Greenbelt Bankruptcy Exemptions Lawyer

Attorney in Greenbelt Addressing Maryland Bankruptcy Exemptions

When considering your options for bankruptcy and debt relief, some of the biggest concerns you may have may be related to your property and assets. You may worry that you could lose your home or be required to turn over money or other property during the bankruptcy process. Fortunately, the bankruptcy laws provide protections called exemptions that will allow you to keep certain property as you take steps to eliminate or reorganize your debts. In Maryland, specific bankruptcy exemptions apply to protect your home, personal property, wages, and other critical assets. Understanding and applying these exemptions correctly can make a significant difference in your financial future.

At The Law Office of Donald L. Bell, we help people in Greenbelt and other nearby cities navigate the bankruptcy process and make the best use of the available exemptions to protect their assets. Our experienced bankruptcy attorney works closely with clients to ensure that they can retain as much of their property as possible while achieving debt relief through Chapter 7 or Chapter 13 bankruptcy.

Overview of Maryland Bankruptcy Exemptions

When filing for bankruptcy in Maryland, specific exemptions are provided under state law. These exemptions allow you to protect certain property from liquidation during a Chapter 7 bankruptcy. Below is a detailed overview of the bankruptcy exemptions available in Maryland:

Homestead Exemption

This exemption is designed to protect the equity in your home. Under Maryland law, you can exempt up to $25,150 of equity in your primary residence. This exemption applies to real estate property, including homes, condos, and mobile homes.

If you own your home and have substantial equity, the homestead exemption can prevent you from losing it during bankruptcy. However, if your equity exceeds the homestead exemption limit, your home may be at risk in a Chapter 7 bankruptcy. In these situations, a Chapter 13 bankruptcy may be preferable to ensure that you will be able to maintain ownership of your home.

Personal Property Exemptions

Maryland offers exemptions for a variety of different types of personal property. These exemptions allow you to keep the essential items needed to maintain your daily life and continue working. Key personal property exemptions include:

• Clothing and Household Goods: You can exempt up to $1,000 in household items, including furniture, appliances, books, and pets.
• Tools of the Trade: Maryland allows you to exempt up to $5,000 worth of tools, equipment, or other items necessary for your occupation.
• Health Aids: An unlimited exemption applies to medical equipment or other items that have been prescribed by medical professionals.
• Other Personal Property: A "wildcard" exemption of up to $5,000 can be used for any property you own, with the exception of real estate. Since Maryland does not provide a motor vehicle exemption, this exemption may be used for a vehicle.

Disability Benefits

If you receive public benefits for a disability, such as Social Security Disability Insurance, or any other health benefits or settlements, these benefits are generally exempt during bankruptcy. This ensures that you can continue to receive the payments you and your family rely on without interruption.

Life Insurance

In general, life insurance policies are protected in Maryland bankruptcy filings. If the policyholder's spouse, children, or other dependents are the beneficiaries of a life insurance policy, the cash value of that policy is exempt.

Wages

Maryland also provides protection for wages, ensuring that you will be able to keep most of your earnings when you file for bankruptcy. In general, up to 75 percent of your disposable income is exempt from garnishment. This protection helps ensure that you can continue to meet basic living expenses even while going through bankruptcy.

Retirement Benefits

Retirement accounts and other benefits are typically exempt from bankruptcy in Maryland. This ensures that you will be able to keep your 401(k), IRA, or pension. This exemption can be critical for preserving your long-term financial security, particularly if you are nearing retirement and have worked for many years to build your savings.

Wildcard Exemption

Maryland provides an additional exemption that allows you to protect any property that does not fall under a specific exemption category. This can be particularly helpful if you need to protect additional personal property or assets. The wildcard exemption in Maryland is $6,000, and it may be applied to the equity in your home or other personal property. This flexibility may allow you to protect property that may not otherwise be covered under Maryland's other exemption categories.

Contact Our Greenbelt Bankruptcy Lawyer for Help With Exemptions

At The Law Office of Donald L. Bell, we understand that filing for bankruptcy can feel overwhelming, especially when it comes to understanding how to protect your assets. The good news is that Maryland's bankruptcy exemptions provide essential protections that may allow you to keep your most important property, from your home to your retirement savings. Our bankruptcy attorney has extensive experience helping clients in Greenbelt and the surrounding communities navigate the bankruptcy process and ensure that they take full advantage of the available exemptions. Contact us at 301-614-0535 to arrange a free consultation and begin taking steps to protect your property as you resolve issues related to your debts.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.