefits
- All settlements, arbitrations and court awards
- Medical insurance benefit deductions from wages and medical insurance payments: up to $145 per week or 75% of disposable weekly wages, whichever is greater
- All benefits from a fraternal benefit society
- Life insurance or annuity proceeds and avails: all, as long as the beneficiary is a child, spouse or other dependant of the insured
Miscellaneous Pension Exemptions
- Federal pension
- All state employee pensions
Personal Property Exemptions
- All perpetual care trust funds
- All burial plots
- All health aids
- Household furnishings, books, pets and clothes, valued to $1,000
- All prepaid college trust funds
- All death benefits for Baltimore police
- All general assistance benefits
- All crime victim compensation
- All unemployment compensation
- All workers compensation
Tools of Your Trade
- Tools, books and clothing valued to $5,000 total
- Wages earned but not yet paid for Kent, Caroline, and Queen Anne’s of Worchester counties: at least 75% of weekly wages or 30 times the federal minimum hourly wage, whichever is greater
- Wages earned but not yet paid for rest of state: at least 75% of the weekly wage or $145, whichever is greater
- Any property or cash up to $6,000 if claimed within 30 days of levy or attachment
- Any real or personal property up to $5,000 in addition to wildcard above
If you are preparing to file for a Maryland bankruptcy, consider reviewing your case with a Falls Church bankruptcy attorney. Bankruptcy law is complicated; working with a knowledgeable professional will improve your odds of having the most successful outcome possible.
The Strong Law Firm serves clients struggling with Maryland, District of Columbia, and Virginia debt. Make an appointment for your free and confidential consultation today. Call our offices at 887-344-8189. Reach us online through the quick contact form.