Many people think filing Chapter 7 bankruptcy means losing everything they own. But this couldn’t be farther from the truth. Maryland bankruptcy laws let you keep many essential and sentimental things you own when filing for Chapter 7 bankruptcy. Let’s look at what you can retain while discharging your debt.
Your home residence
Maryland lets you protect up to $25,150 of your house value. This means if your house equity falls within this limit, you can keep your home. Take note, though, that you still need to keep up with mortgage payments after filing for bankruptcy.
Your alimony or child support
Any child support or alimony you receive stays yours during bankruptcy. These payments help support you and your family, so Maryland law makes sure bankruptcy won’t touch this money. This protection includes both past-due and future payments.
Your retirement savings
Maryland law safeguards most retirement accounts and pensions from bankruptcy proceedings. Your 401(k), IRA, pension plans and Social Security benefits stay protected, helping secure your financial future.
Your essential personal items
You can keep many of your personal belongings and property. These include:
- Furniture and appliances
- Books and gadgets
- Clothing
- Work equipment
- Burial plot
If you use any prescribed health aids, you also get to keep them. Moreover, the state doesn’t limit the exemption amount for professionally prescribed health aids.
Your beloved assets
Maryland’s wildcard exemption provides $6,000 additional protection for any property you choose. This flexibility lets you protect assets that exceed other exemption limits or don’t fit specific categories.
If you own a car, you can use the state’s wildcard exemption to protect it since Maryland doesn’t have a vehicle exemption.
Get a fresh start on your finances
Chapter 7 bankruptcy provides more protection than most people expect—there are other asset types you get to keep aside from these five. Maryland’s exemptions help you eliminate overwhelming debt while keeping essential assets. Consider discussing your situation with a bankruptcy attorney to help maximize the available protections for your financial restart.