Source: http://www.nolo.com/legal-encyclopedia/maryland-bankruptcy-exemptions.html
Timestamp: 2017-01-22 13:52:53
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Maryland Bankruptcy Exemptions | Nolo.com
Legal TopicsBankruptcyBankruptcy Information For Your StateMaryland Bankruptcy Information
Learn what property you can keep in bankruptcy with Maryland's bankruptcy exemptions.
If you file for Chapter 7 bankruptcy in Maryland, you can use Maryland’s bankruptcy exemptions to protect your property. Maryland’s bankruptcy exemptions also play a role in Chapter 13 bankruptcy. Continue reading to learn about what property is protected by Maryland’s bankruptcy exemptions.
The Bankruptcy Exemptions in Maryland
Exemptions are specific laws that allow you to protect certain property from your creditors, such as your car or home. If you file a Chapter 7 bankruptcy, you can keep the items that are protected by Maryland’s bankruptcy exemptions. If you file for Chapter 13 bankruptcy, Maryland’s bankruptcy exemptions play a role in how much you repay your creditors through your Chapter 13 plan.
Maryland Requires Debtors to Use State Exemptions
Maryland has its own exemption laws and has opted out of the federal bankruptcy exemptions, which means that when you file a bankruptcy in Maryland, you may only exempt property using the Maryland exemptions. You may, however, also use any of the applicable federal non-bankruptcy exemptions. The federal non-bankruptcy exemptions protect property such as federal and military retirement funds and veteran’s benefits.
Married Couples May Double Maryland Exemptions
Married couples that file a joint bankruptcy in Maryland are allowed to “double” the exemptions. This means that you and your spouse may each claim the full exemption amount for any property belonging to you. You may only claim an exemption and protect property that belongs to you.
Commonly Used Maryland Bankruptcy Exemptions
Public assistance benefits - Human Services § 5-407(a)(1),(2)
Cash or property up to $6,000 in value. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(b)(5) and an additional $5,000 of value in personal property. Md. Code Ann. [Cts. & Jud. Proc] § 11-504(f)(1)(i)(1). (To learn more,
Maryland Wildcard Exemption.)
Life insurance or annuity contract proceeds when beneficiary is the insured's dependent, child, or spouse. Md. Code Ann., [Ins.] § 16-111 (a); Md. Code Ann., [Est. & Trusts] § 8-115
In re Stine, 360
F.3d 455 (4th Cir 2004); Bank
of America v. Stine, 379 Md. 76, 839 A.2d 727, 729 (2003)
Miscellaneous -- Personal Injury, Wrongful Death, Lost Future Earnings Awards
Ssettlements or awards that you receive as
the result of any person's injury or illness or wrongful death; lawsuit or settlement awards for lost future
earnings. Md. Code Ann., [Cts. &
Jud. Proc.] § 11-504 (b)(2).
Confirming the Maryland Bankruptcy Exemptions
This list includes some of the more common Maryland bankruptcy exemptions, but there are numerous other exemptions available to protect specific property. You can verify the current exemption amounts at the website of the Maryland General Assembly or by checking the statutes yourself. (To learn how to do this, see Nolo’s Legal Research Center). Share on Google Plus