MARYLAND BANKRUPTCY LAW:

Maryland Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Maryland Bankruptcy Statistics: In 2009, 26,264 bankruptcies were filed in Maryland. Business Bankruptcies accounted for tiny fraction of the total at 923 bankruptcies or less than 3%.

Maryland State Bankruptcy Exemptions:

Homestead

There are no homestead exceptions available when filing bankruptcy in Maryland.

However, Maryland recognizes a form of property ownership called “tenancy by the entirety,” which is available to married couples. If a married couple owns their home as a tenancy by the entirety and the debt was incurred by only one of the spouses, the entire home may be exempt.

Personal Property

Personal property listed below is entirely exempt when filing bankruptcy in Maryland:

1. Burial plot
2. Perpetual care trust funds
3. Professionally prescribed health aids
4. Prepaid college trust funds
5. Damages recovered for lost future earnings

The following personal property is exempt for a total of $1,000:

1. Household goods
2. Furniture
3. Appliances
4. Books
5. Pets
6. Clothing

Insurance

The following insurance benefits are entirely exempt:

1. Health or disability benefits, including settlements, arbitration and court awards
2. Life insurance/annuity proceeds and avails are entirely exempt if the beneficiary is the child, spouse, or dependent of the insured.
3. Fraternal benefit society benefits

Pensions

In general, federal exemptions do not apply in Maryland, but the federal pension exemptions can be used.

Pension plans for state employees are entirely exempt.

Public Benefits

When filing bankruptcy in Maryland, the following public benefits are entirely exempt:

1. Death benefits for Baltimore police
2. General assistance benefits
3. Crime victims' compensation benefits
4. Unemployment compensation benefits
5. Workers' compensation benefits

Tools of the Trade

The exemption is limited to $5000. The following items are examples of items that can be included under this exemption: tools, instruments, appliances, books and clothing.

Wages

Wages earned but not paid in the following counties are exempt at a rate of 75% of weekly earnings or 30 times the federal minimum hourly wage, whichever is greater: Kent, Caroline, and Queen Anne's of Worchester.

Wages in the rest of the Maryland exempt at a rate of 75% of weekly earnings or $145, whichever is greater.

Note: Medical insurance payments which are directly deducted from wages are exempt in bankruptcy, and earnings for purpose of bankruptcy exemptions are calculated after medical insurance payments are deducted.

Miscellaneous

Child support paid or payable in accordance to a court order is exempt from bankruptcy.

Wildcard

Personal property or cash valued up to $6,000, claimed within 30 days of levy or attachment is exempt when filing bankruptcy in Maryland. An additional $5000 may be exempt as well on either real or personal property (husband and wife cannot both individually claim this exemption on real property).

Federal Bankruptcy Exemptions: No

Maryland Bankruptcy Courts

United States Bankruptcy Court for Maryland has jurisdiction over the entire state.