SB 939 Maryland Senate · 2026 Regular Session

Bankruptcy Proceedings - Exemptions From Execution - Residential Real Property

SB 939 expands bankruptcy exemptions for Maryland residents by including residential property held in a revocable trust as eligible for protection. It increases the exemption amount for owner-occupied homes to $150,000 for most filers and $300,000 for individuals aged 60+ who are veterans or have a long-term disability certified by a physician. The bill adjusts these amounts annually based on the Consumer Price Index and rounds to the nearest $25. This directly affects people filing for bankruptcy in Maryland who own homes through revocable trusts or meet the higher exemption criteria.

Issues: ✓ Housing ✓ Veterans

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

Senate Passage

Apr 2026

House of Delegates Passage

Apr 2026

Signed into Law

May 2026

Introduced Feb 6, 2026 Signed May 12, 2026

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What changed between versions

Third - Bankruptcy Proceedings - Exemptions From Execution - Residential Real Property → Enrolled - Bankruptcy Proceedings - Exemptions From Execution - Residential Real Property · 5 edits · May 12, 2026

MODERATE

The bill was finalized for signature by the Governor, changing its status from a draft Senate bill to an Enrolled Bill. Substantively, the text includes significant amendments to bankruptcy exemption laws, specifically expanding the definition of 'Settlor' and clarifying that residential real property held in a revocable trust is eligible for the owner-occupied exemption. Additionally, the residential property exemption limit was increased to $125,000 for individuals, with a cap of $125,000 total if multiple people claim the exemption for the same property.

Scope change

The bill's scope now explicitly includes residential real property held in a revocable trust under the owner-occupied exemption, whereas the original draft had conflicting or less clear language regarding this specific asset type.

ELIGIBILITY

Added explicit language confirming that residential real property held in a revocable trust is eligible for the owner-occupied exemption.

DEFINITION

Repealed and reenacted the definition of 'Settlor' to ensure consistency between the Courts and Judicial Proceedings article and the Estates and Trusts article.

REQUIREMENT

Increased the exemption limit for owner-occupied residential real property to $125,000 for an individual, replacing the previous reference to federal amounts.

Added a new provision limiting the total exemption to $125,000 if multiple individuals claim the exemption for the same property.

TECHNICAL

Changed the bill's status from 'Senate Bill' to 'Enrolled Bill' and updated the header to indicate it was presented to the Governor.

Floor votes · Senate Mar 27, 2026 · House of Delegates Mar 30, 2026

How they voted

47–0

Passed · 2 other

Total votes 49

Mar 27, 2026

D Democratic36

34 Yea 2

94% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 12, 2026

Signed into law

Approved by the Governor - Chapter 400

executive

Apr 13, 2026

Upper · Passed

Passed Enrolled

upper

Apr 13, 2026

Introduced

Senate Concurs House Amendments

upper

Apr 13, 2026

Lower · Passed

Third Reading Passed

lower

Apr 11, 2026

Lower · Passed

Favorable with Amendments {

lower

Apr 11, 2026

Lower · Passed

Favorable with Amendments Report by Economic Matters

lower

Mar 30, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (129-7-6)

house of delegates

Mar 27, 2026

Senate · Passed

Senate Vote: pass (47-0-2)

senate

Mar 20, 2026

Committee

Referred Economic Matters

lower

Mar 19, 2026

Upper · Passed

Third Reading Passed

upper

Mar 18, 2026

Upper · Passed

Favorable with Amendments {

upper

Mar 18, 2026

Upper · Passed

Favorable with Amendments Report by Judicial Proceedings

upper

Feb 6, 2026

Committee

First Reading Judicial Proceedings

upper

1 primary · 0 co-sponsors