Filing Bankruptcy in Maryland: Means Test, Exemptions and Courts

Maryland is a single federal district: the U.S. Bankruptcy Court for the District of Maryland (https://www.mdb.uscourts.gov).

1 person: $86,928; 2 people: $114,611; 3 people: $135,949; 4 people: $166,173; add $11,100 for each additional person over 4. These figures apply to bankruptcy cases filed on or after July 15, 2026 (the Census median income data was last updated for cases filed on or after April 1, 2026).

Maryland filers must use Maryland exemptions: "In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by § 522(d) of the federal Bankruptcy Code."

In bankruptcy, the debtor's interest in owner-occupied residential real property (including a condominium or a manufactured home converted to real property) or a housing cooperative, up to the amount in 11 U.S.C. 522(d)(1) as adjusted under 11 U.S.C. 104. It cannot be claimed on a property if the debtor or a close relative successfully claimed it on that property within the prior 8 years, and both spouses cannot claim it in the same case.

No separate motor vehicle exemption. A vehicle can be protected only through the general exemptions: up to $6,000 in cash or property of any kind (combined with the $500 automatic bank-account exemption) and, in bankruptcy, up to $5,000 in personal property.

Cash or property of any kind up to $6,000 (combined cap with the $500 automatic deposit-account exemption), plus, in bankruptcy only, personal property up to $5,000.

Money or assets in, or payable from, retirement plans qualified under Internal Revenue Code sections 401(a), 403(a), 403(b), 408, 408A, 414(d) or 414(e) are exempt from all creditors other than the Maryland Department of Health (with exceptions for qualified domestic relations orders).

Exempt from attachment: the greater of 75% of disposable wages due, or 30 times the Maryland minimum hourly wage times the number of weeks in which the wages were earned; plus medical insurance payments deducted from wages.

The court has a pro se section with an "Understanding Bankruptcy" legal overview, information on visiting the clerk's office, county and statewide community legal resources, notices of bankruptcy petition preparer injunctions, and a Debtor Assistance Project.

District of Maryland (the state's only bankruptcy district): Appendix F to the Local Bankruptcy Rules (Ver. 25.01, December 1, 2025) provides two fee arrangements presumed reasonable under 11 U.S.C. 329 and allowable under 11 U.S.C. 330 without application or approval (rebuttable on objection or an order to justify fee): (A) a flat fee not to exceed $5,300.00 for representation of the debtor for all matters in the main case, with additional fees available by application (Local Bankruptcy Form E-1) for unexpected, extraordinary work or work done more than 90 days after the confirmation order; or (B) a flat fee not to exceed $6,800.00 for all matters in the main case, with additional fees only for unexpected, extraordinary work and otherwise a waiver of further fee applications. The amounts adjust every 3 years on April 1 (starting April 1, 2025) by the CPI-U, rounded to the nearest $25, and do not apply to cases commenced before an adjustment. Representation covers all matters in the case except adversary proceedings, appeals and U.S. Trustee audits, for which separate arrangements may be made.