Sirody Bankruptcy Center Helps Maryland Residents Understand Bankruptcy Exemptions
Filing for bankruptcy can be a challenging and emotional process, but understanding the exemptions available under Maryland law can significantly ease financial stress. Sirody Bankruptcy Center, a leading bankruptcy law firm in Baltimore, is providing clarity on what property can be legally protected when individuals file under Chapter 7 or Chapter 13 bankruptcy.
Exemptions Offer Critical Financial Protection
Sirody Bankruptcy Center emphasizes that Maryland’s exemption laws are designed to help individuals maintain a basic standard of living while resolving unmanageable debt. These laws allow filers to keep essential property such as a portion of home equity, a vehicle, household goods, tools of the trade, and qualified retirement accounts.
Maryland Law Requires Use of State-Specific Exemptions
Unlike some states, Maryland does not allow bankruptcy filers to choose between federal and state exemptions. Instead, those filing in Maryland must use the state-specific list. This ensures consistency but requires that individuals understand the nuances of local law—a service the attorneys at Sirody Bankruptcy Center are well-equipped to provide.
Homestead, Personal Property, and Wage Exemptions
Among the most significant protections is the Maryland Homestead Exemption, which protects up to $25,150 in equity in a primary residence. Other key exemptions include personal property allowances, up to $6,000 under Maryland’s “Wildcard” Exemption, and wage protections that prevent creditors from garnishing beyond a reasonable percentage of a person’s income.
Retirement Accounts and Public Benefits Remain Safe
Sirody Bankruptcy Center notes that qualified retirement accounts—including 401(k)s, IRAs, and pensions—are generally fully exempt under both Maryland and federal bankruptcy laws. Additionally, public benefits such as Social Security, disability income, and unemployment compensation are protected from creditors in most cases.
Legal Guidance Is Key to Maximizing Protection
While exemption laws are designed to protect filers, navigating them without legal assistance can result in missed opportunities or loss of property. The attorneys at Sirody Bankruptcy Center work closely with each client to identify every applicable exemption and structure filings for the best possible outcome.
About Sirody Bankruptcy Center
With over 25 years of experience, Sirody Bankruptcy Center has guided thousands of Maryland residents through Chapter 7 and Chapter 13 bankruptcy proceedings. The firm is committed to helping clients protect their assets, stop creditor harassment, and achieve lasting financial relief through strategic legal counsel.
