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*hb1098*
HOUSE BILL 1098
D3, N1 6lr1887
CF SB 939
By: Delegate Stewart Delegates Stewart and Tomlinson
Introduced and read first time: February 11, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2026
CHAPTER ______
AN ACT concerning 1
Bankruptcy Proceedings Courts – Exemptions From Execution on Judgments – 2
Residential Real Property 3
FOR the purpose of providing that the exemption for exempting certain owner–occupied 4
residential real property from execution on a judgment in a certain amount and 5
subject to certain adjustments in a bankruptcy proceeding includes certain real 6
property held in a revocable trust; altering the amount of the exemption for 7
owner–occupied residential real property in a bankruptcy proceeding; and generally 8
relating to debtor exemptions and bankruptcy proceedings residential real property 9
and exemptions from execution of a judgment. 10
BY repealing and reenacting, without amendments, 11
Article – Estates and Trusts 12
Section 14.5–103(a), (v), and (w) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Courts and Judicial Proceedings 17
Section 11–504(a) and (f) (b) 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2025 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Courts and Judicial Proceedings 22
2 HOUSE BILL 1098
Section 11–504(g) 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2025 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Estates and Trusts 6
14.5–103. 7
(a) In this title the following words have the meanings indicated. 8
(v) “Revocable”, as applied to a trust, means revocable by the settlor without the 9
consent of the trustee or a person holding an adverse interest. 10
(w) (1) “Settlor” means a person, including a testator, that creates or 11
contributes property to a trust. 12
(2) “Settlor” includes a person that, with other settlors, creates or 13
contributes property to a trust in which case each such person is a settl or of the portion of 14
the trust property attributable to the contribution of that person except to the extent 15
another person has the power to revoke or withdraw that portion. 16
Article – Courts and Judicial Proceedings 17
11–504. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) “Depository institution” means a bank, credit union, trust company, 20
savings bank, or savings and loan association, or any of their affiliates or subsidiaries. 21
(3) “DISABILITY” MEANS A PHYSICAL OR MENTAL IMPAIRMENT THAT 22
RESULTS IN A SUBSTANTIAL IMPEDIMENT TO EMPLOYMENT. 23
(4) “REVOCABLE TRUST” HAS THE MEANING STATED IN § 14.5–103 OF 24
THE ESTATES AND TRUSTS ARTICLE. 25
(5) “SETTLOR” HAS THE MEANING STAT ED IN § 14.5–103 OF THE 26
ESTATES AND TRUSTS ARTICLE. 27
[(3)] (6) “Value” means fair market value as of the date on which the 28
execution or other judicial process becomes effective against the property of the debtor, or 29
the date of filing the petition under the federal Bankruptcy Code. 30
HOUSE BILL 1098 3
(b) (1) The following items are exempt from execution on a judgment: 1
[(1)] (I) Wearing apparel, books, tools, instruments, or appliances, in an 2
amount not to exceed $5,000 in value necessary for the practice of any trade or profession 3
except those kept for sale, lease, or barter. 4
[(2)] (II) Except as provided in subsection (i) of this section, money 5
payable in the event of sickness, accident, injury, or death of any person, including 6
compensation for loss of future earnings. This exemption includes but is not l imited to 7
money payable on account of judgments, arbitrations, compromises, insurance, benefits, 8
compensation, and relief. Disability income benefits are not exempt if the judgment is for 9
necessities contracted for after the disability is incurred. 10
[(3)] (III) Professionally prescribed health aids for the debtor or any 11
dependent of the debtor. 12
[(4)] (IV) The debtor’s interest, not to exceed $1,000 in value, in household 13
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 14
and other items that are held primarily for the personal, family, or household use of the 15
debtor or any dependent of the debtor. 16
[(5)] (V) Subject to subsection (c)(3) of this section, up to $500 in a deposit 17
account or other account of the debtor held by a depository institution, without election of 18
the debtor. 19
[(6)] (VI) Cash or property of any kind equivalent in value to $6,000 is 20
exempt, if within 30 days from the date of the attachment or the levy by the sheriff, the 21
debtor elects to exempt cash or selected items of property in an amount not to exceed a 22
cumulative value of $6,000, except that the cumulative value of cash and property 23
exempted under this item and item [(5)] (V) of this [subsection] PARAGRAPH may not 24
exceed $6,000. 25
[(7)] (VII) Money payable or paid in accordance with an agreement or court 26
order for child support. 27
[(8)] (VIII) Money payable or paid in accordance with an agreement or court 28
order for alimony to the same extent that wages are exempt from attachment under § 29
15–601.1(b)(1)(i) of the Commercial Law Article. 30
[(9)] (IX) The debtor’s beneficial interest in any trust property that is 31
immune from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts 32
Article. 33
[(10)] (X) With respect to claims by a separate creditor of a husband or 34
wife, trust property that is immune from the claims of the separate creditors of the husband 35
or wife under § 14.5–511 of the Estates and Trusts Article. 36
4 HOUSE BILL 1098
(XI) OWNER–OCCUPIED RESIDENTIAL REAL PROPERTY , 1
INCLUDING A CONDOMINIUM UNIT, A COOPERATIVE HOUSING CORPORATION THAT 2
OWNS PROPERTY THAT THE DEBTOR OCCUPIES AS A RESIDENCE, A MANUFACTURED 3
HOME, OR RESIDENTIAL REAL PROPERTY OF A SETTLO R THAT IS HELD IN A 4
REVOCABLE TRUST, IN AN AMOUNT NOT TO EXCEED $75,000 FOR AN INDIVIDUAL. 5
(2) (I) BEGINNING OCTOBER 1, 2027, AND EVERY 3 YEARS 6
THEREAFTER, THE EXEMPTION AMOUNT SPECIFIED UNDER PARAGRAPH (1)(XI) OF 7
THIS SUBSECTION SHALL BE: 8
1. ADJUSTED BY ANY CHANG E IN THE CALENDAR YE AR 9
PRECEDING THE FISCAL YEAR IN THE CONSUMER PRICE INDEX (ALL URBAN 10
CONSUMERS – UNITED STATES CITY AVERAGE – ALL ITEMS), AS PUBLISHED BY THE 11
U.S. BUREAU OF LABOR STATISTICS; AND 12
2. ROUNDED TO THE NEAREST $25. 13
(II) ADJUSTMENTS MADE UNDE R THIS PARAGRAPH MAY NOT 14
APPLY TO PROCEEDINGS FILED BEFORE OCTOBER 1, 2027. 15
(f) (1) (i) In addition to the exemptions provided in subsection (b) of this 16
section, and in other statutes of this State, in any proceeding under Title 11 of the United 17
States Code, entitled “Bankruptcy”, any individual deb tor domiciled in this State may 18
exempt the debtor’s aggregate interest in: 19
1. Personal property, up to $5,000; and 20
2. Subject to subparagraph (ii) of this paragraph: 21
A. Owner–occupied residential real property, including a 22
condominium unit [or], a manufactured home that has been converted to real property in 23
accordance with § 8B –201 of the Real Property Article , OR RESIDENTIAL REAL 24
PROPERTY OF A SETTLOR THAT IS HELD IN A REVOCABLE TRUST; or 25
B. A cooperative housing corporation that owns property that 26
the debtor occupies as a residence. 27
(ii) [The] SUBJECT TO SUBPARAGRA PH (III) OF THIS 28
PARAGRAPH AND PARAGRAPH (2) OF THIS SUBSECTION, THE exemption allowed under 29
subparagraph (i)2 of this paragraph may not exceed [the amount under 11 U.S.C . § 30
522(d)(1), adjusted in accordance with 11 U.S.C. § 104, subject to the provisions of 31
paragraphs (2) and (3) of this subsection]: 32
HOUSE BILL 1098 5
1. $300,000 FOR AN INDIVIDUAL WH O IS AT LEAST 60 1
YEARS OLD AND: 2
A. IS A VETERAN, AS DEFINED IN § 9–901 OF THE STATE 3
GOVERNMENT ARTICLE; OR 4
B. HAS A DISABILITY CERT IFIED BY A LICENSED 5
PHYSICIAN THAT CAN R EASONABLY BE EXPECTE D TO LAST FOR A CONT INUOUS 6
PERIOD OF AT LEAST 12 MONTHS AFTER THE DAT E ON WHICH THE PROCE EDING 7
BEGINS; AND 8
2. $150,000 FOR ANY OTHER INDIVIDUAL. 9
(III) IF MULTIPLE INDIVIDUA LS IN THE SAME BANKR UPTCY 10
PROCEEDING CLAIM THE EXEMPTION UNDER SUBP ARAGRAPH (I)2 OF THIS 11
PARAGRAPH FOR THE SAME PROPERTY, THE TOTAL EXEMPTION AMOUNT MAY NOT 12
EXCEED $300,000. 13
(2) [An individual may not claim the exemption under paragraph (1)(i)2 of 14
this subsection on a particular property if: 15
(i) The individual has claimed successfully the exemption on the 16
property within 8 years prior to the filing of the bankruptcy proceeding in which the 17
exemption under this subsection is claimed; or 18
(ii) The individual’s spouse, child, child’s spouse, parent, sibling, 19
grandparent, or grandchild has claimed successfully the exemption on the property within 20
8 years prior to the filing of the bankruptcy proceeding in whic h the exemption under this 21
subsection is claimed. 22
(3) The exemption under paragraph (1)(i)2 of this subsection may not be 23
claimed by both a husband and wife in the same bankruptcy proceeding ] FOR FISCAL 24
YEAR 2028 AND EACH FISCAL YEAR THEREAFTER, THE EXE MPTION AMOUNTS 25
SPECIFIED IN PARAGRAPH (1)(II) OF THIS SUBSECTION SHALL BE: 26
(I) ADJUSTED BY ANY CHANG E IN THE CALENDAR YE AR 27
PRECEDING THE FISCAL YEAR IN THE CONSUMER PRICE INDEX (ALL URBAN 28
CONSUMERS – UNITED STATES CITY AVERAGE – ALL ITEMS), AS PUBLISHED BY THE 29
U.S. BUREAU OF LABOR STATISTICS; AND 30
(II) ROUNDED TO THE NEAREST $25. 31
(g) In any bankruptcy proceeding, a debtor is not entitled to the federal 32
exemptions provided by § 522(d) of the federal Bankruptcy Code. 33
6 HOUSE BILL 1098
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 1
apply only prospectively and may not be applied or interpreted to have any effect on or 2
application to any bankruptcy proceeding filed before the effective date of this Act. 3
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
1, 2026. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.