| < First Meeting of Creditors | Maryland Exemptions | Exemptions Continued > |
MARYLAND EXEMPTIONS
Please Note: The Numbers on this page double October 1st, 2004.
Question: If I file bankruptcy, what will I be left with?
Answer: You will keep the property listed under “Maryland Exemptions,” which, for most people, is everything they currently own.
MARYLAND EXEMPTIONS
Section 11-504 of the Annotated Code of Maryland provides a list of the property your unsecured creditors may not take from you:
- Wearing apparel, books, tools, instruments, or appliances necessary for the practice of any trade or profession except those kept for sale, lease or barter. ($2,500.00 maximum)
Example: Carpenter’s tools, Dentist’s drill, painter’s brushes
Exception: Documented security interest lien
- Money payable in the event of sickness, accident, injury, or death of any person, including compensation for loss of future earnings. (i.e., personal injury settlement)
- Professionally prescribed health aids for the debtor or any dependent of the debtor.
Example: cane, hearing aid, wheel chair (no dollar limit)- The debtor’s interest, not to exceed $500.00 in value, in household furnishings, apparel, appliances, books, animals kept as pets, and other items that are family, or household use of the debtor or any dependent of the debtor.
- $3,000.00 or property of any kind equivalent to $3,000.00
Value: value means the fair market value as of date of filing bankruptcy
- Example: Sony 19" TV, cost: $456.00 three years ago
“value now, who knows, maybe $70.00.
all personal property must be itemized by you, dated as to purchase, cost & valued now
(use “yard sale” values for your items)- Note: $3,000.00 per person
Husband & Wife get $6,000.00: covers a lot (probably everything)
- Auto: If fair market value is less than amount owed, keep it if you continue to make payments or you may buy-out the car for the current value in a lump sum redemption or if fair market value of car is more than amount owed, you may use part of $3,000.00 exemption to protect your equity and keep the car so long as you make payments.
- Real Property or Personal Property: $2,500.00 equity per person ($5,000.00 equity if joint petition of husband & wife)
- Example: John, single, owns a home worth $20,000.00 subject to a $18,000.00 mortgage. His equity is $2,000.00. As long as he continues to make his mortgage payments on time, he will not be in default on his mortgage, his bank cannot foreclose, and he can exempt his equity in the home from his creditors’ claims.
- Example: Sam and Mary own a $60,000.00 home subject to a first mortgage of $30,000.00 and a second mortgage of $25,000.00 (total=$55,000.00). As long as payments are made on the home (both mortgages), they may keep their home and exempt their $5,000.00 equity in the home. Appraisals will be necessary. If they fall behind on their mortgage payments, their home will be sold.
- Other Exemptions: cash value life insurance, social security benefits, military retirement benefits, unemployment insurance benefits, workmen’s compensation benefits, certain IRA’s, grave lot.
SUMMARY:
SINGLE:
$ 1000.00 Household goods
$ 6,000.00 Anything
$ 5,000.00 Anything Total: $12,000.00MARRIED:
$ 2,000.00 Household goods
$ 12,000.00 Anything
$ 10,000.00 Anything Total: $24,000.00Plus: trade or professional items worth up to $2,500.00.
This summary will be explained to you by Mr. Gordon. Needless to say, bankruptcy law, security interests, mortgages and liens are very complex and it is impossible to summarize every aspect of the law here. Keep this for future reference.
