{"id":373850,"date":"2016-03-31T21:35:29","date_gmt":"2016-04-01T02:35:29","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/maryland-law\/maryland-homestead-laws.html"},"modified":"2026-09-15T09:06:03","modified_gmt":"2026-09-15T14:06:03","slug":"maryland-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/maryland-law\/maryland-homestead-laws.html","title":{"rendered":"Maryland Homestead Laws"},"content":{"rendered":"\n
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Maryland Homestead Laws<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Maryland homestead exemption<\/span> protects up to $125,000 of equity in a debtor’s primary residential property during bankruptcy. It applies to owner-occupied real estate<\/span>, including single-family homes, condominiums, co-ops, and permanently affixed mobile homes. Filers<\/span> must claim this exemption on Schedule C to prevent the bankruptcy trustee from selling their home to pay off creditors.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Almost every state has homestead protection laws that help protect homeowners<\/span> from losing their primary residence<\/span> in bankruptcy. These statutes allow individuals to exempt a specific amount of equity in their real property, or “homestead.”<\/p>\n

In some states, debtors can choose between their state bankruptcy exemptions<\/span> and the federal exemptions<\/span>. Maryland does not allow this choice. Under Maryland <\/span>bankruptcy<\/span> law<\/span>, debtors must claim the state homestead exemption<\/span> or risk losing their home in a forced sale through bankruptcy.<\/p>\n

This article explains how the Maryland homestead exemption<\/span><\/a> works, including the amount and eligibility<\/span> requirements. We\u2019ll also show you how to claim the exemption when you file your bankruptcy case<\/span>.<\/p>\n

If you\u2019re considering filing bankruptcy<\/span> but are worried about what may happen to your house and other real estate<\/span>, contact a Maryland <\/span>bankruptcy<\/span> attorney<\/span><\/a>. They\u2019ll review your Chapter 7 or Chapter 13 <\/span>bankruptcy<\/span> case<\/span> before you file it with the local bankruptcy court<\/span> and make sure you take full advantage of the state\u2019s homestead exemption<\/span>.<\/p>\n

The Homestead Exemption<\/span>: What It Is and How It Works<\/h2>\n

It\u2019s possible to lose your house during a liquidation<\/span> bankruptcy (Chapter 7<\/a>). If you have significant equity in your principal residence, the bankruptcy trustee may force you to sell your home so they can use the proceeds to pay off your creditors. Even in Chapter 13<\/a>, you\u2019ll want to protect the equity in your home, as it can lower your monthly payments in your\u00a0repayment plan<\/span>.<\/p>\n

Both federal and state protections can help keep you from losing your primary dwelling. Perhaps most important is the Maryland\u00a0homestead exemption<\/span>, which protects your home equity<\/span> and can prevent it from being sold\u00a0to pay your debts.<\/p>\n

Overview of Maryland Homestead Exemption<\/span><\/h2>\n

Maryland is an \u201copt-out\u201d state, which means you can\u2019t claim the federal exemptions<\/span> when filing bankruptcy<\/span>. Maryland residents must use the state\u2019s exemptions<\/span>. As of July 1, 2026, the Maryland homestead exemption<\/span> is $125,000<\/a>. This can only be applied to your owner-occupied residence. You can\u2019t use it to protect rental properties, vacation properties, or second homes.<\/p>\n

When you file for bankruptcy, let the bankruptcy court<\/span> know you plan to claim the exemption. Depending on which type of bankruptcy<\/span> you file, you may also have to submit other forms and documentation to take advantage of the homestead exemption<\/span>.<\/p>\n

Homestead <\/span>Exemption<\/span> Limits<\/span> in the State of Maryland<\/h3>\n

Under Maryland <\/span>bankruptcy<\/span> law<\/span>, you can exempt up to $125,000 of the equity in your primary residence<\/span>. Maryland law<\/span> doesn\u2019t allow married couples<\/span> to double the homestead exemption<\/span>, so $125,000 is the maximum amount you can claim.<\/p>\n

Qualifying Property Types<\/h3>\n

The U.S. Bankruptcy Code\u2019s definition of \u201chomestead\u201d is rather broad. Maryland <\/span>bankruptcy<\/span> law<\/span> is similar. The following types of properties qualify as a homestead for purposes of bankruptcy in the State of Maryland:<\/p>\n