An exemption allows you to retain the property during the bankruptcy process. It is obvious that you will want to keep certain items in order to continue your existence after bankruptcy. This could include your vehicle, furniture, apparel, cash, and other personal belongings.
In general, a debtor may retain up to $12,000 in exemptions. In the case of joint debtors (i.e., a married couple filing for bankruptcy together), these figures are multiplied. Consequently, a married couple can exempt $24,000 worth of property. This section will focus on the $12,000 exemption; for joint filers, simply double these figures. It is essential to remember that Maryland does not permit the use of federal exemptions; instead, you must utilize Maryland exemptions.
First, Maryland allows you to exempt $1,000 worth of personal property from taxation. This may include appliances, furniture, household products, books, animals, and clothing.
Second, Maryland allows you to exempt $5,000 worth of trade-related instruments. This consists of clothing, books, tools, instruments, and appliances necessary for the continuation of your enterprise.
Thirdly, Maryland allows you a """"wild card"""" exemption of $6,000 in cash or property of any kind and $5,000 in real or personal property. You cannot receive both the $6,000 exemption and the $5,000 exemption.
1 plus 5 plus 6 equals 12; therefore, the utmost allowable exemptions amount to $12,000.
Remember that it is crucial that you contact a Maryland bankruptcy attorney or Maryland bankruptcy lawyer to discuss the exemptions available to you.
Another significant exemption in Maryland is the tenancy by the entirety exemption for married couples who own property. This exemption will be addressed in a different article.""
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