Maryland figures and citations
The Maryland means test and exemptions.
Income, property, and address history shape the bankruptcy options available to a Maryland household. The firm reviews the means test and applicable exemptions before recommending a chapter.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
What the means test decides.
In Chapter 7, the means test asks whether the presumption of abuse in 11 U.S.C. 707(b)(2) arises. Under 707(b)(7), no motion under 707(b)(2) may be brought where the debtor’s annualized current monthly income is at or below the applicable state median family income for a household of that size. Income at or below the median clears that screen. Income above it does not end the case; it moves the analysis to a second form.
In Chapter 13 the same income comparison sets the length of the plan. 11 U.S.C. 1325(b)(4) sets the applicable commitment period at three years, and at not less than five years where the debtor’s annualized current monthly income is not less than the applicable state median family income. A plan may run shorter than the applicable commitment period only if it pays unsecured claims in full.
Current monthly income generally averages income received during the six full calendar months before filing, with the inclusions and exclusions in 11 U.S.C. 101(10A). Social Security benefits and certain other payments are excluded. Recent income changes also matter when evaluating the proposed chapter and plan.
11 U.S.C. 101(10A)
11 U.S.C. 707
11 U.S.C. 1325
11 U.S.C. 522
U.S. Trustee Program means testing
Official bankruptcy forms
Step one
Maryland median family income by household size.
The U.S. Trustee Program publishes these figures and changes them. The set in force applies to cases filed on or after July 15, 2026. A household near the line is measured against the figure published on the day the petition is filed, not this one.
| Household size | Median family income |
|---|---|
| 1 earner | $86,928 |
| 2 people | $114,611 |
| 3 people | $135,949 |
| 4 people | $166,173 |
| Each individual over 4 | Add $11,100 |
Use the income figures applicable to the petition date.
Median family income table, cases filed on or after July 15, 2026
U.S. Trustee Program means testing, effective period
Step two, when income is above the median.
Above-median income moves the case to Official Form 122A-2 in Chapter 7, or Form 122C-2 in Chapter 13. That form does not ask what the household actually spends on everything. It subtracts allowed expenses, and for several large categories the allowance is a published figure rather than the real bill.
The U.S. Trustee Program states that the original source for the National and Local Standards is the IRS, covering the IRS national standards for allowable living expenses and the local standards for transportation and for housing and utilities. Food, clothing, and similar household expenses come from the national table by household size. Housing, utilities, and vehicle ownership and operating costs come from local tables that vary by county and by census region. Certain other deductions, including secured debt payments and priority claims such as unpaid taxes, are taken from the debtor’s own records rather than a table.
The firm applies the national and local standards for the filing date and Maryland county to the household’s records.
The result of that subtraction is compared against the thresholds in 707(b)(2)(A)(i) in a Chapter 7 case. The completed form and supporting records establish whether the presumption arises and whether it can be rebutted under 707(b)(2)(B).
U.S. Trustee Program means testing, national and local standards
Means testing data for cases filed on or after July 15, 2026
Official Forms 122A-1, 122A-2, 122C-1, and 122C-2
11 U.S.C. 707
The property side
The Maryland exemption list.
Maryland generally bars the federal 522(d) exemption list when Maryland law governs. Under 11 U.S.C. 522(b)(3)(A), domicile during the 730 days before filing controls; if domicile was not in one state throughout that period, the statute looks to the preceding 180-day period. Section 522(b)(3) permits the federal list if that domicile rule leaves the debtor ineligible for any exemption. Review address history and applicable law before using this selected Maryland list.
| Exemption | Citation | Amount | What the subsection covers |
|---|---|---|---|
| Tools of the trade | 11-504(b)(1) | $5,000 | Wearing apparel, books, tools, instruments, or appliances necessary for the practice of any trade or profession. |
| Household goods and personal items | 11-504(b)(4) | $1,000 | Household furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, and other items. |
| Deposit account | 11-504(b)(5) | $500 | Money in a deposit or other account held by a depository institution, exempt without any election by the debtor. |
| General exemption in cash or property | 11-504(b)(6) | $6,000 | Cash or property of any kind, on the debtor’s election. The cumulative value exempted under (b)(6) and (b)(5) may not exceed $6,000. |
| Personal property in a bankruptcy case | 11-504(f)(1)(i)1 | $5,000 | An additional aggregate interest in personal property, available in a Title 11 proceeding to an individual debtor domiciled in Maryland. |
| Owner-occupied residence | 11-504(f)(1)(i)2, (ii) and (iii) | $125,000 | For proceedings filed on or after June 1, 2026, Maryland allows up to $125,000 for an individual, with a combined $125,000 cap when multiple individuals claim the same property in the same proceeding. |
| Retirement plan assets | 11-504(h) | No stated dollar cap | Money or other assets payable to a participant or beneficiary from a qualifying retirement plan, subject to the exceptions the subsection lists. |
11-504(b)(5) is the $500 deposit account exemption, and 11-504(b)(6) is the general exemption in cash or property of any kind. The two share a single ceiling: the cumulative value exempted under (b)(6) and (b)(5) may not exceed $6,000. A dollar protected under (b)(5) is a dollar no longer available under (b)(6).
Chapter 400 of the 2026 Maryland Laws applies to proceedings filed on or after June 1, 2026. It sets a $125,000 individual residence exemption and a combined $125,000 cap for the same property in the same proceeding. Annual inflation adjustments begin in fiscal year 2028. Federal limits under 11 U.S.C. 522(o) and 522(p) also apply. Address history determines the applicable exemption law.
2026 Maryland Laws, Chapter 400, residence exemption effective June 1, 2026
Md. Code, Cts. and Jud. Proc. 11-504, including enactments
11 U.S.C. 522
90 Fed. Reg. 8941, dollar amount adjustments effective April 1, 2025
The work
What this firm does with the numbers.
Collect six full calendar months of income
Current monthly income is the average of the six full calendar months before the petition month. It is built from pay records, not from last year’s return and not from a client’s recollection.
Pull the published figures on the filing date
The U.S. Trustee Program median family income table and the IRS national and local standards are pulled on the date the petition is filed. A figure quoted in an earlier draft is not used.
Run Form 122A-1, or Form 122C-1 in a Chapter 13 case
Official Form 122A-1 reports current monthly income in a Chapter 7 case and applies the 707(b)(7) comparison. Form 122C-1 does the same work in Chapter 13 and sets the applicable commitment period.
Run the deduction form only when the income figure requires it
Official Form 122A-2 is the Chapter 7 calculation when annualized current monthly income is above the applicable median. Form 122C-2 is the Chapter 13 disposable income calculation.
Schedule the property and choose the exemption
Maryland exemptions are claimed on Schedule C against scheduled values. The choice among 11-504(b)(6), 11-504(f)(1)(i)1, and the residence exemption is made against the actual asset list, one line at a time.
To start, send a high-level summary through the bankruptcy consultation request.
Questions
Common questions.
What is the Maryland median income for the means test?
The U.S. Trustee Program table applies to cases filed on or after July 15, 2026. For Maryland it prints $86,928 for one earner, $114,611 for two people, $135,949 for three people, and $166,173 for four people, and it adds $11,100 for each individual in excess of four. They change, and the figure published on the filing date is the one that controls the case.
Does Maryland let me use the federal exemptions?
Maryland generally bars the federal 522(d) exemption list when Maryland law governs. Filing in Maryland alone does not decide which exemption law applies. Federal law examines domicile during the 730 days before filing and, if domicile was not in one state throughout that period, the preceding 180-day period. Section 522(b)(3) permits the federal list if its domicile rule leaves the debtor ineligible for any exemption. Address history and applicable law must be reviewed before selecting exemptions.
What is the Maryland homestead exemption?
For proceedings filed on or after June 1, 2026, Maryland allows a residence exemption of up to $125,000 for an individual. Multiple individuals claiming the same property in the same proceeding share that $125,000 cap. The exemption covers qualifying residential interests under 11-504(f), including certain property held in a revocable trust. Address history, ownership and applicable federal limits still matter.
What if my income is above the median?
Being above the median does not end a Chapter 7 case and does not decide it. It means the 707(b)(7) safe harbor does not apply and Official Form 122A-2 is completed, which subtracts allowed expenses drawn from the IRS national and local standards and certain secured and priority payments. The presumption of abuse under 707(b)(2) arises only if the result crosses the statutory thresholds.
Is the Maryland deposit account exemption separate from the general one?
No. They share one ceiling. Md. Code, Cts. and Jud. Proc. 11-504(b)(5) exempts up to $500 in a deposit or other account held by a depository institution, without any election, and 11-504(b)(6) allows cash or property of any kind equivalent in value to $6,000 on a timely election. The statute provides that the cumulative value exempted under (b)(6) and (b)(5) may not exceed $6,000, so a dollar protected under (b)(5) is a dollar no longer available under (b)(6).
If unpaid tax is part of the debt.
Priority tax claims are a deduction on the Chapter 13 form and a survival question in Chapter 7. Whether a given year is dischargeable under 11 U.S.C. 523(a)(1) is answered from account transcripts and filed returns, one year at a time, and a filed federal tax lien can outlive a discharge. That analysis sits on the IRS tax debt in bankruptcy page and belongs in the same consultation as the means test.
Related pages
Related bankruptcy and tax resources.
- Maryland bankruptcyThe Maryland hub: the Greenbelt and Baltimore divisions, the county split, and the LBF-M plan form.
- Chapter 7The consumer liquidation chapter, the 341 meeting, and what 11 U.S.C. 523 does not discharge.
- Chapter 13The consumer repayment-plan chapter, including the 109(e) debt limits and plan length.
- IRS tax debt in bankruptcyWhen a federal income tax year is dischargeable, and why a filed lien survives.
- About Mr. PowellTrial and appellate experience, tax practice, and admissions.
- Chapter 7 vs Chapter 13The two consumer chapters compared row by row from the Bankruptcy Code, including how each treats tax debt.
- Start hereSend a high-level summary. The first consultation is free. Fees are quoted in writing after it.
Tell me your household size and whether your income has changed.
Start with a high-level summary. The firm requests income and property records during the review. Keep account numbers and documents out of the first request. The first consultation is free.
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Law Office of Alexander Powell, PLLC. 1629 K Street NW, Suite 300, Washington, DC 20006.