Exempting Property In Bankruptcy

A couple of common misperceptions of the bankruptcy process are that: 1. a person filing bankruptcy has to give up their property or that 2. a person filing bankruptcy can keep an unlimited amount of property and not have to repay debt. The reality is that you can generally keep all property which you can exempt and which is not the subject of a lien (i.e. mortgage or car loan). Additionally, you can keep more property if you pay for it in your bankruptcy plan.

Generally, Maryland exemptions are:

Your Home

You may exempt $22,625 for a home which you live in. Presently, it is unclear as to whether this exemption may be used for both a husband and wife. If you and your spouse bought a home together it is exempt from your individual, but not your joint creditors.


$6,000 in cash or any property may be exempt.

Property besides Houses, buildings or land

Up to $5,000 total in any property plus you may exempt up to $1,000 total in Clothing, household goods, furnishings, appliances, books or pets. Exemptions are unlimited for a burial plot, a perpetual care trust fund, and prepaid college trust funds; health aids; personal injury recoveries, 75% of net wages, 75% of net alimony, child support, Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans), unemployment compensation, workers' compensation, Baltimore police death benefits, crime victims' compensation, public assistance benefits, tools of trade (this can include motor vehicles) up to $5,000, fraternal benefit society benefits, certain life insurance or annuity contract proceeds, dividends, interest, loan, cash, or surrender value if beneficiary is a dependent of the insured, medical benefits deducted from wages as well as medical insurance payments, disability or health benefits.

No Comments

Leave a comment
Comment Information
  • Lead Counsel
  • MSBA
  • sl-badge
Email Us For A Response

How Can We Help You

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Frederick Office
170 West Patrick Street
Frederick, Maryland 21701

Phone: 301-732-7675
Phone: 301-668-5111
Fax: 301-668-2770
Frederick Law Office Map

Silver Spring Office
12114B Heritage Park Circle
Silver Spring, Maryland 20906

Phone: 301-732-7675
Phone: 240-833-2284
Fax: 301-942-8296
Silver Spring Law Office Map

Upper Marlboro Office
14452 Old Mill Road
Suite #301
Upper Marlboro, Maryland 20772

Phone: 301-732-7675
Phone: 301-736-5432
Upper Marlboro Law Office Map