Bethesda, MD asked in Consumer Law for Maryland

Q: I am a Maryland resident. Do my house and my IRA's (roth and rollover) have legal and creditor protection in a lawsuit?

For example, if I am involved in an auto accident can the other party attach my house or above retirement assets?

Is there a definitive answer or is this a gray area in Md law? Depending on the answer is there still a role for an umbrella policy to play in the picture? Thank you.

Jim

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1 Lawyer Answer
Cedulie Renee Laumann
Cedulie Renee Laumann
Answered
  • Crownsville, MD
  • Licensed in Maryland

A: Maryland law does not protect a house from claims of the owner's creditors. Generally speaking a house and most other assets are "up for grabs" by a judgment creditor. The law offers a very limited exemption of about $6,000 from collection but such exemption is not automatic. If titled properly, real property held by a married couple may be exempt from collection activity from a creditor of only one spouse while both are living.

Generally speaking retirement accounts are protected from most collection activity.

While not legal advice I hope that this general information helps.

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