The state of Maryland has laws set up on what kinds of property are exempt from liquidation even when filing Chapter 7 of the bankruptcy code. Some states allow you to choose between utilizing the exemptions established by the federal government or the ones set up by the particular state that you live in, but Maryland is not one of those states. Maryland does not allow for any federal exemption options, so it is important to know what the state exemptions are so that you can protect your valuable assets from being seized.
How to Keep Your Car
Keeping your motor vehicle while you go through the process of filing for bankruptcy is something that most people hope will be possible. Although there are no specific statutes established in Maryland that protect it from liquidation, Maryland does have what is called a wild card that may be used to make any kind of property exempt up to a specified amount.
- A motor vehicle may be retained up to the valued amount of the Maryland wild card of $5,500.
- The wild card of $5,500 can only be used one time.
How to Keep Your Home
Keeping your home while filing for bankruptcy in Maryland is not likely, unless your house has an extremely low value. There is no homestead exemption amount in Maryland that protects your home from liquidation and so your options are very limited.
- The wild card of $5,500 can be used to protect a home with extremely low value.
- Tenancy property that is owned by both husband and wife may be exempt from debts that only one spouse owes.
Filing Schedule C of a Bankruptcy Petition
When you go to file your Chapter 7 bankruptcy petition, you need to include a schedule C form if it is your desire to retain any of your assets. The schedule C form is where you will list a description of the assets you wish to protect and the Maryland statute numbers that those exempt properties fit under. It is essential that the schedule C form is filled out correctly or your assets will not be safe from seizure and liquidation.
Get Legal Advice from a Maryland Bankruptcy Attorney
Anyone who is considering filing for bankruptcy should contact an attorney who specializes in the Chapter 7 bankruptcy laws and the protection of assets. An experienced bankruptcy attorney can make sure that all the paperwork is filed correctly and that you receive the maximum exemption protections allowed in Maryland.
