Legal Question in Real Estate Law in Maryland

Re: Does Maryland have a Homestead Law?

Maryland does not have unlimited homestead exemptions like a few states. Your real estate is subject to creditor action. You are entitled to a minimal amount of exemptions from execution, but no more than $5500 in bankruptcy or $3000 outside of bankruptcy. There is no such thing as "homestead insurance." You should make sure that you have sufficient liability insurance in the form of car insurance and homeowners insurance, but that won't help after an accident happens.

Note that if you are married, you may be able to protect your home to a certain extent by holding title as tenants by the entireties. Acts of one spouse cannot encumber this form of ownership. In bankruptcy, to benefit from this protection, you need to have no joint debts.

Re: Does Maryland have a Homestead Law?

Yes, unless your home is titled to provide some protection, the injured party can go after your home. If you are at fault or negligent and are not willing to settle properly then the injured party should go after your home. This is why you should carry adequate insurance. State minimum is not adequate for any purpose except for satisfying the most mininal legal requriement.

The injured party can also seek to execute against other assets as well as get a garnishment order. You should obtain an attorney.