Bill > SB939

This bill modifies Maryland law regarding property that individuals can protect from creditors during bankruptcy proceedings, specifically concerning their homes. It clarifies that the exemption for owner-occupied residential real property now includes property held in a "revocable trust," which is defined as a trust that the person who created it (the "settlor") can cancel or change without the agreement of the trustee or anyone with a conflicting interest. Additionally, the bill alters the maximum amount that can be exempted for owner-occupied residential real property, setting it at $125,000 for an individual, with provisions for this amount to be adjusted annually for inflation starting in fiscal year 2028. This change aims to update the exemption amount and broaden its applicability to certain trust arrangements, providing debtors with more protection for their primary residence in bankruptcy.