How do I file bankruptcy in Maryland?

If you find yourself drowning in debt and are considering filing for bankruptcy in Maryland, you may feel overwhelmed and unsure of where to start. Luckily, the process of filing bankruptcy in Maryland is relatively straightforward. In this article, we will guide you through the necessary steps to help you understand how to file bankruptcy in Maryland.

How do I file bankruptcy in Maryland?

To file bankruptcy in Maryland, you must follow these steps:

1. Educate yourself: Familiarize yourself with the two main types of bankruptcy available to individuals in Maryland: Chapter 7 and Chapter 13. Understand the eligibility requirements and the consequences of each.

2. Get credit counseling: Attend a credit counseling course from an approved agency within 180 days before filing for bankruptcy.

3. Gather financial documents: Collect all necessary financial documents such as bank statements, tax returns, pay stubs, and a list of your assets and debts.

4. Complete bankruptcy forms: Fill out the official bankruptcy forms, including the petition, schedules, and statement of financial affairs. Provide accurate information about your financial situation.

5. File your bankruptcy petition: Submit your completed bankruptcy forms at the nearest Maryland bankruptcy court. Pay the required filing fee, unless you qualify for a fee waiver.

6. Automatic stay: Once your petition is filed, an automatic stay will go into effect, providing immediate relief from collections and legal actions by your creditors.

7. Attend the meeting of creditors: About a month after filing your petition, you will be required to attend a meeting of creditors, where you will answer questions under oath about your financial affairs. Creditors may attend, but they rarely do.

8. Complete a debtor education course: Within 60 days of the meeting of creditors, you must complete a debtor education course from an approved agency to receive a bankruptcy discharge.

9. Receive the bankruptcy discharge: Approximately two to three months after the meeting of creditors, the court will issue a bankruptcy discharge, which eliminates eligible debts.

10. Follow post-bankruptcy obligations: After receiving your discharge, comply with any post-bankruptcy requirements, such as attending financial management courses or surrendering any non-exempt assets.

FAQs:

1. Can I choose which type of bankruptcy to file?

Yes, depending on your financial situation and eligibility, you can choose between Chapter 7 and Chapter 13 bankruptcy.

2. What are the income requirements for Chapter 7 bankruptcy in Maryland?

To qualify for Chapter 7 bankruptcy in Maryland, your monthly income must be below the state’s median income level for your household size.

3. How does Chapter 13 bankruptcy work in Maryland?

Chapter 13 bankruptcy allows you to create a repayment plan to pay off your debts over a period of three to five years.

4. Do I need an attorney to file bankruptcy in Maryland?

While it is possible to file bankruptcy on your own, working with an experienced bankruptcy attorney can provide guidance and ensure a smoother process.

5. Can bankruptcy stop foreclosure in Maryland?

Yes, filing for bankruptcy triggers an automatic stay, which can temporarily halt foreclosure proceedings and provide an opportunity to negotiate with your lender.

6. Will bankruptcy wipe out all my debts?

Bankruptcy can eliminate most unsecured debts such as credit card debt or medical bills, but some debts like student loans or child support obligations are generally not dischargeable.

7. What property can I keep in bankruptcy?

Maryland offers various exemptions that allow you to keep a certain amount of equity in your home, vehicle, personal belongings, retirement accounts, and more.

8. How long does bankruptcy stay on my credit report?

Chapter 7 bankruptcy can remain on your credit report for up to ten years, while Chapter 13 bankruptcy may appear for up to seven years.

9. Can I file bankruptcy more than once?

Yes, but there are time limitations. You can file Chapter 7 bankruptcy again after eight years and file Chapter 13 bankruptcy after two years.

10. Will I lose my job if I file bankruptcy?

No, it is illegal for an employer to discriminate against you solely because you filed for bankruptcy.

11. What happens if I forget to include a debt in my bankruptcy?

It is important to include all debts in your bankruptcy filing. If you unintentionally forget a debt, it may still be discharged, but you should inform your attorney or the court as soon as possible.

12. Can I keep my credit cards after filing bankruptcy?

Credit cards are typically canceled during bankruptcy, and it may be challenging to obtain new credit in the immediate aftermath. However, you can rebuild your credit over time.

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