When Should You File for Bankruptcy in Maryland? Why Timing Is Everything

Written By Iris Kwon

Deciding when to file for bankruptcy is one of the most important financial decisions you'll ever make. File too soon, and you may lose a valuable asset you could have kept. Wait too long, and you might forfeit wages to garnishment or judgments that can’t be recovered.

If you're in Maryland and are overwhelmed by debt or already facing a wage garnishment, understanding the timing of your bankruptcy filing could make or break your financial recovery.

Timing Is Critical: File Too Early or Too Late, and You Risk Losing Out

Bankruptcy is a legal tool—but using it at the wrong time can cost you. Here's why:

  • Filing too early: You might trigger the loss of assets you didn’t yet have protection for, such as a tax refund, inheritance, or equity in your home that could've been exempt with more planning.

  • Filing too late: If your wages are being garnished, the money already taken usually can't be recovered—even if you file later. You could also face judgments, liens, or even repossessions.

  • Smart timing: With the right attorney guidance, you can time your filing to protect your income, assets, and long-term financial future.

How to File for Bankruptcy in Maryland to Stop a Garnishment (Step-by-Step)

If your paycheck is being garnished, bankruptcy can stop it immediately. Here’s how the process works from start to finish.

Step 1: Schedule a Free Consultation with a Bankruptcy Attorney

Talk to a Maryland-based bankruptcy lawyer (like our team at Bankruptcy Near Me) to review:

  • Your income, assets, and expenses

  • Whether you qualify for Chapter 7 (liquidation) or Chapter 13 (repayment)

  • Whether wage garnishment can be stopped immediately

  • The best timing for your filing to protect your finances

Step 2: Gather Your Financial Documents

To prepare your case, you’ll need:

  • 6 months of pay stubs

  • 2 years of tax returns

  • Bank statements

  • A list of all debts and creditors

  • Proof of monthly expenses

  • Any garnishment notices or court documents

Step 3: Take the Mandatory Credit Counseling Course

This is a short online course (usually takes under 90 minutes) that must be completed before you can file your case.

Step 4: File Your Case with the United States Bankruptcy Court for the District of Maryland

Once your case is filed, an automatic stay is triggered that immediately stops garnishments, lawsuits, collection calls, and bank levies.

Where Is the Bankruptcy Court in Maryland?

If you live in the Washington, D.C. metro area, your case will likely be filed in the Greenbelt Division:

  • U.S. Bankruptcy Court – District of Maryland

    • Greenbelt Division

    • Address: 6500 Cherrywood Lane, Greenbelt, MD 20770

    • Phone: (301) 344-8018

    • Hours: 8:45 AM – 4:00 PM, Monday to Friday

Other cases may be filed in the Baltimore Division depending on your county.

  • Baltimore Division

  • Address: 101 W Lombard St, Baltimore, MD 21201

  • Phone: (410) 962-2688

  • Hours: 8:45 AM – 4:00 PM, Monday to Friday

Step 5: Notify Your Employer Immediately

As soon as your case is filed and you receive a case number, your attorney will send a copy of the Notice of Bankruptcy Filing to your payroll department. This stops the garnishment before your next paycheck.

Step 6: Take the Post-Filing Financial Management Course

Also called the Debtor Education Course, this second required course ensures you understand budgeting and credit use after bankruptcy. It must be completed before you can receive a discharge.

Step 7: Attend the 341 Meeting of Creditors

This is a short meeting (often conducted by phone or Zoom) where the bankruptcy trustee confirms your identity and asks basic questions about your case.

Step 8: Receive Your Discharge and Close the Chapter

In a Chapter 7, discharge usually happens 3–4 months after filing. In a Chapter 13, it comes after completion of the 3–5 year repayment plan.

Your eligible debts are wiped out, garnishments are permanently stopped, and creditors can no longer sue you or contact you.

Let a Maryland Bankruptcy Attorney Help You File at the Right Time

At Bankruptcy Near Me, we help clients throughout Prince George’s County, Montgomery County, Howard County, and beyond file at exactly the right time—to protect income, stop garnishments, and eliminate debt.

Filing without the right timing can result in lost wages or lost assets. Let us help you avoid that.

📍 Maryland Office (Kensington, MD)
📞 Call: 301-550-5408
📧 🌐 www.bankruptcynearme.org/mdcontact

Iris Kwon https://www.bankruptcynearme.org
Next

When Should You File for Bankruptcy? Why Timing Is Everything