Can I Keep My House if I File Bankruptcy in Maryland?
- Sheereen E. McNair, Esq.
- Jul 13
- 2 min read
For most homeowners in Maryland, yes, you can keep your home when you file bankruptcy, as long as you stay current on your mortgage and your equity is protected by the homestead exemption. When you are behind and want to catch up, Chapter 13 is usually the tool that saves the house.
Your home is often the thing people worry about most. The good news is that filing is frequently what protects it, not what threatens it. Here is how it works in Maryland.
Keeping your home in Chapter 7
If you are current on your mortgage and your equity fits within the homestead exemption, you can usually keep your home and simply keep paying your mortgage as before. Chapter 7 clears other debts that were making your mortgage hard to afford.
The homestead exemption
As of June 1, 2026, Maryland's homestead exemption protects up to $125,000 of equity in your owner-occupied home. As long as your equity is within that amount, the trustee cannot sell your home. The exemption now also covers a home held in a revocable trust, and married couples filing together cannot double it.
If you are behind on your mortgage
This is where Chapter 13 shines. A Chapter 13 plan lets you spread the past due amount over three to five years while you stay current going forward, which can stop a foreclosure and let you keep the house.
What about equity?
Equity is your home's value minus what you owe. Lower equity is easier to protect. If you have significant equity above the exemption, we plan for it before you file, often through Chapter 13, so your home stays safe.
How we protect your home
At Middleton Legal we look at your mortgage status and equity first and choose the chapter that protects your home. We help clients in Maryland and Florida. For a free consultation, call 240-896-3253.
This article is general information and not legal advice. For advice about your situation, speak with a licensed attorney.
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