Courts - Exemption From Judgment - Alterations and Additions

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1520*

HOUSE BILL 1520
D1 6lr2714

By: Delegate Tomlinson Delegates Tomlinson, Conaway, Simmons, Taylor, and
Valentine
Introduced and read first time: February 13, 2026
Assigned to: Judiciary
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026

CHAPTER ______

AN ACT concerning 1

Courts – Exemption From Judgment – Alterations and Additions 2

FOR the purpose of increasing, for certain categories of items, the amount allowed to be 3
exempted from judgment; establishing additional categories of items that may be 4
exempted from judgment; altering the allowable exemptions for a debtor proceeding 5
through bankruptcy; and generally relating to allowable exemptions from judgment. 6

BY repealing and reenacting, with amendments, 7
Article – Courts and Judicial Proceedings 8
Section 11–504 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Courts and Judicial Proceedings 14

11–504. 15

(a) (1) In this section the following words have the meanings indicated. 16

(2) “DISABLED DISABILITY” MEANS HAVING A PHYSICAL OR MENTAL 17
DISABILITY THAT: 18
2 HOUSE BILL 1520

(I) MAKES AN INDIVIDUAL U NABLE TO ENGAGE IN 1
SUBSTANTIAL GAINFUL EMPLOYMENT; AND 2

(II) 1. HAS LASTED OR CAN BE EXPECTED TO LAST AT LEAST 3
12 MONTHS; OR 4

2. CAN BE EXPECTED TO RESULT IN DEATH A PHYSICAL 5
OR MENTAL IMPAIRMENT THAT RESULTS IN A SU BSTANTIAL IMPEDIMENT TO 6
EMPLOYMENT. 7

(3) “DISABLED VETERAN” HAS THE MEANING STAT ED IN § 7–208 OF 8
THE TAX – PROPERTY ARTICLE. 9

[(2)] (4) (3) “Depository institution” means a bank, credi t union, trust 10
company, savings bank, or savings and loan association, or any of their affiliates or 11
subsidiaries. 12

(5) (4) “ELDERLY” MEANS AT LEAST 60 YEARS OLD. 13

[(3)] (6) (5) “Value” means fair market value as of the date on which the 14
execution or other judicial process becomes effective against the property of the debtor, or 15
the date of filing the petition under the federal Bankruptcy Code. 16

(b) The following items are exempt from execution on a judgment: 17

(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 18
not to exceed $5,000 in value necessary for the practice of any trade or profession except 19
those kept for sale, lease, or barter. 20

(2) Except as provided in subsection (i) of this section, money payable in 21
the event of sickness, accident, injury, or death of any person, including compensation for 22
loss of future earnings. This exemption includes but is not limited to money payable on 23
account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 24
relief. Disability income benefits are not exempt if the judgment is for necessities contracted 25
for after the disability is incurred. 26

(3) Professionally prescribed health aids for the debtor or any dependent of 27
the debtor. 28

(4) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 29
PARAGRAPH, THE debtor’s interest, not to exceed [$1,000] $5,000 in value, in household 30
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 31
and other items that are held pri marily for the personal, family, or household use of the 32
debtor or any dependent of the debtor. 33
HOUSE BILL 1520 3

(II) FOR A DISABLED VETERAN DEBTOR WHO IS ELDERL Y OR 1
WHO HAS A DISABILITY , THE DEBTOR ’S INTEREST , NOT TO EXCEED $10,000 IN 2
VALUE, IN HOUSEHOLD FURNISH INGS, HOUSEHOLD GOODS , WEARING APPAREL , 3
APPLIANCES, BOOKS, ANIMALS KEPT AS PETS , AND OTHER ITEMS THAT ARE HELD 4
PRIMARILY FOR THE PERSONAL, FAMILY, OR HOUSEHOLD USE OF THE DEBTOR OR 5
ANY DEPENDENT OF THE DEBTOR. 6

(5) THE DEBTOR’S INTEREST, NOT TO EXCEED $3,000 IN VALUE, IN 7
FIREARMS. 8

(6) (I) 1. EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 9
PARAGRAPH AND SUBSUB PARAGRAPH 2 OF THIS SUBPARAGRAPH , THE DEBTOR’S 10
INTEREST, NOT TO EXCEED $10,000 IN VALUE, IN ONE MOTOR VEHICLE NECESSARY 11
FOR PRACTICE OF THE DEBTOR’S OCC UPATION, TRADE, OR ENROLLMENT IN ANY 12
PUBLIC OR PRIVATE EL EMENTARY, SECONDARY, OR CAREER AND TECHNI CAL 13
EDUCATION SCHOOL OR INSTITUTION OF HIGHER EDUCATION. 14

2. THIS PARAGRAPH DOES N OT APPLY TO A MOTOR 15
VEHICLE USED TO COMM UTE TO AN OCCUPATION , A TRADE, OR AN EDUCATIONAL 16
PROGRAM THAT IS NOT OTHERWISE NECESSARY FOR USE IN THE COURS E OF THE 17
OCCUPATION, TRADE, OR EDUCATIONAL PROGRAM. 18

(II) FOR A DEBTOR WHO IS E LDERLY OR DISABLED WHO HAS A 19
DISABILITY, THE DEBTOR ’S INTEREST , NOT TO EXCEED $25,000, IN ONE M OTOR 20
VEHICLE NECESSARY FOR THE PRACTICE OF TH E DEBTOR’S OCCUPATION, TRADE, 21
OR ENROLLMENT IN ANY PUBLIC OR PRIVATE EL EMENTARY, SECONDARY, OR 22
CAREER AND TECHNICAL EDUCATION SCHOOL OR INSTITUTION OF HIGHE R 23
EDUCATION. 24

[(5)] (7) Subject to subsection (c)(3) of this section, up to $500 in a deposit 25
account or other account of the debtor held by a depository institution, without election of 26
the debtor. 27

[(6)] (8) Cash or property of any kind equivalent in value to $6,000 is 28
exempt, if within 30 days from the date of the attachment or the levy by the sheriff, the 29
debtor elects to exempt cash or selected items of property in an amount not to exceed a 30
cumulative value of $6,000, except that the cumulative value of cash and property 31
exempted under this item and item [(5)] (7) of this subsection may not exceed $6,000. 32

[(7)] (9) Money payable or paid in accordance with an agreement or court 33
order for child support. 34

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[(8)] (10) Money payable or paid in accordance with an agreement or court 1
order for alimony to t he same extent that wages are exempt from attachment under § 2
15–601.1(b)(1)(i) of the Commercial Law Article. 3

[(9)] (11) The debtor’s beneficial interest in any trust property that is 4
immune from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts 5
Article. 6

[(10)] (12) With respect to claims by a separate creditor of a husband or 7
wife, trust property that is immune from the claims of the separate creditors of the husband 8
or wife under § 14.5–511 of the Estates and Trusts Article. 9

(13) PAYMENTS UNDER § 24 OR § 32 OF THE INTERNAL REVENUE 10
CODE. 11

(c) (1) (i) In order to determine whether the property listed in subsection 12
(b)(4) and [(6)] (8) of this section is subject to execution, the sheriff shall appraise the 13
property at the time of levy. 14

(ii) The sheriff shall return the appraisal with the writ. 15

(iii) An appraisal made by the sheriff under this paragraph is subject 16
to review by the court on motion of the debtor. 17

(iv) Procedures will be as prescribed by rules issued by the Supreme 18
Court of Maryland. 19

(2) (i) A writ of garnishment issued for a deposit account or other 20
account held by a depository institution shall instruct the garnishee that, subject to 21
additional exemptions, it is to garnish only the amount exceeding the amount exempted 22
without election of the debtor. 23

(ii) A depository institution may not be liable to the judgment 24
creditor for actions taken in good faith re liance on the instructions in the writ of 25
garnishment required under this paragraph. 26

(3) (i) A depository institution shall, on receipt of a writ of garnishment 27
or other levy or attachment, answer the writ of garnishment or other levy or attachment 28
and, if the debtor maintains any deposit accounts with the depository institution, state: 29

1. That the total amount does not exceed $500; or 30

2. The amount of funds in excess of $500 that has been held 31
pending further order of court. 32

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(ii) For any funds in excess of $500, the depository institution shall 1
follow all other customary procedures for handling a writ of garnishment or other levy or 2
attachment, including freezing of funds. 3

(iii) 1. If a debtor holds an interest in multiple deposit accou nts 4
at a single depository institution, the depository institution may determine how and to 5
which account or accounts the $500 exemption should be applied. 6

2. This subparagraph does not create a cause of action 7
against a depository institution that co mplies with a writ of garnishment or other levy or 8
attachment. 9

(iv) The exemption under subsection [(b)(5)] (B)(7) of this section: 10

1. Applies separately to each depository institution and to 11
each writ of garnishment directed to a depository institution; and 12

2. Does not preclude or reduce a debtor’s rights to any other 13
exemption provided by State or federal law. 14

(d) The debtor may not waive, by cognovit note or otherwise, the provisions of 15
subsections (b) and (h) of this section. 16

(e) The exemptions in this section do not apply to wage attachments. 17

(f) (1) (i) In addition to the exemptions provided in subsection (b) of this 18
section, and in other statutes of this State, in any proceeding under Title 11 of the United 19
States Code, entitled “ Bankruptcy”, any individual debtor domiciled in this State may 20
exempt the debtor’s aggregate interest in: 21

1. Personal property, up to $5,000; and 22

2. Subject to subparagraph (ii) of this paragraph: 23

A. Owner–occupied residential real property, including a 24
condominium unit , A MOBILE HOME AS DEF INED IN § 8A–101 OF THE REAL 25
PROPERTY ARTICLE, or a manufactured home that has been converted to real property 26
in accordance with § 8B–201 of the Real Property Article; or 27

B. A cooperative housing corporation that owns property that 28
the debtor occupies as a residence. 29

(ii) 1. [The] EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 30
OF THIS SUBPARAGRAPH , THE exemption allowed under subparagraph (i)2 of this 31
paragraph may not exceed [the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance 32
6 HOUSE BILL 1520

with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection] 1
$300,000 IN VALUE. 2

2. THE EXEMPTION ALLOWED UNDER SUBPARAGRAPH 3
(I)2 OF THIS PARAGRAPH SH ALL BE $600,000 IN VALUE IF THE O WNER OR A 4
DEPENDENT OF THE OWNER OF THE PROPERTY IS ELDERLY OR DISABLED. 5

(2) An individual may not claim the exemption under paragraph (1)(i)2 of 6
this subsection on a particular property if: 7

(i) The individual has claimed successfully the exemption on the 8
property within 8 years prior to the filing of the bankruptcy proceeding in which the 9
exemption under this subsection is claimed; or 10

(ii) The individual’s spouse, child, child’s spouse, parent, sibling, 11
grandparent, or grandchild has claimed successfully the exemption on the property within 12
8 years prior to the filing of the bankruptcy proceeding in which the exemption under this 13
subsection is claimed. 14

(3) The exemption under paragraph (1)(i)2 of this subsection may not be 15
claimed by both a husband and wife in the same bankruptcy proceeding. 16

(g) In any bankruptcy proceeding, a debtor is not entitled to the federal 17
exemptions provided by § 522(d) of the federal Bankruptcy Code. 18

(h) (1) In addition to the exemptions provided in subsections (b) and (f) of this 19
section and any other provisions of law, any money or other assets payable to a participant 20
or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan 21
qualified under § 401(a), § 403(a), § 403(b), § 408, § 408A, § 414(d), or § 414(e) of the United 22
States Internal Revenue Code of 1986, as amended, or § 409 (as in effect prior to January 23
1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt 24
from any and all claims of the creditors of the beneficiary or participant, other than claims 25
by the Maryland Department of Health. 26

(2) Paragraph (1) of this subsection does not apply to: 27

(i) An alternate payee under a qualified domestic relations order, as 28
defined in § 414(p) of the United States Internal Revenue Code of 1986, as amended; 29

(ii) A retirement plan, qualified under § 401(a) of the United States 30
Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement 31
account qualified under § 408 of the U nited States Internal Revenue Code of 1986, as 32
amended; or 33

(iii) The assets of a bankruptcy case filed before January 1, 1988. 34

HOUSE BILL 1520 7

(3) The interest of an alternate payee in a plan described under paragraph 1
(1) of this subsection shall be exempt from any and all claims of any creditor of the alternate 2
payee, except claims by the Maryland Department of Health. 3

(4) If a contribution to a retirement plan described under paragraph (1) of 4
this subsection exceeds the amount deductible or, in the case of contribution under § 408A 5
of the Internal Revenue Code, the maximum contribution allowed under the applicable 6
provisions of the United States Internal Revenue Code of 1986, as amended, the portion of 7
that contribution that exceeds the amount deductible or, in the case of contribution under 8
§ 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued 9
earnings on such a portion, are not exempt under paragraph (1) of this subsection. 10

(i) (1) In this subsection, “net recovery” means the sum of money to be 11
distributed to the debtor after deduction of attorney’s fees, expenses, medical bills, and 12
satisfaction of any liens or subrogation claims arising out of the claims for personal injury, 13
including those arising under: 14

(i) The Medicare Secondary Payer Act, 42 U.S.C. § 1395y; 15

(ii) A program of the Maryland Department of Health for which a 16
right of subrogation exists under §§ 15–120 and 15–121.1 of the Health – General Article; 17

(iii) An employee benefit plan subject to the federal Employee 18
Retirement Income Security Act of 1974; 19

(iv) A health insurance contract; or 20

(v) A workers’ compensation insurance plan. 21

(2) Twenty–five percent of the net recovery by the debtor is subject to 22
execution on a judgment for a child support arrearage on a claim for: 23

(i) Personal injury; or 24

(ii) Workers’ compensation indemnity benefits, including any weekly 25
benefits or settlement proceeds payable to the debtor. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect 27
October 1, 2026. 28