Is Maryland Adjusting Its Bankruptcy Exemptions for Inflation in 2023?

 

The Federal Government adjusts Federal exemption amounts every three years. Does Maryland adjust exemption amounts?

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Each state has its own set of exemption laws, apart from the federal bankruptcy exemptions under § 522. 

Does Maryland Adjust Its State Exemptions for Inflation?

Maryland homestead amount is keyed to the inflation adjusted amount of the federal exemptions which change every three years and was last changed in 2022. Those inflation adjusted amounts can be found here.

Revised Federal Bankruptcy Exemption Amounts As of April 1, 2022

Can I use the Federal Exemptions in Maryland?:

No. Md. Code Ann., Cts. & Jud. Proc. § 11-504

The federal bankruptcy exemptions are revised every three years. The last change was in 2019 and now they are changing again in 2022. The next change will be in 2025.

Not all states allow their residents to use the Federal Bankruptcy Exemptions.

The following are the new Federal Bankruptcy exemption amounts, effective April 1:

Exemption: Amount
Homestead  - § 522(d)(1) $27,900
Motor Vehicle  - § 522(d)(2)    $4,450
Household Goods  - § 522(d)(3)
- Per Item Limit
- Aggregate Limit

   $700
 $14,875
Jewelry  - § 522(d)(4)    $1,875
Wild Card  - § 522(d)(5) 
- Any property
- Unused homestead under § 522(d)(1)
 
 $1,475
$13,950
Tools of the Trade -  § 522(d)(6)    $2,800
Unmatured Life Insurance - § 522(d)(8)  $14,875
Personal Injury Claims - § 522(d)(11)(D)  $27,900
 

Here's What Other States Do

Every state also has its own exemption laws. Some of these states revise them for inflation, just like the federal government. The table below shows what each state does.

Some states (Alabama, Arizona, Alaska, California. Maine, Maryland, Michigan, Minnesota, Montana, Ohio, and South Carolina) periodically adjust their statutory exemption limits for inflation.

See the table below for more details. 




Jurisdictional relevance: ST

There are versions of this article for each State.



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