Common Maryland Bankruptcy Exemptions to Be Aware Of
If you wish to file for bankruptcy in Maryland, but would like to protect your property when doing so, you need to learn about Maryland Bankruptcy Exemptions. These exemptions apply when you file for Chapter 7 and also play a part in a Chapter 13 bankruptcy. Knowing the law and speaking to a lawyer helps to ensure you know which option is right for you and what you may retain during the proceeding.
Maryland Bankruptcy Exemptions are designed to allow you to retain certain property that creditors may try to take. This may include your home or your car. Although many states make use of the federal bankruptcy exemptions, they don’t apply in Maryland as the state has come up with its own laws. One thing to be aware of is that you may use federal non-bankruptcy exemptions in your case, as they protect things such as veteran’s benefits and military and federal retirement funds.
In addition, if you are married, you’ll find that you can claim double the exemptions. You and your spouse may each claim the items which belong to you, although you can’t claim belongings of your spouse. Again, an attorney can be of great assistance in determining what you may and may not keep.
In regards to your home, you can keep as much as $22,975 of equity in the home. This applies to any real property you own, including a home, co-op or condominium. With regards to the homestead, this exemption may only be claimed once in an eight-year period and it cannot be doubled even if you have a spouse.
Personal property becomes a little more complicated. You may retain possession of any health aids prescribed by a medical professional, items used by your or your dependents such as clothing and furnishings, up to $5,000 in tools you use for employment, including inventory and clothing, and your burial plot. There is no exemption in the state for a motor vehicle, but wild card exemptions may allow you to keep any equity you have built up in your car.
Public benefits, retirement benefits, insurance and damages and miscellaneous awards also fall under Maryland Bankruptcy Exemptions. There are numerous others as well. Speak to an attorney to determine what you will be allowed to keep following the bankruptcy and what you must forfeit. He or she can provide you with personalized advice for your case.
