Article - Courts and Judicial Proceedings
§11–504.
(a) (1) In
this section the following terms have the meanings indicated.
(2) “Value”
means fair market value as of the date upon which the execution or
other judicial process becomes effective against the property of the
debtor, or the date of filing the petition under the federal Bankruptcy
Code.
(b) The following
items are exempt from execution on a judgment:
(1) Wearing apparel,
books, tools, instruments, or appliances, in an amount not to exceed
$5,000 in value necessary for the practice of any trade or profession
except those kept for sale, lease, or barter.
(2) Except as provided
in subsection (i) of this section, money payable in the event of sickness,
accident, injury, or death of any person, including compensation for
loss of future earnings. This exemption includes but is not limited
to money payable on account of judgments, arbitrations, compromises,
insurance, benefits, compensation, and relief. Disability income benefits
are not exempt if the judgment is for necessities contracted for after
the disability is incurred.
(3) Professionally
prescribed health aids for the debtor or any dependent of the debtor.
(4) The debtor’s
interest, not to exceed $1,000 in value, in household furnishings,
household goods, wearing apparel, appliances, books, animals kept
as pets, and other items that are held primarily for the personal,
family, or household use of the debtor or any dependent of the debtor.
(5) Cash or property
of any kind equivalent in value to $6,000 is exempt, if within 30
days from the date of the attachment or the levy by the sheriff, the
debtor elects to exempt cash or selected items of property in an amount
not to exceed a cumulative value of $6,000.
(6) Money payable
or paid in accordance with an agreement or court order for child support.
(7) Money payable
or paid in accordance with an agreement or court order for alimony
to the same extent that wages are exempt from attachment under §
15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article.
(8) The debtor’s
beneficial interest in any trust property that is immune from the
claims of the debtor’s creditors under § 14.5–511
of the Estates and Trusts Article.
(9) With respect
to claims by a separate creditor of a husband or wife, trust property
that is immune from the claims of the separate creditors of the husband
or wife under § 14.5–511 of the Estates and Trusts Article.
(c) (1) In
order to determine whether the property listed in subsection (b)(4)
and (5) of this section is subject to execution, the sheriff shall
appraise the property at the time of levy. The sheriff shall return
the appraisal with the writ.
(2) An appraisal
made by the sheriff under this subsection is subject to review by
the court on motion of the debtor.
(3) Procedures
will be as prescribed by rules issued by the Court of Appeals.
(d) The debtor
may not waive, by cognovit note or otherwise, the provisions of subsections
(b) and (h) of this section.
(e) The exemptions
in this section do not apply to wage attachments.
(f) (1) (i) In
addition to the exemptions provided in subsection (b) of this section,
and in other statutes of this State, in any proceeding under Title
11 of the United States Code, entitled “Bankruptcy”, any
individual debtor domiciled in this State may exempt the debtor’s
aggregate interest in:
1. Personal property,
up to $5,000; and
2. Subject to subparagraph
(ii) of this paragraph:
A. Owner–occupied
residential real property, including a condominium unit or a manufactured
home that has been converted to real property in accordance with §
8B–201 of the Real Property Article; or
B. A cooperative
housing corporation that owns property that the debtor occupies as
a residence.
(ii) The exemption
allowed under subparagraph (i)2 of this paragraph may not exceed the
amount under 11 U.S.C. § 522(d)(1), adjusted in accordance with
11 U.S.C. § 104, subject to the provisions of paragraphs (2)
and (3) of this subsection.
(2) An individual
may not claim the exemption under paragraph (1)(i)2 of this subsection
on a particular property if:
(i) The individual
has claimed successfully the exemption on the property within 8 years
prior to the filing of the bankruptcy proceeding in which the exemption
under this subsection is claimed; or
(ii) The individual’s
spouse, child, child’s spouse, parent, sibling, grandparent,
or grandchild has claimed successfully the exemption on the property
within 8 years prior to the filing of the bankruptcy proceeding in
which the exemption under this subsection is claimed.
(3) The exemption
under paragraph (1)(i)2 of this subsection may not be claimed by both
a husband and wife in the same bankruptcy proceeding.
(g) In any bankruptcy
proceeding, a debtor is not entitled to the federal exemptions provided
by § 522(d) of the federal Bankruptcy Code.
(h) (1) In
addition to the exemptions provided in subsections (b) and (f) of
this section and any other provisions of law, any money or other assets
payable to a participant or beneficiary from, or any interest of any
participant or beneficiary in, a retirement plan qualified under §
401(a), § 403(a), § 403(b), § 408, § 408A, §
414(d), or § 414(e) of the United States Internal Revenue Code
of 1986, as amended, or § 409 (as in effect prior to January
1984) of the United States Internal Revenue Code of 1954, as amended,
shall be exempt from any and all claims of the creditors of the beneficiary
or participant, other than claims by the Maryland Department of Health.
(2) Paragraph (1)
of this subsection does not apply to:
(i) An alternate
payee under a qualified domestic relations order, as defined in §
414(p) of the United States Internal Revenue Code of 1986, as amended;
(ii) A retirement
plan, qualified under § 401(a) of the United States Internal
Revenue Code of 1986, as amended, as a creditor of an individual retirement
account qualified under § 408 of the United States Internal Revenue
Code of 1986, as amended; or
(iii) The assets
of a bankruptcy case filed before January 1, 1988.
(3) The interest
of an alternate payee in a plan described under paragraph (1) of this
subsection shall be exempt from any and all claims of any creditor
of the alternate payee, except claims by the Maryland Department of
Health.
(4) If a contribution
to a retirement plan described under paragraph (1) of this subsection
exceeds the amount deductible or, in the case of contribution under §
408A of the Internal Revenue Code, the maximum contribution allowed
under the applicable provisions of the United States Internal Revenue
Code of 1986, as amended, the portion of that contribution that exceeds
the amount deductible or, in the case of contribution under §
408A of the Internal Revenue Code, the maximum contribution allowed,
and any accrued earnings on such a portion, are not exempt under paragraph
(1) of this subsection.
(i) (1) In
this subsection, “net recovery” means the sum of money
to be distributed to the debtor after deduction of attorney’s
fees, expenses, medical bills, and satisfaction of any liens or subrogation
claims arising out of the claims for personal injury, including those
arising under:
(i) The Medicare
Secondary Payer Act, 42 U.S.C. § 1395y;
(ii) A program
of the Maryland Department of Health for which a right of subrogation
exists under §§ 15–120 and 15–121.1 of the Health –
General Article;
(iii) An employee
benefit plan subject to the federal Employee Retirement Income Security
Act of 1974; or
(iv) A health insurance
contract.
(2) Twenty–five
percent of the net recovery by the debtor on a claim for personal
injury is subject to execution on a judgment for a child support arrearage.