Maryland Bankruptcy Laws

Standard federal filing fees. All cases filed in the U.S. Bankruptcy Court for the District of Maryland, with courthouses in Baltimore and Greenbelt.

Pre-filing credit counseling and pre-discharge debtor education are required (federal requirements).

The homestead exemption is $31,575 for cases filed on or after April 1, 2025 (adjusted every 3 years for inflation). Applies to owner-occupied residential real property. Married couples filing jointly cannot double the exemption.

Key exemptions include: cash and personal property up to $6,000 (individual) or $12,000 (joint), tools of the trade up to $5,000, clothing, books, pets, household goods and appliances up to various limits.

A $6,000 general wildcard can be applied to any property. Additionally, up to $15,800 of unused homestead exemption can be applied as wildcard to any property — useful for renters who cannot use the homestead.

ERISA-qualified retirement benefits are fully exempt with no dollar limit. Traditional IRA exemptions are limited to tax-deductible contributions; Roth IRAs have broader protection.

Creditors cannot garnish more than 25% of disposable wages per pay period. Individuals earning near minimum wage must be left with at least 30 times the Maryland minimum hourly wage per week.

Maryland has opted out of the federal bankruptcy exemption scheme. Debtors must use Maryland state exemptions.