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Maryland Bankruptcy Exemptions: What You Can Keep in 2026
The numbers matter. The plan matters more. See how exemptions stack, how married couples can protect a home, and when equity pushes a case away from Chapter 7.
Short answer
Maryland generally makes domiciled filers use state exemptions. You usually do not get the federal bankruptcy exemption set here. After SB 939, most cases turn on the homestead, the two flexible exemptions, and (for married couples) tenancy by the entireties.
Maryland has no motor-vehicle exemption. Cars usually have to fit inside the $6,000 general wildcard and the $5,000 bankruptcy personal-property exemption.
Reviewed June 11, 2026Law effective June 1, 2026Next CPI update July 1, 2027 (FY 2028 CPI adjustment)
Current law: Maryland bankruptcy cases filed on or after June 1, 2026 use a $125,000 bankruptcy homestead under § 11-504(f)(1)(ii). Multiple same-property claims in one bankruptcy case are capped at $125,000 total under § 11-504(f)(1)(iii).
Sources: Md. Code, Cts. & Jud. Proc. § 11-504; 2026 Md. Laws Ch. 400 (SB 939); 11 U.S.C. § 522.
Update status: Reviewed June 11, 2026. Reflects Maryland bankruptcy law effective June 1, 2026. This is a simplified planning estimate; title, domicile, TBE, liens, joint debt, and trustee review can change the result.
Homestead exemption
$125,000
of equity in owner-occupied residential real property for bankruptcy cases filed on or after June 1, 2026. Multiple claimants in the same case for the same property cannot exceed $125,000 total. Cts. & Jud. Proc. § 11-504(f)(1)(i)2, (ii)-(iii)
Maryland exemptions at a glance
Maryland bankruptcy exemptions table
Check the table for the legal limits first, then use the estimator to see how those limits may apply to your home, car, cash, and other property. For cases filed on or after June 1, 2026, SB 939 sets the bankruptcy homestead at $125,000 and caps multiple same-property claims at $125,000 total.
| Exemption | Statute | One filer | Joint filers |
|---|---|---|---|
| Homestead (bankruptcy) Owner-occupied home, condo, co-op, converted manufactured home, or residential property held in a revocable trust. Multiple same-property claims in one case share the total cap. |
§ 11-504(f)(1)(i)2, (ii)-(iii) | $125,000 | up to $125,000 total |
| General wildcard Cash or property of any kind. When the automatic $500 deposit-account protection and this wildcard are both used, the combined amount cannot exceed $6,000. |
§ 11-504(b)(6) | $6,000 | Up to $12,000 if both filers qualify* |
| Bankruptcy personal property Personal property only. Can help protect car equity, bank balances, refunds, and other non-real-estate assets. |
§ 11-504(f)(1)(i)1 | $5,000 | Up to $10,000 if both filers qualify* |
| Tools of the trade Clothing, books, tools, instruments, and appliances necessary for work. |
§ 11-504(b)(1) | $5,000 | generally $10,000* |
| Household goods Appliances, furnishings, clothing, books, pets, and other household items. |
§ 11-504(b)(4) | $1,000 | $2,000 |
| Health aids Prescribed health aids for you or dependents. |
§ 11-504(b)(3) | Unlimited | Unlimited |
| $500 deposit account Automatic deposit-account protection. No election is needed, but it shares the $6,000 combined cap with the general wildcard. |
§ 11-504(b)(5), (6) | $500 automatic within $6,000 combined cap |
$500 each, if applicable within each filer's $6,000 combined cap |
| Insurance / injury benefits Covered sickness, accident, injury, death, and related benefits, subject to category-specific exceptions. |
§ 11-504(b)(2) | Unlimited† | Unlimited† |
| Retirement accounts Qualified retirement assets, including many 401(k), IRA, and pension interests, subject to statutory exceptions. |
§ 11-504(h) | Unlimited† | Unlimited† |
| Motor vehicle No standalone exemption. Use wildcard. |
none | $0 | $0 |
| Tenancy by entireties Property titled to spouses as tenants by the entireties. Separate-creditor protection can apply even if only one spouse files; actual joint claims can limit it. |
11 U.S.C. § 522(b)(3)(B) Maryland common law |
Potentially exempt† | limited by joint claims† |
Amounts are based on law effective June 1, 2026. SB 939 replaced the old federal-cap-linked homestead with Maryland dollar caps and CPI adjustments beginning July 1, 2027 (FY 2028). * Joint entries assume each debtor has a separate exemption right and an exemptible interest in the asset; joint filing alone does not automatically double every cap. † TBE and unlimited categories still depend on title, debt, statutory exceptions, and case facts.
Estimate What Maryland Exemptions Protect
Will you keep it? Estimate what's protected vs. at risk
Enter current value and payoff amounts. This estimate assumes the Maryland bankruptcy homestead first, then any unused § 11-504(b)(6) wildcard, then § 11-504(f)(1)(i)1 only for personal property.
Equity at risk
$0
Your situation
Use current value and payoff amounts. If a house or car is paid off, leave the payoff blank.
Principal residence
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Home equity used: $0
Exemptions protect equity. They do not catch up missed mortgage payments or remove valid liens.
Vehicle
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Vehicle equity used: $0
Maryland has no separate motor-vehicle exemption, so exposed vehicle equity depends on remaining flexible exemptions.
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Estimated equity at risk
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Nothing entered yet. Add your equity to see what's exposed.
Run the estimator to create a consultation summary.
For estimate purposes only. This tool is a simplified application of Md. Code, Cts. & Jud. Proc. § 11-504 and 11 U.S.C. § 522 as of the filing date. It does not determine title, domicile, TBE protection, joint-debt exposure, lien avoidability, federal homestead overlays under 11 U.S.C. § 522(o), (p), and (q), or whether an objection will be sustained.
See how the wildcard actually stacks (worked example)
Maryland's flexible protection has two pieces: a $6,000 general wildcard plus a $5,000 bankruptcy personal-property exemption. The $5,000 piece cannot be used on real estate.
Scenario · single filer · paid-off second car + tax refund
General wildcard: cash or property of any kind § 11-504(b)(6)
$6,000
Bankruptcy personal-property exemption § 11-504(f)(1)(i)1
$5,000
Combined flexible wildcard
$11,000
Applied to second car equity
− $7,500
Applied to tax refund in the bank
− $4,000
Remaining wildcard
−$500 → $500 exposed
Vehicle equity
Can I keep my car in a Maryland bankruptcy?
Short answer: Maryland has no separate car exemption. Your car is usually protected only if its equity fits inside your remaining wildcard and bankruptcy personal-property exemptions.
Maryland has no separate motor-vehicle exemption. That does not mean every car is exposed. It means vehicle equity usually has to fit inside the flexible exemptions: the $6,000 general wildcard under § 11-504(b)(6) and the $5,000 bankruptcy personal-property exemption under § 11-504(f)(1)(i)1, to the extent those exemptions are not needed for cash, refunds, household overflow, or other assets.
If your car equity is higher than the available flexible exemptions, the excess can matter. In Chapter 7, non-exempt equity can draw trustee attention. In Chapter 13, it often increases the amount unsecured creditors must receive through the plan.
Home equity
Can I keep my house if I file bankruptcy in Maryland?
For Maryland bankruptcy cases filed on or after June 1, 2026, the homestead exemption under § 11-504(f)(1)(i)2 and (ii) protects up to $125,000 of equity in owner-occupied residential real property. Equity means the home value minus mortgages and other liens. SB 939 also includes qualifying residential real property held in a revocable trust by a settlor.
Multiple individuals in the same bankruptcy case claiming the exemption for the same property cannot exceed $125,000 total under § 11-504(f)(1)(iii). Married homeowners should also review tenancy by the entireties below, because properly titled entireties property can be more important than the statutory homestead when the debt belongs to only one spouse.
A Maryland-specific issue
If you're married: tenancy by the entireties
For some married couples, TBE can protect a home even when the equity is far above the homestead. Debt in both names changes the result.
When a married couple owns property as tenants by the entireties (TBE), the law treats it as owned by the marriage itself, not by either spouse individually.
Under Maryland law, creditors of only one spouse generally cannot reach TBE property. In bankruptcy, that can protect equity far above the statutory homestead when the title and debt facts line up.
The catch is actual joint claims. If both spouses owe the same unsecured debt, such as a joint credit card or co-signed loan, the trustee may administer TBE property to that extent. For couples with mostly joint debt, TBE may protect little or nothing.
The debt list matters more than the deed alone. Try the toggle.
TBE protection check
One fact can flip the answer.
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Protected
Entireties property is generally shielded from creditors of only one spouse; actual joint claims can change the result.
Is the property titled to both spouses as tenants by the entireties?
Do you carry joint unsecured debt (both names)?
Chapter choice
Chapter 7 and Chapter 13 use exemptions differently
Same exemptions. Different job. In Chapter 7, non-exempt equity can put property at risk. In Chapter 13, it usually affects the payment.
Chapter 7
Liquidation · a few months
Exemptions decide what you keep. Anything over your exemption limits is non-exempt, and the trustee can sell it to pay creditors.
If everything fits inside your exemptions, you typically keep it all. That's the goal.
Exemptions = the wall around your property. Equity over the wall is exposed.
Chapter 13
Repayment · 3-5 year plan
Chapter 13 often lets you keep property while you make plan payments, but exemptions still set the "best-interests" floor. Your plan must pay unsecured creditors at least what they'd have gotten in a Chapter 7.
So non-exempt equity usually changes the payment math rather than automatically costing you the asset.
Exemptions = the floor on your plan payment, not a wall around assets.
Reference & the rest of the list
Protections people miss, plus common questions
Retirement accounts
Cts. & Jud. Proc. § 11-504(h)Qualified 401(k), IRA, and pension interests are protected outside Maryland's smaller dollar caps, subject to the statutory exceptions.
Wages vs. garnishment
Commercial Law § 15-601.1Often confused with exemptions. Wage protection limits what creditors garnish from a paycheck. That is different from what you keep in bankruptcy.
Insurance and injury benefits
Cts. & Jud. Proc. § 11-504(b)(2)Covered sickness, accident, injury, and death benefits can be exempt without a dollar cap. Category-specific exceptions still matter.
Common Maryland exemption questions
Will I lose my tax refund?
A pending or recently received refund is cash or personal property. It counts against your available flexible exemptions. If the $6,000 general wildcard and $5,000 bankruptcy personal-property exemption are already spoken for by a car, bank balance, or other assets, an unprotected refund can be exposed. Filing date matters around refund season.
Is the money in my bank account safe?
Bank balances are measured on the filing date. Maryland's automatic $500 deposit protection does not require an election, but the combined amount claimed under that protection and the $6,000 general wildcard cannot exceed $6,000. Larger balances depend on how much general wildcard and bankruptcy personal-property exemption remains after your other assets.
Can I keep my car?
Maryland has no separate motor-vehicle exemption. Car equity usually has to fit inside the $6,000 general wildcard and the $5,000 bankruptcy personal-property exemption, after accounting for any cash, refund, or other assets using those same flexible exemptions.
Can I use federal bankruptcy exemptions instead?
Usually no. Maryland has opted out of the federal bankruptcy exemption set. A debtor domiciled in Maryland generally uses Maryland exemptions rather than the federal exemptions listed in 11 U.S.C. § 522(d). If the federal domicile lookback makes no state exemptions available, federal law may provide a fallback.
Can married couples double the homestead?
No for the same property. For cases filed on or after June 1, 2026, multiple individuals in the same bankruptcy proceeding claiming the homestead exemption for the same property cannot exceed $125,000 total under § 11-504(f)(1)(iii). Joint filing also does not automatically double every other exemption; each debtor needs a separate exemption right and an exemptible interest in the asset. Married homeowners may still need a separate tenancy-by-the-entireties analysis.
730days
One qualifier before you rely on any of this
To use Maryland's exemptions you generally must have been domiciled here for the 730 days (two years) before filing. If you moved more recently, the law usually looks to where you were domiciled for the longer part of the 180 days before that two-year window. If that lookback leaves no state exemptions available, federal § 522(d) may become available as a fallback.
If the prior state is Virginia, homestead-deed requirements can become part of the planning. And if you acquired your home within 1,215 days before filing, federal law may cap the homestead exemption at $214,000 for cases filed from April 1, 2025 through March 31, 2028.
Review the local numbers before choosing a chapter
Use these state-specific resources to check Chapter 7 eligibility, property protection, wage-garnishment exposure, chapter choice, cost, and timing before a case strategy is selected.
Maryland exemptions
Review local property protections and the planning issues that can affect homes, vehicles, cash, and refunds.
Review exemptionsMaryland wage garnishment
Estimate the wage limit for ordinary consumer-debt garnishments and compare bankruptcy timing options.
Use calculatorChapter 7 vs. Chapter 13
Compare discharge timing, asset risk, repayment-plan issues, and when each chapter may fit.
Compare chaptersBankruptcy cost
Review filing fees, course costs, attorney-fee factors, and Chapter 13 fee-review references.
Review costsChapter 13 payment calculator
Estimate a repayment-plan payment from arrears, priority debt, unsecured-debt targets, and trustee administration.
Estimate paymentStop foreclosure
Review when bankruptcy may affect a foreclosure sale and when Chapter 13 can help cure arrears.
Review foreclosure optionsBankruptcy and security clearance
Review how bankruptcy, financial disclosures, and documentation can affect clearance-sensitive debt planning.
Review clearance planningRun the estimator before you call
Find out what you'd keep.
Bring your home value, mortgage balance, car loan balance, bank balance, and expected refund. We'll map what is protected and what may be exposed, including entireties and stacking issues this page can only sketch.