Maryland law allows bankruptcy filers to claim a bankruptcy exemption for their owner-occupied residential real estate, including a condo or manufactured home. The law ties the Maryland real estate exemption limit to that of the federal homestead exemption. (See Maryland Courts and Judicial Proceedings, Section 11–504(f), set out just below.)
As of April 1, 2019, the federal homestead exemption amount—and therefore the Maryland real estate exemption amount—will increase to $25,150.
§ 11–504. Items excluded from execution of judgment
Interests in property
(f)(1)(i) In addition to the exemptions provided in subsection (b) of this section, and in other statutes of this State, in any proceeding under Title 11 of the United States Code, entitled “Bankruptcy”, any individual debtor domiciled in this State may exempt the debtor’s aggregate interest in:
1. Personal property, up to $5,000; and
2. Subject to subparagraph (ii) of this paragraph:
A. Owner-occupied residential real property, including a condominium unit or a manufactured home that has been converted to real property in accordance with § 8B-201 of the Real Property Article; or
B. A cooperative housing corporation that owns property that the debtor occupies as a residence.
(ii) The exemption allowed under subparagraph (i)2 of this paragraph may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection.
(2) An individual may not claim the exemption under paragraph (1)(i)2 of this subsection on a particular property if:
(i) The individual has claimed successfully the exemption on the property within 8 years prior to the filing of the bankruptcy proceeding in which the exemption under this subsection is claimed; or
(ii) The individual’s spouse, child, child’s spouse, parent, sibling, grandparent, or grandchild has claimed successfully the exemption on the property within 8 years prior to the filing of the bankruptcy proceeding in which the exemption under this subsection is claimed.
(3) The exemption under paragraph (1)(i)2 of this subsection may not be claimed by both a husband and wife in the same bankruptcy proceeding.
For more information on bankruptcy exemptions and filing for bankruptcy, go to our Maryland bankruptcy homepage.