Maryland Homestead Laws

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

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

This article explains how the Maryland homestead exemption works, including the amount and eligibility requirements. We’ll also show you how to claim the exemption when you file your bankruptcy case.

If you’re considering filing bankruptcy but are worried about what may happen to your house and other real estate, contact a Maryland bankruptcy attorney. They’ll review your Chapter 7 or Chapter 13 bankruptcy case before you file it with the local bankruptcy court and make sure you take full advantage of the state’s homestead exemption.

The Homestead Exemption: What It Is and How It Works

It’s possible to lose your house during a liquidation bankruptcy (Chapter 7). 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, you’ll want to protect the equity in your home, as it can lower your monthly payments in your repayment plan.

Both federal and state protections can help keep you from losing your primary dwelling. Perhaps most important is the Maryland homestead exemption, which protects your home equity and can prevent it from being sold to pay your debts.

Overview of Maryland Homestead Exemption

Maryland is an “opt-out” state, which means you can’t claim the federal exemptions when filing bankruptcy. Maryland residents must use the state’s exemptions. As of July 1, 2026, the Maryland homestead exemption is $125,000. This can only be applied to your owner-occupied residence. You can’t use it to protect rental properties, vacation properties, or second homes.

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

Homestead Exemption Limits in the State of Maryland

Under Maryland bankruptcy law, you can exempt up to $125,000 of the equity in your primary residence. Maryland law doesn’t allow married couples to double the homestead exemption, so $125,000 is the maximum amount you can claim.

Qualifying Property Types

The U.S. Bankruptcy Code’s definition of “homestead” is rather broad. Maryland bankruptcy law is similar. The following types of properties qualify as a homestead for purposes of bankruptcy in the State of Maryland:

• Single-family home
• Condominium
• Co-op
• Manufactured home
• Mobile home
• Trailer

To apply the exemption to a manufactured home, mobile home, or trailer, you must permanently affix the dwelling to your real estate. Otherwise, the court may reject your attempt to claim the exemption, and you’ll risk losing your home equity to a forced sale by the trustee.

How To Claim the Homestead Exemption in Maryland

Claiming the homestead exemption in Maryland is straightforward. Filers of a Chapter 13 bankruptcy case don’t have to make a separate filing with the state. Include your primary residence in your list of assets on your Schedule A/B. You must also indicate your intention to claim the exemption on Schedule C.

Those filing a Chapter 7 bankruptcy have an additional step. You must include a “Statement of Intention,” alerting the bankruptcy trustee that you plan on keeping your home.

Exceptions and Limitations

The Maryland homestead exemption has limitations. For example, if you don’t meet the strict residency requirements, you won’t be able to use the exemption. There’s also an exception based on prior bankruptcy filings. If a family member claimed the Maryland exemption within the last eight years, you can’t apply the exemption to the same property.

Married couples can’t double the homestead exemption. Maryland law limits the exemption to $125,000 total, regardless of whether you file a single or joint bankruptcy.

For other exceptions or limitations, consider getting legal advice from a seasoned Maryland bankruptcy law attorney. They’ll answer your questions and show how they may affect your filing.

Other Exemptions You Can Claim in Your Maryland Bankruptcy Case

In addition to the homestead exemption, federal and state bankruptcy laws offer other protections. While the homestead exemption is the most significant, you must indicate any other exemptions on your Schedule C form.

Some of the Maryland bankruptcy exemptions available under bankruptcy include the following:

• Personal property: You can exempt up to $1,000 in household goods under Maryland bankruptcy law
• Motor vehicle: Maryland doesn’t have a specific motor vehicle exemption, but you can apply the wildcard exemption to the equity in a motor vehicle
• Tools of the trade: Maryland law offers a state exemption for work-related tools and supplies of up to $5,000
• Public benefits: Under both state and federal law, all public benefits, such as Social Security, workers’ compensation, and unemployment compensation, are considered exempt property
• Retirement accounts: Retirement accounts are exempt (aside from some accounts, like IRAs, which may have a generous exemption limit instead)
• Wildcard exemption: The exact amount of the Maryland wildcard exemption changes based on inflation (as of 2026, you can exempt up to $5,000 of non-exempt personal property and up to $6,000 in cash and other property)

The point of filing bankruptcy is to get a fresh start while keeping as many of your assets as possible. Bankruptcy exemptions can help you do that, but they limit what you can protect. Whichever type of bankruptcy you file, use your state exemptions. A Maryland bankruptcy attorney can ensure that you take advantage of every exemption possible.

Disclaimer: State laws change frequently due to new legislation, higher court rulings, and other means. While FindLaw strives to provide the most current information, consult a local bankruptcy lawyer to confirm your state’s bankruptcy laws.

Consult a Maryland Bankruptcy Lawyer To Discuss Your Case

If you’re thinking about filing Chapter 13 or Chapter 7 bankruptcy, consider speaking with an experienced Maryland bankruptcy attorney before filing anything with the court. If you don’t claim your homestead exemption when filing your bankruptcy petition, you may lose your chance to do so.

Your attorney will not only ensure that you file the proper paperwork, but they’ll also be by your side throughout the bankruptcy process. Having a skilled expert in your corner throughout the bankruptcy process can help you achieve the best possible outcome.