Maryland Bankruptcy Exemptions: What You Get to Keep

Here is the single most important Maryland-specific rule: Maryland has opted out of the federal bankruptcy exemption system. Unlike about a dozen states that let filers choose between the federal exemption list in 11 U.S.C. § 522(d) and the state list, Maryland does not give you that choice. If you live in Maryland and file Chapter 7 or Chapter 13, you must use Maryland's state exemptions, found mainly in the Maryland Code, Courts and Judicial Proceedings (CJP) § 11-504, together with related property and pension statutes. The one carve-out everyone uses is that federal non-bankruptcy exemptions (such as protections for Social Security, certain veterans' and federal pension benefits) still apply on top of the Maryland list.

This matters because Maryland's exemptions look very different from the federal ones. There is a generous cash-and-property wildcard, strong protection for married couples who own a home together, and—notably—no dedicated motor vehicle exemption at all. Knowing where Maryland is strong and where it is weak is the difference between keeping your property and surrendering it.

The Maryland homestead exemption

Maryland protects equity in owner-occupied residential real property (or a co-op or mobile home you live in) under CJP § 11-504(f). The exemption applies only to property where you actually live—it does not shield a rental or vacation home.

The dollar amount is adjusted for inflation every three years, so it is not a fixed number you can rely on from memory. As of 2026 the homestead figure sits in roughly the mid-to-upper $20,000 range per filing, but because it changes on a triennial schedule you should confirm the current amount directly in CJP § 11-504(f) or with a Maryland bankruptcy attorney before you rely on it. A key limit: a married couple filing jointly generally cannot stack two separate homestead exemptions on the same property, so do not assume the amount doubles.

For many Maryland homeowners, the more powerful protection is not the homestead statute at all but tenancy by the entirety (discussed below).

The wildcard exemption (and your car)

Maryland's most useful tool is its wildcard exemption under CJP § 11-504(b)(5): you may exempt cash or property of any kind worth up to $6,000. There is a catch built into the statute—you generally must claim this exemption within 30 days of the levy, attachment, or the filing that triggers the claim, so timing and proper paperwork matter.

Because Maryland has no separate motor vehicle exemption, the wildcard is how most filers protect a car. If your vehicle equity (its value minus what you still owe) is under the wildcard amount, you can keep it. If you have an expensive paid-off car, the wildcard may not be enough, and you should plan carefully—this is one of the biggest traps for Maryland filers who assume their state works like neighbors that offer a dedicated $3,000–$5,000 car exemption.

Personal property, tools, and other exemptions

Beyond the wildcard, Maryland law protects several specific categories under CJP § 11-504(b):

• Household goods and apparel: wearing apparel, household furnishings, household goods, appliances, books, animals kept as pets, and similar items, up to $1,000 in total value.
• Tools of the trade: books, tools, instruments, or appliances (other than a motor vehicle) necessary for your trade or profession, up to $5,000.
• Health aids: professionally prescribed health aids necessary for you or a dependent—no dollar cap.
• Money for sickness, accident, injury, or death: proceeds and benefits from health, disability, or accident insurance, and certain wrongful-death and similar payments.

Retirement savings are also well protected. Most ERISA-qualified pensions, 401(k)s, and IRAs are exempt under CJP § 11-504(h) and overlapping federal law, although there are dollar limits on traditional and Roth IRAs under the federal Bankruptcy Code that apply nationwide.

Tenancy by the entirety: Maryland's hidden shield

Maryland recognizes tenancy by the entirety, a form of joint ownership available only to married couples. Property held this way is generally not reachable by creditors of only one spouse. So if just one spouse files bankruptcy and the debts are individual (not joint), a home or bank account titled as tenants by the entirety can be effectively protected far beyond the dollar limit of the homestead statute. This protection collapses, however, when both spouses owe the same creditor (a joint debt) or when both spouses file together. Because the rules here are technical and fact-specific, this is an area where professional advice pays for itself.

How this compares to federal law

The federal exemption list in 11 U.S.C. § 522(d) includes a specific motor vehicle exemption and a homestead figure that is uniform nationwide. Maryland filers cannot use that list. The trade-off is real: Maryland gives you a larger flexible wildcard and powerful tenancy-by-the-entirety protection, but no built-in car exemption and a homestead amount that may be lower than the federal one for some filers. Separately, federal protections that exist outside the Bankruptcy Code—such as the anti-garnishment shield for Social Security benefits—still apply to Maryland residents regardless of the state's opt-out.

Remember that exemptions are different from the federal wage-garnishment limits you may have heard about. The federal cap protects the greater of 75% of disposable earnings or 30 times the federal minimum wage from ordinary garnishment; Maryland has its own garnishment formula that, in most counties, protects the greater of 75% of disposable wages or $145 times the number of weeks. Those wage rules govern collection lawsuits, not what you keep in bankruptcy, but they often come up in the same financial crisis.

How to claim and enforce your exemptions

Exemptions are not automatic. In a bankruptcy case you must list each item and the exemption you are claiming on Schedule C, citing the correct Maryland statute. Creditors or the trustee can object, and if no one objects within the deadline, your claimed exemptions are generally locked in. Outside bankruptcy—when a creditor levies or garnishes after a judgment—you typically must file a written claim of exemption with the court, often within a short window (frequently 30 days), to assert your rights. Missing that deadline can mean losing property you were entitled to keep.

Where to verify Maryland's rules

Because the homestead figure adjusts for inflation and the legislature periodically amends these statutes, always confirm the current numbers before acting. Read CJP § 11-504 in the official Maryland Code, and for consumer rights generally, contact the Maryland Office of the Attorney General, Consumer Protection Division, which publishes guidance and handles consumer complaints. The U.S. Bankruptcy Court for the District of Maryland and a licensed Maryland bankruptcy attorney or an approved nonprofit credit counselor can confirm how the exemptions apply to your specific property. Given how much is at stake—your home, your car, and your savings—getting the figures verified against the current statute is essential before you file.

Official Maryland Sources

This page is based on Maryland law. Limits and deadlines change — verify the current details directly with the official Maryland sources below. This is general legal information, not legal advice.

• Office of the Attorney General of Maryland, Consumer Protection Division — official Maryland agency.
• File a Consumer/Business Complaint - Maryland Attorney General Consumer Protection Division
• Maryland Commercial Law Code, Title 13 Consumer Protection Act, Section 13-301 (Unfair, Abusive, or Deceptive Trade Practices)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Maryland’s own rules.