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How Do You File for Bankruptcy in Maryland: A Comprehensive Guide
Understanding Bankruptcy
Filing for bankruptcy is a significant decision that involves legal procedures designed to help individuals or businesses eliminate or repay their debts under the protection of the bankruptcy court. In Maryland, understanding the nuances of filing can help ensure a smoother process.
Types of Bankruptcy
- Chapter 7: This is also known as liquidation bankruptcy. It involves the sale of a debtor's non-exempt property and the distribution of the proceeds to creditors.
- Chapter 13: Known as reorganization bankruptcy, this type involves a repayment plan that allows the debtor to pay back debts over a period of three to five years.
Steps to File for Bankruptcy in Maryland
Consult a Bankruptcy Attorney
Before proceeding with filing, it is crucial to consult with a legal expert. A bankruptcy attorney omaha can provide valuable advice, even if you're not in that locale, to help you understand the implications and guide you through the process.
Gather Necessary Documents
Collecting all necessary documents is an essential step. This includes income records, a list of debts, assets, and expenses.
Attend Credit Counseling
Before filing, you must complete a credit counseling session from an approved agency. This certificate is necessary to proceed with the bankruptcy filing.
Submitting Your Bankruptcy Forms
File your bankruptcy petition and other required forms with the Maryland bankruptcy court. This includes a detailed list of your current income sources, major financial transactions for the last two years, monthly living expenses, debts (both secured and unsecured), and property.
After Filing for Bankruptcy
Meeting of Creditors
After filing, you must attend a meeting of creditors, also known as a 341 meeting. Here, you will answer questions about your financial status and the documents you've submitted.
Completion of Financial Management Course
To discharge your debts, you must complete a financial management instructional course after filing for bankruptcy.
It's also beneficial to consider perspectives from various locations, such as consulting a bankruptcy attorney phoenix az, for a broader understanding.
Frequently Asked Questions
What is the cost of filing for bankruptcy in Maryland?
The filing fees vary depending on the type of bankruptcy. For Chapter 7, the fee is approximately $338, while Chapter 13 costs around $313. Additional costs include attorney fees and credit counseling charges.
Can I keep my house and car after filing for bankruptcy?
It depends on the type of bankruptcy and your specific circumstances. Under Chapter 13, you may keep your property if you continue making payments. Chapter 7 may require selling non-exempt assets, but there are exemptions that protect some of your equity in a home or car.
How long does bankruptcy stay on my credit report?
A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while Chapter 13 bankruptcy generally stays on your report for seven years.
It now costs $306 to file for bankruptcy under chapter 7 and $281 to file for bankruptcy under chapter 13, whether for one person or a married couple.
Here, you'll find an explanation of Chapters 7 and 13, checklists to help you understand the process and stay organized, and Maryland's property exemption laws ...
We provide helpful tips and resources to help you file Chapter 7 bankruptcy in your state without a lawyer.
