Maryland Bankruptcy Exemptions 2021
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Written by Upsolve Team.
Reviewed September 29, 2021
It's important to understand what the exemptions for Maryland are and how they're most often used in a bankruptcy case.
How Do Exemptions Work?
When you file for Chapter 7 bankruptcy, one of the biggest questions is whether or not you will be able to keep your property.
That depends on which property exemptions you can use on your bankruptcy forms. They are called exemptions because they “exempt” -- or “excuse” -- certain property from being taken. In most cases, exemptions protect most day-to-day items that you own, unless you have expensive property like a house or a car.
Certain exemptions protect entire categories of property like retirements accounts, regardless of value. Other exemptions only protect specific property like a vehicle up to a certain value.
If you're looking for a deep understanding of bankruptcy exemptions, read this article.
Does Maryland allow federal exemptions?
Maryland does not recognize the federal exemptions.
Every state has its own set of property exemptions. And some states also allow you choose between their exemptions and a set of federal bankruptcy exemptions. When they do, they will generally let you to choose the system that is the best fit for you. Although some states allow you to use the federal bankruptcy exemptions, others do not.
Maryland Exemptions
Md. Code Ann., [Bus. Reg.] § 5-603
Most people use Md. Code Ann., [Bus. Reg.] § 5-603 to cover perpetual care trust fund. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Com. Law] § 15-601.1; Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (e)
Most people use Md. Code Ann., [Com. Law] § 15-601.1; Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (e) to cover earned unpaid wages. For single debtors filing, it has a coverage limit of $145.
Md. Code Ann., [Corps. & Ass'ns] §9A-502; Md. Code Ann., [Cts. & Jud. Proc.] 9A-504 (a)
Most people use Md. Code Ann., [Corps. & Ass'ns] §9A-502; Md. Code Ann., [Cts. & Jud. Proc.] 9A-504 (a) to cover partnership property. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Crim. Proc.] § 11-816 (b)
Most people use Md. Code Ann., [Crim. Proc.] § 11-816 (b) to cover crime victim compensation. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (7)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (7) to cover alimony (to the same extent wages are exempt). For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(1)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(1) to cover tools of trade. For single debtors filing, it has a coverage limit of $5,000.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(2)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(2) to cover disability or health benefits. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(2)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(2) to cover lost earnings recovery. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(3)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(3) to cover health aids. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(4)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(4) to cover household goods, electronics, books, equipment for sports and hobbies, clothing, and pets. For single debtors filing, it has a coverage limit of $1,000.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(5)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(5) to cover cash (claimed within thirty days of levy). For single debtors filing, it has a coverage limit of $6,000.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(6)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(6) to cover child support. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (h)(1)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (h)(1) to cover erisa benefits and iras. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Educ.] § 18-1913
Most people use Md. Code Ann., [Educ.] § 18-1913 to cover prepaid college trust. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Human Serv. Art.] § 5-407(a)(1),(2)
Most people use Md. Code Ann., [Human Serv. Art.] § 5-407(a)(1),(2) to cover public assistance. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Ins.] § 16-111 (a)
Most people use Md. Code Ann., [Ins.] § 16-111 (a) to cover life insurance (beneficiary is dependent). For single debtors filing, it has no coverage limit.
Md. Code Ann., [Ins.] § 8-431; Md. Code Ann., [Est. & Trusts] § 8-115
Most people use Md. Code Ann., [Ins.] § 8-431; Md. Code Ann., [Est. & Trusts] § 8-115 to cover fraternal benefit. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Lab. & Empl.] § 8-106
Most people use Md. Code Ann., [Lab. & Empl.] § 8-106 to cover unemployment compensation. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Lab. & Empl.] § 9-732
Most people use Md. Code Ann., [Lab. & Empl.] § 9-732 to cover workers compensation. For single debtors filing, it has no coverage limit.
Md. Code Ann., [State Pers. & Pen.] § 21-502
Most people use Md. Code Ann., [State Pers. & Pen.] § 21-502 to cover state employee retirement. For single debtors filing, it has no coverage limit.
11 U.S.C. § 522(b)(3)(C)
Most people use 11 U.S.C. § 522(b)(3)(C) to cover tax exempt retirement accounts. For single debtors filing, it has no coverage limit.
5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2)
Most people use 5 U.S.C. §§ 8437(e)(g), 11 U.S.C. § 541(c)(2) to cover thrift savings plan. For single debtors filing, it has no coverage limit.
Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(5); Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (f)(1)(i)(1)
Most people use Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (b)(5); Md. Code Ann., [Cts. & Jud. Proc.] § 11-504 (f)(1)(i)(1) to cover wildcard. For single debtors filing, it has a coverage limit of $11,000.
