Maryland Homestead exemption?

[shrews228]

I have been researching the Maryland homestead exemption (or lack thereof!) I am a little confused as to whether the Federal homestead exemption could apply up to 21K?

Thanks for your help.

Lynda

[family765]

From my research, Maryland does not have a Homestead exemption and Maryland does not allow the use of Federal exemptions.
(not an attorney but I did a lot of research before I filed Pro Se).

[tcreegan]

Hi again shrews,

Maryland DOES have homestead exemption (I put the law in your other post) they just use the federal value for their homestead exemption.

value of federal homestead exemption = value of Maryland homestead exemption

2010 federal homestead = 21,625 so Maryland homestead exemption = 21,625

Its important to note that MD uses the value only, the federal rules for using the exemption don't apply (the cap, unused being wildcard)

Tom in Colo

[shrews228]

Thanks Tom! I appreciate your help. I did a little research and found out the reason that the MD Homestead Exemption is so confusing is because a law was passed effective Oct 1, 2010, which allows Marylanders to use the Fed. Exemption.

Here is what I found:

Maryland Homestead Exemption—Effective October 1, 2010

In addition to the prior asset exemptions permitted in a Chapter 7 or Chapter 13 bankruptcy filing, the owner of owner-occupied residential real property may exempt the amount of equity equal to the allowed federal homestead exemption.

Amount of Exemption: $20,200. However, this amount may increase if the amount of the federal exemption increases.
Limitations on the Homestead Exemption

In order to fully preserve your interests, it is essential that all aspects of the Homestead Exemption Law be complied with. The Homestead Exemption:

* Can only be claimed once every eight years (Under current federal law, an individual can only be discharged in a Chapter 7 bankruptcy filing once every eight years.)
* Cannot be claimed by both husband and wife in the same proceeding (essentially doubling the amount of equity claimed as exempt)
* Cannot have been claimed on the same property by a spouse, child, child’s spouse, parent, sibling or grandparent in the past eight years

Effect of Maryland's Homestead Exemption

Before the new Homestead Exemption, the amount of equity a debtor could preserve in his or her home was very limited. Equity in the debtor’s home could only be claimed as exempt under the general Maryland asset exemptions—in which all other assets were included and capped. With the new exemption, a debtor can protect over $20,000.00 in equity in his or her home, in addition to other asset exemptions.

Family765, just wondering how your MD Ch 7 went? We haven't filed yet. We are going to file Pro Se, so I am still in the learning/gathering paperwork phase.

Thanks for your help everyone!

Lynda

[tcreegan]

Hi shrews,

That is the Oct 2010 update, odd that they don't have the current federal exemption amount...

An added tip for pro-se filers is to go to your courts website and find the 'local bankruptcy rules'
These are things like the format of the creditors matrix, order of documents, staples or paperclips, etc.

Enjoy the paperwork...HA!

Its worth it when its done!

Tom in Colo

[shrews228]

I looked up the actual law at the MD Legislative website and you are correct. The homestead exemption amount is the same as the Federal exemption amount. Thank you

I'm not digging the paperwork so far. lol It's hard to go back so far in time to find what I need. I guess I need to be better organized....