Exemptions in a Maryland Bankruptcy
Chapter 7 requires the trustee to sell your nonexempt assets and use the proceeds to pay off your creditors. However, many Chapter 7 filings are “no-asset” cases, which means filers are able to protect all of their property by claiming exemptions.
In Maryland, you are allowed to keep approximately $12,000 worth of personal property (of the types specified below), plus some other types of property. The Maryland exemptions include:
- Crime victims’ compensation awards
- Fraternal benefit society benefits
- $5,000 of tools of trade/profession
- Miscellaneous benefits, such as sickness, accident, injury, death, etc.
- Professionally prescribed health aids
- $6,000 of property or cash back from attachment
- Child support payments
- $5,000 of real or personal property interests
- Pension and retirement
- Public assistance
- Unemployment compensation
- Workers’ compensation
- Partnership property
- $1,000 of family clothes, furnishings, books, and pets (valued at replacement value, which is the price a store would charge for the property of that kind, considering the age and condition of the property)
In the District of Columbia, you have the option of using federal exemptions or the DC exemptions. Our firm can help you decide which set of exemptions is the most beneficial to your case. It is important to remember that all exemptions are subject to the specifics of your situation.