Best Bankruptcy Lawyers in Maryland

About Bankruptcy Law in Maryland, United States

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the federal bankruptcy court. In Maryland, as in the rest of the United States, bankruptcy is governed by federal law within Title 11 of the United States Code, but there are specific state rules and exemptions that apply to residents. Bankruptcy can provide relief from overwhelming debt, stop creditor harassment, and allow a fresh financial start. The main types of bankruptcy for individuals are Chapter 7 (liquidation) and Chapter 13 (repayment plan), while businesses may also consider Chapter 11 (reorganization).

Why You May Need a Lawyer

Navigating bankruptcy can be complex, and mistakes may lead to loss of property, denial of discharge, or even allegations of fraud. Here are common situations when hiring a bankruptcy attorney can be crucial:

• You are facing foreclosure on your home
• Your wages or bank accounts are being garnished
• You are being harassed by creditors
• You have significant unsecured debts, such as credit cards or medical bills
• You are unsure about which type of bankruptcy is best for your situation
• Your assets may be at risk of being seized or liquidated
• You have complicated financial circumstances, such as owning a business or multiple properties
• You want guidance through the detailed paperwork and legal procedures

An experienced bankruptcy lawyer can help protect your rights, ensure accurate filing, and represent you in hearings.

Local Laws Overview

While the overall framework for bankruptcy is federal, Maryland residents must comply with certain state-specific regulations and exemptions. Key aspects to know include:

• State Exemptions: Maryland filers must use state exemption laws to protect certain property from liquidation, such as a portion of home equity (homestead exemption), personal property, retirement accounts, tools of trade, and certain benefits.
• Means Test: To qualify for Chapter 7 bankruptcy, Maryland residents must pass a means test based on median income and allowable expenses.
• Local Procedures: Cases are filed in the U.S. Bankruptcy Court for the District of Maryland, with locations in Baltimore, Greenbelt, and Salisbury.
• Mandatory Credit Counseling: Before filing, all debtors must complete pre-filing credit counseling from an approved agency and post-filing debtor education.
• Automatic Stay Protection: Filing triggers an automatic stay, immediately stopping most collection actions, foreclosures, and garnishments.
• Spousal Property: Maryland is not a community property state, but jointly owned property or debts can affect both spouses in bankruptcy.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 is a liquidation bankruptcy that can wipe out most unsecured debts, but may require you to give up non-exempt assets. Chapter 13 is a reorganization bankruptcy that allows you to keep your property and pay back debts over three to five years through a court-approved payment plan.

Who is eligible to file for bankruptcy in Maryland?

Anyone who lives, does business, or owns property in Maryland can file. Eligibility for Chapter 7 depends on passing the means test, while Chapter 13 requires a steady income and debt limits set by federal law.

Will bankruptcy stop foreclosure or repossession?

Filing for bankruptcy generally triggers an automatic stay, which temporarily halts foreclosure, repossession, and most collection activities. In Chapter 13, you may be able to catch up on missed payments and keep your home or vehicle.

What property can I keep if I file for bankruptcy in Maryland?

Maryland has its own exemption laws that may allow you to protect home equity, personal property, retirement accounts, some wages, tools of trade, and other essentials. Properly applying exemptions is critical to keep as much property as possible.

Does bankruptcy eliminate all debts?

No. Some debts are not dischargeable, including child support, most taxes, student loans (in most cases), alimony, and debts incurred through fraud.

How long will bankruptcy stay on my credit report?

A Chapter 7 bankruptcy stays on your credit report for up to 10 years and Chapter 13 bankruptcy for up to 7 years after completion of your repayment plan.

Can both spouses file together in Maryland?

Yes. Married couples can file jointly or individually. Filing jointly may allow for better protection of jointly owned property and a more complete discharge of shared debts.

What are the costs to file for bankruptcy in Maryland?

There are court filing fees (about $338 for Chapter 7 and $313 for Chapter 13 as of 2024) as well as potential attorney fees, which vary depending on the complexity of your case and the lawyer’s experience.

Will I have to go to court?

Most debtors will attend a brief meeting of creditors (Section 341 meeting) with the bankruptcy trustee. In most cases, court appearances are not required unless there are challenges or disputes.

How long does the bankruptcy process take?

A typical Chapter 7 case may be completed in about three to six months, while Chapter 13 takes three to five years due to the repayment plan.

Additional Resources

If you are seeking more information or assistance, the following resources can be helpful:

• U.S. Bankruptcy Court for the District of Maryland - Provides court locations, filing instructions, and local forms.
• Maryland Volunteer Lawyers Service - Offers free or low-cost legal assistance for eligible filers.
• Maryland Legal Aid - Nonprofit organization providing free civil legal assistance to low-income residents.
• Maryland State Bar Association - Directory to find certified bankruptcy attorneys.
• Local credit counseling agencies - Required for pre-filing and post-filing education.

Next Steps

If you are considering bankruptcy, start by evaluating your financial situation and gathering documents about your income, debts, assets, and expenses. Completing mandatory credit counseling from an approved provider is required before you can file. Consulting with a Maryland bankruptcy attorney is highly recommended to help you choose the right type of bankruptcy, protect your assets using the correct exemptions, and guide you through the process.

To get started, contact a qualified bankruptcy lawyer in your area, or reach out to local legal aid organizations or bar associations for referrals. Remember, taking timely action can help protect your rights and provide the relief you need to move forward.