Using Bankruptcy Exemptions In Maryland

Maryland bankruptcy exemptions are an important part of the bankruptcy filing process. Those who file bankruptcy will need to completely disclose with the bankruptcy courts all information related to their assets. Further, the individual needs to show creditors that he or she is unable to pay back these debts because it would cause significant financial hardship. One of the best ways to protect property, then, is through the use of bankruptcy exemptions. These differ from state to state, though.

Understanding Maryland Exemptions

Under Maryland bankruptcy exemptions, there are certain types of property that may be protected from creditors during the bankruptcy process. This property is protected if the individual claims an exemption on it. When filing out documentation that outlines the individual's assets, the individual must point to the specific bankruptcy exemptions he or she is taking to protect the property from the courts.

Take a look at some of the Maryland bankruptcy exemptions and how they can help you to protect your property.

If you have insurance products, these may be protected under the exemptions. For those with disability or health benefits, settlements or court awards, the protection is unlimited. Life insurance and annuity contract proceeds are also protected.
In Maryland, there is no homestead exemption. This means there it is possible that a home that is valuable enough (after costs of selling the home are considered) may be sold to repay creditors. However, there are various methods attorneys can use to help reduce the loss of a home, such as applying other exemptions towards the value.
Most types of personal property are protected, including appliances and household goods with a current value of no more than $1000 in total.
Public benefits are also protected, including any unemployment compensation, crime restitution and unemployment compensation.
Tools of the trade are also protected, including items you use to work with like books and tools, up to a value of $5000 in total.

Also keep in mind that the state of Maryland does offer a wild card exemption that may be applied towards various types of property not otherwise exempt. UP to $6000 in cash or property is protected and $5000 of real property is protected in addition to any exemptions listed above.

When to Hire an Attorney

There are some situations in which an individual will want to hire an attorney to get the most out of Maryland bankruptcy exemptions. The attorney will work hand in hand with the filer to ensure as much of his or her property is protected.

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