Maryland Bankruptcy

When an individual or business is unable to pay debts or obligations, they may file a legal proceeding known as bankruptcy. This process helps the debtor discharge their debts or create a repayment plan with affordable payments.

To prevent a filer from losing personal belongings, bankruptcy filers in Maryland may keep certain items under Courts and Judicial Proceedings Section 11-504. These exemptions may include work tools, household goods, clothing, and limited equity in a home through the bankruptcy homestead.

How to File Bankruptcy in Maryland

Bankruptcy in Maryland may be filed by an individual, spouses, or an entity that resides in the United States or a municipality. The filer must also not have had a bankruptcy petition dismissed within the last 180 days due to failure to follow court rules or other improper actions. Before filing, it is important to choose the chapter that fits your situation and complete a credit counseling course from a provider approved by the U.S. Trustee Program. This course covers budgeting, debt options, and the impact of bankruptcy on your finances.

When filing the petition, you must submit the credit counseling certificate and provide statements that list your creditors, the amounts owed, your income, assets, and liabilities, and you must pay the required filing fee. After the clerk of court notifies creditors of the filing, an automatic stay goes into effect, which stops most collection efforts, including telephone calls demanding payment.

A trustee is then assigned to your case and will schedule a 341 meeting to review your documents and confirm that the information you provided is accurate. You must also complete a debtor education course from an approved provider, and the certificate for this second course must be filed before your debt can be discharged.

Maryland Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

In Maryland, most bankruptcy cases are filed under these three main chapters:

Chapter 7

The main goal of a Chapter 7 bankruptcy is to sell nonexempt property and use the proceeds to repay creditors. During the process, you may keep certain property under the Maryland exemptions, while the trustee handles the sale of any remaining nonexempt assets to help pay your creditors. In most Maryland Chapter 7 cases, there is little or no nonexempt property to sell, so the court may grant a discharge after a few months, which releases the filer from personal liability for eligible debts.

Chapter 13

Also called a wage earner’s plan, this chapter allows regular income earners to adjust their debts. Unlike chapter 7, this bankruptcy type enables you to keep your valuable assets while paying off the debt. In addition, you will be granted a discharge after completing your proposed repayment plans.

Chapter 11

This type of bankruptcy allows high-debt individuals and businesses to reorganize their finances while continuing operations. You may submit a plan to restructure debts and repay creditors, which must be approved by the court and supervised by the United States Trustee.

Step-by-Step Checklist for Maryland Filers

While filing for bankruptcy in Maryland, the checklist below may help ensure a successful outcome:

• Know your eligibility status
• Choose the correct chapter for your case
• Complete a credit counseling course
• Submit the credit counseling certificate along with the petition and other financial documents
• Pay the filing fee
• Attend 341 meeting of creditors
• Complete a debtor education course
• File the certificate of completion

Maryland Bankruptcy Court & Record Access

The United States Bankruptcy Court for the District of Maryland operates from two different locations within the state:

Baltimore Division — This division serves central and northern Maryland, including Baltimore City and other counties. It is located at:

Greenbelt Division — This division is responsible for bankruptcy filings in Montgomery, Prince George’s and other nearby counties in the Washington, D.C., metro area. It is situated at:

If you are seeking documents from a bankruptcy case filed in Maryland on or after December 1, 2003, you may view them online through the Public Access to Court Electronic Records (PACER) for a fee of $0.10 per page or use public computer terminals available at the courthouse.

For cases filed before December 1, 2003, you may view them at the courthouse terminals or request the case file from the National Archives and Records Administration (NARA) online or by calling (215) 305-2000.

To save on the cost of visiting the courthouse, you may also use the Voice Case Information System. This automated service requires the debtor’s name, Social Security number, and case number to provide basic case information such as the judge's and attorney's names, case number, chapter, date discharged, and trustee’s name.