If you own a home in Maryland and have been told that bankruptcy may not protect you, that may be about to change. A new Maryland law has already been approved and will apply to bankruptcy cases filed on or after June 1, 2026. It dramatically increases the amount of home equity many Maryland residents can protect in bankruptcy, expands protections for certain homeowners, and removes barriers that previously kept some people from getting relief at all.

At Sanchez Garrison & Associates, this is not a side issue for us. Bankruptcy is what we do every day. As this law takes effect, our firm is positioned to be the leading resource for Maryland residents who need a clear explanation of what changed, who qualifies, and what to do next.

Why This Law Matters So Much

For years, many Maryland homeowners were stuck in an impossible position.They had too much equity in their homes to safely file a Chapter 7 bankruptcy, but not enough income to realistically succeed in a Chapter 13 repayment plan. In some cases, that meant people who genuinely needed relief had no practical bankruptcy option at all.

Attorney Melissa Swaby of Sanchez Garrison explained it plainly: this law was overdue because too many debtors needed more meaningful protection for the homes they had worked hard to keep. In her words, the previous protections were simply too small for the reality many Maryland families face. That is exactly why this law matters. It recognizes that a home is not just an asset on paper. It is where a family lives. It is what someone may have spent years or decades building. And in many cases, it should not be exposed to creditors simply because life took an unexpected turn.

What Changed Under The New Law

Under the new statute, the Maryland homestead exemption in bankruptcy increases to:

• $150,000 for most individuals
• $300,000 for an individual who is at least age 60 and is either a veteran or a person with a qualifying disability

If multiple people in the same bankruptcy case claim the exemption in the same property, the total exemption cannot exceed $300,000. The law also makes clear that the exemption includes certain owner-occupied residential property held in a revocable trust. Beginning in fiscal 2028, these exemption amounts will be adjusted annually based on changes in the Consumer Price Index. The law also repeals prior restrictions that prevented repeat claims of the exemption on the same property in certain situations.

Most importantly, the law applies prospectively to bankruptcy proceedings filed on or after June 1, 2026.

What That Means In The Real World

This is not an abstract legal update. It is a change that can affect whether someone can file bankruptcy at all. Our attorneys have seen many situations in which a Maryland resident did everything right. They bought a home, paid the mortgage, built equity, and tried to be responsible. Then life happened. A job loss. An illness. A death in the family. Mounting credit card debt. A looming foreclosure. A judgment creditor. Before this law, some of those people had no good path forward. They could not safely file a Chapter 7 because of the equity in their homes. They could not afford a Chapter 13. And filing at the wrong time could actually make their situation worse.

Now, for many Maryland homeowners, the answer may finally be yes.

This law may open the door to Chapter 7 for many more homeowners

One of the most significant effects of this change is that many homeowners who previously may have been pushed into Chapter 13, or shut out of bankruptcy relief entirely, may now be eligible for Chapter 7 instead. That matters because Chapter 7 is often the faster and more direct path to a fresh financial start.

As attorney Alex Sanchez explained, the practical barriers that used to block homeowners from Chapter 7 have now been substantially reduced. In other words, many people who were previously told they had too much equity may now have a very different legal analysis under Maryland law.

A more human approach to bankruptcy

One theme came through clearly from our attorneys when discussing this law: bankruptcy is not just about statutes and numbers. It is about people.

At Sanchez Garrison, we understand that bankruptcy clients often come to us feeling embarrassed, overwhelmed, or afraid. They are worried about their homes, their wages, their bank accounts, and their future. They need lawyers who can explain a complicated process in plain English and guide them with clarity and compassion.

That is how we practice.

Melissa Swaby described it best:

“Bankruptcy law should be approached with humanity. Clients need transparency. They need clear answers. They need to know someone is walking through this with them.”

That is exactly what our firm provides.

Do not wait until June 1 to contact us

This part is critical. Even though the new law applies to cases filed on or after June 1, 2026, you should not wait until June 1 to reach out. If this law may help you, the time to speak with us is now. That gives our team time to review your situation, analyze your home equity, determine how the new law applies to your case, prepare your documents, and put you in position to file promptly once the law takes effect. At Sanchez Garrison, we begin work quickly. We do not sit idle while the clock runs. We get started right away so that when the time comes, your case is ready.

Why Maryland residents should come to Sanchez Garrison first

There is very little useful public guidance right now explaining what this new law means for real people in Maryland. That is exactly why Sanchez Garrison is stepping forward. We are not trying to be one more law firm posting generic bankruptcy content. We are building a practical, Maryland-specific resource to help people understand:

• whether this new law changes their options
• whether they may now qualify for Chapter 7
• how much home equity may be protected
• whether waiting until June 1 could benefit them
• what steps they should take right now

This is what we do. Every day. For Maryland consumers.

If you have spoken to another firm and they are not discussing this change with you, that is a problem. This law is significant. It can change outcomes. And it deserves careful, experienced analysis.

Talk to Sanchez Garrison now

If you own a home in Maryland and are struggling with debt, foreclosure risk, judgments, or wage garnishment, this new law may change your options in a major way. The law is approved. The effective date is coming. The time to prepare is now.

Contact Sanchez Garrison & Associates today to find out whether Maryland’s new bankruptcy law could help you protect your home and get the fresh start you deserve.