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Maryland Bankruptcy: Getting an Exemption

Maryland bankruptcy attorneys see a variety of clients in any given day. Some fell upon hard times and could not make their bills. Others are businesses that struggled and found that the local market was not as supportive as they originally intended. All decided that ignoring the problem was not going to make it go away and so decided to take legal measures.

Maryland bankruptcy laws fall under not only the Maryland Judicial system but also the United States Justice Department. After 2005 laws were passed to limit the abuse heaped upon the bankruptcy system. Some opponents within the Maryland bankruptcy system argued that this penalized debtors who were already financially strapped. They believe that the new codes, under which Maryland bankruptcy falls under, actually are in place to serve as special interests to credit card companies and big businesses.

There are differences that set Maryland bankruptcy apart from other states. The vast majority of differences come under the exemptions for assets. When filing Chapter 7 bankruptcy a trustee is appointed by the Maryland bankruptcy court judge. The job of the trustee is to analyze all the debtor's assets and determine which are to be liquidated and those assets that are exempt under Maryland bankruptcy law. This is where the differences occur from other states as to what assets are allowed and which are considered able to be liquidated, or sold to repay debt.

Under Maryland bankruptcy laws regarding property exemptions, nothing is exempt unless it is jointly held by a spouse or another person. This includes land, houses, condos, apartments and mobile homes. Personal property such as furniture, clothing, pets, jewelry or anything such as books and material, provided that it is not work related, is only exempt up to one thousand dollars under Maryland bankruptcy exemptions.

Pensions, social security, unemployment wage and retirements are generally exempt as well but there are special rules governing the total value that a trustee of the Maryland bankruptcy court will have to take into consideration for liquidation. Cars and other vehicles are not exempt at all unlike most other states but Maryland does provide for what is termed "Wild Card" up to six thousand dollars for property and cash, regardless of what it is, and five thousand for other types of real property.

Maryland bankruptcy laws do take into consideration unpaid wages. They allow the debtor to keep up to seventy-five percent of their wage. The goal is to pay back the creditors, at least part of the debt, but not starve or make the person homeless. If they were to do that, it would severely affect the economy and have a greater impact on society.

If there is any question as to any asset that might come into question, the best recourse is to speak with a reputable Maryland bankruptcy specialist. He or she can offer the best advice on what can and can not be taken by the judicial system as an asset.