If you’re considering filing bankruptcy in Maryland, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy in Maryland, like in most states, is a legal process that allows individuals and businesses to obtain relief from overwhelming debt and start fresh financially. However, not everyone is automatically qualified to file for bankruptcy. To determine if you are eligible, you must meet certain criteria and consider various factors.

1. Residency Requirement: To file for bankruptcy in Maryland, you must meet the state’s residency requirement. Generally, you should have lived in Maryland for at least 91 days before filing your bankruptcy petition. If you haven’t met this requirement, you may need to file in the state where you have lived for the majority of the 180 days prior to the 91-day period preceding your filing.
2. Types of Bankruptcy: There are two primary types of bankruptcy for individuals: Chapter 7 and Chapter 13. Each has its own set of qualifications and considerations.a. Chapter 7 Bankruptcy:
   • To qualify for Chapter 7 bankruptcy, you must pass the means test, which evaluates your income and expenses. The means test compares your income to the median income for a household of your size in Maryland. If your income is below the median, you generally qualify for Chapter 7. If it’s above the median, further calculations are required to determine eligibility.
   • If you can demonstrate that you have insufficient disposable income to repay your debts, you are likely eligible for Chapter 7.
   b. Chapter 13 Bankruptcy:
   • Chapter 13 bankruptcy involves a repayment plan to pay off some or all of your debts over a period of three to five years. To qualify, you must have a stable source of income to make monthly payments to the bankruptcy trustee.
   • Your unsecured debts (such as credit card debt) have limits which are periodically adjusted for inflation.
   • Chapter 13 may be a good option if you are facing foreclosure and want to save your home or if you have significant non-exempt assets that you wish to protect.
3. Credit Counseling: Before filing for bankruptcy in Maryland, you are required to complete a credit counseling course from an approved agency. This course helps you explore alternatives to bankruptcy and assess your financial situation.
4. Bankruptcy Education: After filing, you must also complete a debtor education course, which teaches you financial management skills to help you avoid future financial difficulties.
5. Prior Bankruptcy Discharge: If you have received a bankruptcy discharge in the past, there are waiting periods before you can file for bankruptcy again. For example, if you previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of filing to file another Chapter 7 case.
6. Bankruptcy Attorney: While not a strict qualification requirement, it is highly advisable to seek legal counsel when considering bankruptcy. An experienced bankruptcy attorney can help you navigate the complex process, assess your eligibility, and ensure your rights are protected throughout the proceedings.
7. Full Disclosure: When filing for bankruptcy in Maryland, it is crucial to provide full and accurate information about your financial situation, assets, income, and debts. Failing to do so can result in your case being dismissed or even lead to legal consequences.

Whether you are qualified to file for bankruptcy in Maryland depends on several factors, including your income, residency, type of bankruptcy, and financial circumstances. It is essential to consult with a bankruptcy attorney to assess your eligibility and explore the most appropriate bankruptcy chapter for your situation. Bankruptcy is a significant financial decision, and understanding the qualifications and considerations is essential before proceeding with the process.

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Do You Need a Lawyer to File For Bankruptcy in Maryland?

Filing for bankruptcy in Maryland is a legal process that can be complex, and while you are not required to have a lawyer, it is highly advisable to have legal representation to navigate the intricacies of the bankruptcy system effectively. Here are several reasons why you should consider hiring an attorney when filing for bankruptcy in Maryland:

1. Understanding the Bankruptcy Code: The United States Bankruptcy Code is a complex set of federal laws that govern bankruptcy proceedings. Understanding the nuances of these laws, as they apply in Maryland, can be challenging for individuals without legal training. An experienced bankruptcy attorney is well-versed in the Bankruptcy Code and can help you navigate it effectively.
2. Assessing Your Eligibility: Determining whether you qualify for bankruptcy under Chapter 7 or Chapter 13 requires a thorough analysis of your financial situation, income, and expenses. A bankruptcy attorney can evaluate your eligibility by conducting a means test, calculating your disposable income, and determining the most suitable chapter for your specific circumstances.
3. Protecting Your Assets: Bankruptcy exemptions in Maryland allow you to protect certain assets from being sold to repay creditors. An attorney can help you take full advantage of these exemptions and ensure that your valuable assets, such as your home, car, and personal belongings, are safeguarded to the extent allowed by law.
4. Preparing and Filing Documents: The bankruptcy process involves substantial paperwork, including your bankruptcy petition, schedules of assets and liabilities, income and expenses, and a repayment plan (in Chapter 13 cases). Your attorney can assist you in accurately completing these documents, reducing the risk of errors that could delay your case or lead to complications.
5. Representation in Court: While most bankruptcy cases in Maryland do not require a formal appearance in court, there may be hearings and meetings with creditors where having an attorney can be invaluable. Your attorney can represent your interests, address any concerns raised by creditors or the trustee, and ensure that your rights are protected throughout the process.
6. Negotiating with Creditors: In some cases, your attorney may be able to negotiate with creditors to reach settlements or modify the terms of your debt. This can help you avoid bankruptcy altogether or improve the terms of your bankruptcy plan.
7. Guidance on Rebuilding Credit: Bankruptcy can have a significant impact on your credit score, and it’s important to have a plan for rebuilding your credit after your bankruptcy case is resolved. An attorney can provide guidance on improving your financial habits and managing credit responsibly post-bankruptcy.
8. Avoiding Common Pitfalls: Bankruptcy comes with specific rules and procedures that must be followed precisely. Failing to adhere to these rules can result in your case being dismissed, assets being liquidated, or even allegations of bankruptcy fraud. An attorney’s expertise can help you avoid these pitfalls.
9. Emotional Support and Peace of Mind: Dealing with overwhelming debt and the prospect of bankruptcy can be emotionally taxing. Having a compassionate and knowledgeable attorney by your side can provide emotional support and peace of mind during a challenging time.

While you are not legally required to have a lawyer to file for bankruptcy in Maryland, the decision to hire one is highly recommended. An experienced bankruptcy attorney can provide invaluable assistance in navigating the complex bankruptcy process, protecting your assets, and ensuring that your rights and interests are safeguarded throughout the proceedings. It’s important to consult with a qualified attorney to assess your specific situation and determine the best course of action for your financial well-being.

Cost to File Chapter 7 Bankruptcy in Maryland

Filing for Chapter 7 bankruptcy in Maryland involves several costs and fees that you should be aware of. The total cost can vary depending on your specific circumstances and whether you choose to hire an attorney. Here’s a breakdown of the key expenses associated with filing Chapter 7 bankruptcy in Maryland:

1. Filing Fee: The primary cost associated with filing Chapter 7 bankruptcy is the filing fee required by the bankruptcy court. The filing fee for Chapter 7 bankruptcy in Maryland was $360. However, these fees can change over time, so it’s essential to check the most up-to-date fee schedule on the U.S. Courts website or by contacting the Maryland bankruptcy court.
2. Credit Counseling and Debtor Education Courses: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically cost between $28 and $58 each. However, some agencies may offer reduced fees or fee waivers based on your income.
3. Attorney’s Fees (If You Choose to Hire One): While you are not required to hire an attorney to file Chapter 7 bankruptcy, it is highly recommended, given the complexity of the process. Attorney fees can vary widely depending on your location, the complexity of your case, and the attorney’s experience. On average, you can expect to pay between $1,180 and $2,720 for legal representation in a Chapter 7 bankruptcy case. Some attorneys may offer payment plans to help you manage this expense.
4. Credit Report Fee: Your attorney may obtain a copy of your credit report to ensure that all your debts are included in your bankruptcy filing.
5. Miscellaneous Costs: There may be other minor expenses associated with your bankruptcy, such as postage, notary fees, and transportation costs for attending meetings and hearings. These costs can add up, but they are relatively modest compared to the other fees.
6. Financial Management Course: After filing for bankruptcy, you are required to complete a financial management course.

It’s important to note that if you cannot afford to pay the filing fee in full upfront, you may be eligible for a fee waiver or fee installment plan. You will need to submit a formal request to the bankruptcy court and demonstrate that you meet the income criteria for such assistance.

Additionally, if you hire an attorney, they can discuss your financial situation with you and explore options for covering their fees. Some attorneys offer free initial consultations to assess your case and provide fee estimates.

Cost to File Chapter 11 Bankruptcy in Maryland

Filing for Chapter 11 bankruptcy in Maryland can be a complex and expensive process, primarily because Chapter 11 is typically used by businesses seeking to reorganize their financial affairs and continue operations. The costs associated with a Chapter 11 bankruptcy can vary significantly depending on the size and complexity of the case. Here’s a breakdown of the key expenses you can expect when filing for Chapter 11 bankruptcy in Maryland:

1. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in Maryland is substantial compared to other bankruptcy chapters. The filing fee for a Chapter 11 case was $1,840. This fee can change over time, so it’s crucial to check the most up-to-date fee schedule on the U.S. Courts website or by contacting the Maryland bankruptcy court.
2. Attorney’s Fees: Chapter 11 bankruptcy cases are highly complex and require extensive legal expertise. Therefore, it is almost always necessary to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees for Chapter 11 cases can vary significantly, depending on the complexity of the case, the size of the business, and the attorney’s experience. In many Chapter 11 cases, legal fees can run into tens of thousands of dollars or more. Some attorneys may offer payment plans to help businesses manage these costs.
3. Retention of Professionals: In a Chapter 11 case, you may need to hire other professionals such as accountants, appraisers, and financial advisors to assist in the restructuring process. These professionals will charge fees for their services, which can add to the overall cost of your bankruptcy.
4. Court Costs and Administrative Expenses: Throughout the Chapter 11 process, there are various administrative costs associated with filing motions, attending court hearings, and communicating with creditors. These costs can accumulate and contribute to the overall expense of the bankruptcy.
5. U.S. Trustee Fees: The U.S. Trustee program oversees bankruptcy cases and may charge quarterly fees based on the company’s disbursements, which can vary depending on the size and complexity of the case.
6. Filing of Required Documents: Chapter 11 cases involve significant paperwork, including the filing of a detailed disclosure statement and a plan of reorganization. The cost of preparing and filing these documents can vary depending on the complexity of your business and the services of your legal team.
7. Creditor Committee Fees: In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of creditors. The costs associated with the operation of this committee may be passed on to the debtor company.

It’s important to recognize that Chapter 11 bankruptcy is a complex and resource-intensive process, primarily designed for businesses and individuals with substantial assets or debts. The costs associated with Chapter 11 are often significantly higher than those for other bankruptcy chapters. Businesses considering Chapter 11 should carefully weigh the potential benefits of reorganization against the substantial expenses involved and seek professional guidance to navigate the process effectively. Consulting with an experienced bankruptcy attorney who specializes in Chapter 11 cases is crucial to understanding the full scope of expenses and developing a plan for managing them while pursuing a successful bankruptcy reorganization.

Cost to File Chapter 13 Bankruptcy in Maryland

Filing for Chapter 13 bankruptcy in Maryland involves several costs and fees that individuals should be aware of. Chapter 13 bankruptcy is designed for individuals who have a regular source of income and want to create a repayment plan to address their debts. Here’s a breakdown of the key expenses associated with filing Chapter 13 bankruptcy in Maryland:

1. Filing Fee: The primary cost associated with filing Chapter 13 bankruptcy in Maryland is the filing fee required by the bankruptcy court. The filing fee for a Chapter 13 case in Maryland is $358. However, these fees can change over time, so it’s essential to check the most up-to-date fee schedule on the U.S. Courts website or by contacting the Maryland bankruptcy court.
2. Attorney’s Fees: While it is possible to file Chapter 13 bankruptcy without an attorney, it is highly recommended to have legal representation due to the complexity of the process. Attorney fees for Chapter 13 cases can vary depending on your location, the complexity of your case, and the attorney’s experience. On average, you can expect to pay between $2,250 and $4,300 for legal representation in a Chapter 13 bankruptcy case. Some attorneys may offer payment plans to help you manage this expense.
3. Credit Counseling and Debtor Education Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and debtor education courses from approved agencies. These courses typically cost between $28 and $60 each. However, some agencies may offer reduced fees or fee waivers based on your income.
4. Trustee’s Fee: In a Chapter 13 case, you will make monthly payments to a bankruptcy trustee, who will then distribute the funds to your creditors according to your court-approved repayment plan. The trustee is entitled to a fee for administering your case, typically around 10% of the amount paid to creditors. This fee is included in your monthly payment and is not paid directly by you.
5. Miscellaneous Costs: There may be other minor expenses associated with your Chapter 13 bankruptcy, such as postage, notary fees, and transportation costs for attending meetings and hearings. These costs are relatively modest compared to the other fees.

Chapter 13 bankruptcy can provide a structured and manageable way for individuals to repay their debts over time while protecting their assets. While there are costs associated with filing Chapter 13, it is often a viable option for those with a steady income who want to regain control of their financial situation and avoid the liquidation of assets that can occur in Chapter 7 bankruptcy.

Reliable Bankruptcy Attorneys in Maryland

Below is a list of reputable bankruptcy attorneys in Maryland. They can help you with both personal and business bankruptcy information.

Bankruptcy Attorneys in Baltimore, MD
201 N Charles St #1504, Baltimore, MD 21201, United States

James R. Logan PA
2419 Maryland Ave, Baltimore, MD 21218, United States

Steiner Law Group, LLC
115 Sudbrook Ln #206, Baltimore, MD 21208, United States

Charlene Wilson Law Office
100 S Charles St Suite 1740, Baltimore, MD 21201, United States

Grossbart Portney & Rosenberg
One Charles Center, 100 N Charles St 20th Floor, Baltimore, MD 21201, United States

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Baltimore

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