When you pursue Chapter 7 or Chapter 13 bankruptcy relief, your creditors will most likely attempt to liquidate your assets to cover as much of your debt as possible. A combination of state and federal laws determines what you must include in your “bankruptcy estate” and what may be exempted from liquidation.
At the Law Firm of Kevin D. Judd, we are committed to helping our clients overcome difficulties and achieve financial freedom. Our attorney has over 25 years of experience and can help you take full advantage of bankruptcy exemptions to protect your assets in Washington, D.C. We will walk you through the applicable exemption schedule before you file so you have a complete understanding of what you can expect to keep, and our team will always work to safeguard as much of your property as possible.
If you reside in Maryland, you will not be able to take advantage of federal bankruptcy exemptions. Maryland does offer its own exemption schedule, however.
Bankruptcy exemptions in Maryland include:
- The Homestead Exemption. You can exempt up to $25,150 of equity in your principal residence.
- Personal Property Exemption. You may exempt up to $5,000 of total value in tools of your trade; up to $1,000 of total value in clothing, furniture, animals, books, and appliances; and up to $5,000 of total value in miscellaneous personal property. You can also fully exempt prescribed health aids and a burial plot.
- Wages and Earnings Exemption. You may exempt up to 75% of disposable income or $145 per week, whichever amount is greater. In certain counties, you can exempt up to 75% of disposable income or 30 times the federal minimum wage per week, whichever amount is greater.
- The Child Support and Alimony Exemption. You may fully exempt the funds needed to pay child support obligations. You can exempt funds needed for alimony at an amount equal to your wage exemption.
- The Public Benefits Exemption. You may fully exempt monetary payments from government programs, including unemployment benefits, workers’ compensation, and crime victims’ compensation.
- Pension and Retirement Benefits Exemption. Many pensions and retirement accounts can be fully exempted.
- The Insurance Exemption. You may fully exempt most types of insurance proceeds, settlement amounts, and court awards.
- The Wildcard Exemption. You can apply up to $6,000 of value toward cash or any other type of non-exempt property.
Note that Maryland does not offer a motor vehicle exemption. If you are considering filing for bankruptcy in either Maryland or Washington, D.C., our team at the Law Firm of Kevin D. Judd can carefully analyze your case and review your exemption options.
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