Bankruptcy exemption for your owner-occupied home
Md. Code, Cts. & Jud. Proc. § 11-504(f)(f)(1)(i)2
In plain words
In a bankruptcy case, Maryland lets you protect some equity in owner-occupied residential property, including a condo, a converted manufactured home, or a co-op you live in. The dollar cap is tied to the federal homestead figure. Outside bankruptcy, Maryland has no general homestead exemption, but a home owned by spouses as tenants by the entirety can be shielded from one spouse’s creditors.
Who is protected
Individual debtors domiciled in Maryland who file bankruptcy.
When it applies
- Only in Maryland.
- Only if the home is your primary residence.
- Only if you are in a bankruptcy case.
What you can do
Compare your options
Before filing bankruptcy, compare your equity with the current cap.
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Honest limits
- Applies only in bankruptcy; only one spouse may claim it.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawBankruptcy homestead exemption
Md. Code, Cts. & Jud. Proc. § 11-504(f)(f)(1)(i)2
Exact part: (f)(1)(i)2
What it says: In bankruptcy, a Maryland debtor may exempt an interest in owner-occupied residential property, up to a cap.
Read the official texthttps://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj§ion=11-504&enactments=false
Court cases
- Homeowner wonSame topicBartee v. Tara Colony Homeowners Ass'n
Bartee v. Tara Colony Homeowners Ass'n (In re Bartee), 212 F.3d 277 (5th Cir. 2000)
Chapter 13's anti-modification rule does not protect a junior lienholder whose lien is not supported by any value in the debtor's home
- Homeowner lostSame topicNobelman v. American Savings Bank
Nobelman v. Am. Sav. Bank, 508 U.S. 324 (1993)
a Chapter 13 debtor may not reduce a mortgage secured only by the principal residence to the fair market value of the home
- Partial winSame topicTaggart v. Lorenzen
Taggart v. Lorenzen, 587 U.S. 554 (2019)
a creditor may be held in civil contempt for violating a bankruptcy discharge order when there is no fair ground of doubt that the order barred its conduct
- Homeowner wonSame topicYoung v. Repine (In re Repine)
Young v. Repine (In re Repine), 536 F.3d 512 (5th Cir. 2008)
a creditor who knows of a bankruptcy and keeps pursuing collection willfully violates the automatic stay and may owe the debtor damages and attorney's fees
- Homeowner wonSame topicTill v. SCS Credit Corp.
Till v. SCS Credit Corp., 541 U.S. 465 (2004)
secured claims paid through a Chapter 13 plan may carry a prime-plus formula interest rate rather than the contract rate
- Homeowner lostSame topicCity of Chicago v. Fulton
City of Chicago v. Fulton, 592 U.S. 154 (2021)
merely retaining estate property seized before the bankruptcy filing does not violate the automatic stay under § 362(a)(3)
Related rights
Protect equity in your home with a bankruptcy exemption
11 U.S.C. § 522(b)(1)–(3)
In bankruptcy, you can keep ("exempt") certain property from creditors. For your home, the federal exemption protects equity up to a set dollar amount, but many states make you use the state's own list instead. Some state homestead exemptions are much larger than the federal one; some are smaller.
Read this rightThe automatic stay: filing bankruptcy pauses most collection
11 U.S.C. § 362(a)
When a bankruptcy case is filed, an "automatic stay" goes into effect right away. It generally stops lawsuits, foreclosure steps, and other collection against you and your property, without anyone needing to ask a judge. Creditors who knowingly violate it can owe damages.
Read this rightChapter 13: catch up on missed mortgage payments over time
11 U.S.C. § 1322(b)(5)
In a Chapter 13 bankruptcy, a plan can let you catch up on missed mortgage payments over a reasonable time (often 3 to 5 years) while you keep paying the regular monthly payment. For your main home, you can use this cure until the home is sold at a foreclosure sale held under state law.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this right