Chapter 13 Bankruptcy in Maryland

A Fresh Start That Lets You Pay (Without Losing What Matters)

If your income is stable but debt is overwhelming, Chapter 13 bankruptcy — also known as the “wage earner’s plan” — provides a structured method to repay creditors over time while keeping your property. In Maryland, Chapter 13 is especially valuable when you need to catch up on mortgages, car loans, or taxes without having to liquidate assets.

At Bankruptcy Near Me, we help Maryland residents navigate Chapter 13 from start to finish. We also offer low-bono (reduced-fee) representation for qualifying clients who need quality legal assistance on a limited budget.

What Is Chapter 13 Bankruptcy?

  • Under Chapter 13, you propose a repayment plan (usually 3 to 5 years) based on your income and allowable expenses.

  • Rather than giving up assets, you gradually repay debts. Secured debts like mortgages or car loans can be “cured” over time.

  • When you successfully complete the plan, the court discharges remaining eligible debts.

  • In certain cases of hardship or changed circumstances, a hardship discharge may allow exit early under limited conditions.

Who Qualifies for Chapter 13 in Maryland?

To file Chapter 13 in Maryland, you generally must:

  1. Have regular monthly income (wages, self-employment, pension, etc.).

  2. Owe less than the maximum statutory limits for secured and unsecured debt.

  3. Be a resident of Maryland (or have principal property in Maryland) or file in the correct venue (District of Maryland).

  4. Complete credit counseling before filing and debtor education before discharge.

The Chapter 13 Process in Maryland (Step by Step)

  1. Pre-filing Credit Counseling
    You must complete a credit counseling session from a U.S. Trustee–approved provider before you file.

  2. File Your Petition & Plan
    You file in the U.S. Bankruptcy Court for the District of Maryland, along with a proposed repayment plan and financial schedules.

  3. Automatic Stay Takes Effect
    Immediately upon filing, creditors must halt collection efforts, lawsuits, garnishments, and repossessions

  4. 341 Meeting of Creditors
    Roughly 4 to 6 weeks later, you attend a meeting with the Chapter 13 trustee, who reviews your documents and asks questions. Creditors may show, though they usually do not.

  5. Confirmation Hearing
    The bankruptcy court reviews your plan, hears objections (if any), and either approves (confirms) or orders modifications.

  6. Make Payments
    You make monthly payments through the trustee. These cover:

    • Priority debts (fresh taxes, child support) in full over time

    • Secured debt arrears (mortgage, car) over time

    • Unsecured debt to the extent your disposable income, or unprotected/unexempt assets, whichever are higher

  7. Completion & Discharge
    After finishing your plan, the court grants a discharge of remaining eligible debts. If circumstances prevent full repayment, you may seek a hardship discharge.

  8. Modification or Conversion
    If things change (job loss, medical issue), your plan can be modified, or sometimes converted to Chapter 7 if you become eligible.

Key Maryland Features & Strategy Tips

Plan Duration & Median Income Test

  • If your income is below the Maryland median, you may qualify for a 3-year plan.

  • For incomes above median, a 5-year plan is more common.

  • The plan must show you are paying as much as reasonably possible — i.e., your disposable income after necessary expenses.

Catching Up on Secured Debt

One of the biggest advantages of Chapter 13 is the ability to cure delinquent mortgage or car payments over your plan term, keeping your collateral secure.

Dealing with Objections & Changes

Creditors or the trustee may object or move to dismiss for missed payments. You can respond with explanations, propose modifications, or request relief based on changed circumstances.

Hardship Discharge

If you cannot complete the plan due to circumstances beyond your control, a hardship discharge under 11 U.S.C. § 1328(b) may be available. This discharges unsecured debt but does not relieve priority debts.

Maryland’s Bankruptcy Judges

The U.S. Bankruptcy Court for the District of Maryland is overseen by several judges, who decide matters ranging from plan confirmation to adversary proceedings. Current judges include:

  • Hon. Nancy V. Alquist

  • Hon. Thomas J. Catliota

  • Hon. Maria Ellena Chavez-Ruark

  • Hon. Michelle M. Harner

  • Hon. David E. Rice (Chief Judge)

  • Hon. Lori S. Simpson

These judges preside over Chapter 13 matters, including plan confirmations, objections, enforcement, and adversaries.

Maryland Chapter 13 Trustees

When you file a Chapter 13 case in Maryland, your case will be assigned to one of the standing trustees who administer repayment plans and enforce trustee oversight. The District of Maryland’s Chapter 13 trustees include:

  • Timothy P. Branigan

  • Brian Tucci

  • Rebecca Herr

These trustees manage plan payments, monitor compliance, and may file objections or modifications if needed.

Why Choose Chapter 13 Over Chapter 7?

  • Keep your home or car even if you're behind — you can catch up through the plan.

  • A Chapter 13 plan can discharge certain debts that Chapter 7 cannot.

  • The automatic stay remains in effect as long as you comply with your payments.

  • Flexibility to modify your plan if your circumstances change.

Low-Bono / Reduced-Fee Chapter 13 Representation

At Bankruptcy Near Me, we believe everyone deserves access to competent legal help, not just those with means. In Maryland, we offer low-bono (reduced-fee) Chapter 13 representation to qualifying clients.
Our services include:

  • Drafting your petition, plan, and required motions

  • Representation at the 341 meeting and confirmation hearing

  • Guidance in objections, modifications, or hardship discharge requests

  • Direct attorney communication — no passing you off to paralegals

Call our Maryland office at 301-550-5408 or email info@bankruptcynearme.org to see if you qualify.

FAQs (Frequently Asked Questions)

How long does a Chapter 13 take in Maryland?
Usually 3 to 5 years, depending on your plan and income level.

Can I convert to Chapter 7 if needed?
Yes — conversion is permitted under many circumstances if you become eligible.

What happens if I miss payments?
The trustee or creditor may move to dismiss your case, but courts often allow curative plans or modifications if you explain and correct.

Will I lose my property?
No — Chapter 13 lets you keep property as long as you meet the plan and catch up arrears on secured debts.

Can I file more than once?
Yes, subject to limitations under § 1328 and other legal requirements.