Maryland’s New Bankruptcy Law Takes Effect June 1 — Sanchez Garrison & Associates Becomes Leading Resource for Homeowners Seeking Relief
New law significantly increases home equity protections for Maryland homeowners and may allow more people to qualify for Chapter 7 bankruptcy
BALTIMORE, Md., April, 2026 — Sanchez Garrison & Associates, a Maryland most highly rated consumer bankruptcy law firm, today announced it is a leading resource in a major change in Maryland bankruptcy law that could substantially expand relief for homeowners across the state. The new law has already been approved and will apply to bankruptcy cases filed on or after June 1, 2026.
Under Senate Bill 939, Maryland’s exemption for owner-occupied residential real property in bankruptcy proceedings will increase to $125,000 for most individuals. The law also extends the exemption to certain residential real property held in a revocable trust.
“This law is long overdue,” said Melissa Swaby, attorney at Sanchez Garrison & Associates. “For too many Maryland residents, the prior exemption amount was simply too low to protect the homes they worked hard to keep. This change gives many people a real opportunity to seek debt relief without risking the loss of their home.”
The previous law tied the residential real property exemption to the federal amount under 11 U.S.C. § 522(d)(1), which the fiscal note states was $31,575 as of April 1, 2025. Senate Bill 939 replaces that framework with the much larger Maryland-specific exemption amounts.
According to Sanchez Garrison & Associates, the impact of this change could be substantial. In the past, some Maryland homeowners had too much equity to safely file Chapter 7, but not enough income to sustain a Chapter 13 repayment plan. Others were forced to delay filing or had no practical bankruptcy option at all. The firm expects the new law to open the door for many more Maryland residents to obtain meaningful relief.
“This is the kind of legal change that can alter a family’s financial future,” said Alex Sanchez, attorney at Sanchez Garrison & Associates. “There were many situations where the law did not fit the client’s reality, even when that person had done everything right. Now Maryland has recognized that homeowners deserve stronger protection.”
The bill also repeals existing provisions that restricted repeat claims of the same residential real property exemption in certain situations. Beginning in fiscal 2028, the exemption amounts will be adjusted annually based on changes in the Consumer Price Index and rounded to the nearest $25.
Sanchez Garrison & Associates is encouraging Maryland residents not to wait until June 1 to seek legal advice. “June 1 is the filing date under the new law, but preparation should begin now,” said David W. Schropfer, who leads the Intake Team and Client Relations for the firm. “Anyone in Maryland who owns a home and is struggling with debt should contact Sanchez Garrison right away so the firm can evaluate the case, prepare the filing, and be ready to act as soon as the law takes effect.”
The firm is positioning itself as a leading public resource on the new law, with educational articles, videos, and client guidance designed to help Maryland residents understand how the change may affect their bankruptcy options.
About Sanchez Garrison & Associates
Sanchez Garrison & Associates is a Maryland law firm focused exclusively on consumer bankruptcy. The firm helps clients address overwhelming debt, stop garnishments, prevent foreclosures, and pursue a fresh financial start through Chapter 7 and Chapter 13 bankruptcy. By combining deep bankruptcy experience with clear communication and a client-centered approach, Sanchez Garrison & Associates helps Maryland residents understand their options and move forward with confidence.
Media Contact:
David W. Schropfer
Sanchez Garrison & Associates
410-734-2200
http://www.sanchezgarrison.com