When you file for bankruptcy and review your financial information, you may discover that your equity and assets are “over-exempt”. An “over-exempt” status exists when your assets – besides your IRA and your home – are worth more than the exempted amount allowed under state law. Examples of assets other than your IRA and your home are cash, tax refund(s), furniture, and your car.
In Maryland, you’re allowed to keep approximately $12,000.00 of assets, not including your IRA and your home. If your non-IRA and non-home assets are worth more than $12,000.00, you need to make a payment to the trustee in bankruptcy.
For more information, read My Assets Exceed My Allowed Exemptions; What Should I Do?
