Maryland State Bankruptcy Exemptions


Courts and Judicial Proceedings 11-504. Exemptions from execution

(a) (1) In this section the following terms have the meanings indicated.

(2) "Value" means fair market value as of the date upon which the execution or other judicial process becomes effective against the property of the debtor, or the date of filing the petition under the federal Bankruptcy Code.

(b) The following items are exempt from execution on a judgment:

(1) Wearing apparel, books, tools, instruments, or appliances, in an amount not to exceed $ 5,000 in value necessary for the practice of any trade or profession except those kept for sale, lease, or barter.

(2) Money payable in the event of sickness, accident, injury, or death of any person, including compensation for loss of future earnings. This exemption includes but is not limited to money payable on account of judgments, arbitrations, compromises, insurance, benefits, compensation, and relief. Disability income benefits are not exempt if the judgment is for necessities contracted for after the disability is incurred.

(3) Professionally prescribed health aids for the debtor or any dependent of the debtor.

(4) The debtor's interest, not to exceed $ 1,000 in value, in household furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, and other items that are held primarily for the personal, family, or household use of the debtor or any dependent of the debtor.

(5) Cash or property of any kind equivalent in value to $ 6,000 is exempt, if within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects to exempt cash or selected items of property in an amount not to exceed a cumulative value of $ 6,000.

(c) (1) In order to determine whether the property listed in subsection (b)(4) and (5) of this section is subject to execution, the sheriff shall appraise the property at the time of levy. The sheriff shall return the appraisal with the writ.

(2) An appraisal made by the sheriff under this subsection is subject to review by the court on motion of the debtor.

(3) Procedures will be as prescribed by rules issued by the Court of Appeals.

(d) The debtor may not waive, by cognovit note or otherwise, the provisions of subsections (b) and (h) of this section.

(e) The exemptions in this section do not apply to wage attachments.

(f) 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, not to exceed $ 5,000 in value, in real property or personal property.

(g) In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by 522(d) of the federal Bankruptcy Code.

(h) (1) In addition to the exemptions provided in subsections (b) and (f) of this section and any other provisions of law, any money or other assets payable to a participant or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan qualified under 401(a), 403(a), 403(b), 408, 408A, 414(d), or 414(e) of the United States Internal Revenue Code of 1986, as amended, or 409 (as in effect prior to January 1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt from any and all claims of the creditors of the beneficiary or participant, other than claims by the Department of Health and Mental Hygiene.

(2) Paragraph (1) of this subsection does not apply to:

(i) An alternate payee under a qualified domestic relations order, as defined in 414(p) of the United States Internal Revenue Code of 1986, as amended;

(ii) A retirement plan, qualified under 401(a) of the United States Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement account qualified under 408 of the United States Internal Revenue Code of 1986, as amended; or

(iii) The assets of a bankruptcy case filed before January 1, 1988.

(3) The interest of an alternate payee in a plan described in subsection (h)(1) of this section shall be exempt from any and all claims of any creditor of the alternate payee, except claims by the Department of Health and Mental Hygiene.

(4) If a contribution to a retirement plan described under paragraph (1) of this subsection exceeds the amount deductible or, in the case of contribution under 408A of the Internal Revenue Code, the maximum contribution allowed under the applicable provisions of the United States Internal Revenue Code of 1986, as amended, the portion of that contribution that exceeds the amount deductible or, in the case of contribution under 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued earnings on such a portion, are not exempt under paragraph (1) of this subsection.

Commercial Law 15-601.1. Exemption from attachment

(a) Disposable wages. -- In this section "disposable wages" means the part of wages that remain after deduction of any amount required to be withheld by law.

(b) Amounts of wages exempt; medical insurance payments. -- The following are exempt from attachment:

(1) Except as provided in item (2) of this subsection, the greater of:

(i) The product of $ 145 multiplied by the number of weeks in which the wages due were earned; or

(ii) 75 percent of the disposable wages due;

(2) In Caroline, Kent, Queen Anne's, and Worcester counties, for each work week, the greater of:

(i) 75 percent of the disposable wages due; or

(ii) 30 times the federal minimum hourly wages under the Fair Labor Standards Act in effect at the time the wages are due; and

(3) Any medical insurance payment deducted from an employee's wages by the employer.

(c) Calculation per pay period. -- The amount subject to attachment shall be calculated per pay period.

Insurance Code 16-111. Proceeds exempt from creditors

(a) In general. -- The proceeds of a policy of life insurance or under an annuity contract on the life of an individual made for the benefit of or assigned to the spouse, child, or dependent relative of the individual are exempt from all claims of the creditors of the individual arising out of or based on an obligation created after June 1, 1945, whether or not the right to change the named beneficiary is reserved or allowed to the individual.

(b) Proceeds described. -- For purposes of this section, proceeds include death benefits, cash surrender and loan values, premiums waived, and dividends, whether used to reduce the premiums or used or applied in any other manner, except if the debtor has, after issuance of the policy, elected to receive the dividends in cash.

(c) Effect of section. -- This section does not prohibit a creditor from collecting a debt out of the proceeds of a life insurance policy pledged by the insured as security for the debt.

(d) Effect of change or transfer. -- A change of beneficiary, assignment, or other transfer is valid except for transfer with actual intent to hinder, delay, or defraud creditors.

Insurance Code 8-431. Benefits exempt from attachment or execution

Benefits to be paid by a society are not subject to attachment, garnishment, or other process and may not be seized, appropriated, or applied by any process or operation of law to pay a debt or liability of a member, beneficiary, or other person with a right to the benefit, whether before or after payment.

Art. 88A, 73. Assistance not assignable

Assistance granted under this subtitle shall not be transferable or assignable, at law or in equity, and none of the money paid or payable under this subtitle shall be subject to execution, levy, attachment, garnishment or other legal process, or to the operation of any bankruptcy or insolvency law.

State Personnel and Pensions 21-502. Exemptions from execution; permissible assignments

(a) In general. --

(1) Except as provided in paragraph (2) of this subsection, a person may not attach, execute, garnish, or otherwise seize any current or future benefit under this Division II or any money in a fund created under this Division II.

(2) A court of competent jurisdiction may expressly order that a benefit under this Division II be assigned in a decree or order of alimony, child support, or divorce, or in a court-approved property settlement incident to a court decree or order.

(b) Notice to Board of Trustees. -- An assignment under this section only applies to benefits paid after the Board of Trustees receives:

(1) written notice of the court decree or order; and

(2) any additional information that the Board of Trustees requires.

(c) Limitation on Board's liability. -- The Board of Trustees is not liable for an improper payment to a person because the Board of Trustees did not receive written notice of a court decree or order.

Labor and Employment 9-732. Prohibition against assignment, charge, attachment, or execution

Except as provided in Title 10 of the Family Law Article, before the issuance and delivery of a check or draft for any money payable under this title, the money may not be assigned, charged, or taken in attachment or execution.

Labor and Employment 8-106. Protection of covered employees

(a) Void agreements. --

(1) An agreement by an individual to commute, release, or waive a right to benefits under this title is void.

(2) An agreement by an employee to pay all or part of the contributions that an employing unit is required to make under this title is void.

(b) Benefits and rights to benefits. --

(1) An assignment or pledge of an individual's right to benefits under this title is void.

(2) A right to benefits under this title is not subject to attachment, execution, levy, or any other remedy provided by law for collection of debts.

(3) After an individual receives benefits, unless they are commingled with other money of the individual, the benefits are exempt from any remedy provided by law for collection of debts.

(4) A waiver of any exemption under this subsection is void.

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