Chapter 7 Bankruptcy in Maryland

A Fresh Start for Maryland Residents

If you’re struggling with debt and wondering how to get a fresh start, Chapter 7 bankruptcy can provide powerful relief. It’s a legal process designed to help honest individuals erase overwhelming debt and rebuild financially — often within just a few months.

At Bankruptcy Near Me, we guide Maryland residents through Chapter 7 bankruptcy every step of the way — with compassion, clarity, and affordable options, including low-bono (reduced-fee) assistance for those in need.

What Is Chapter 7 Bankruptcy?

Chapter 7, sometimes called “liquidation bankruptcy” or “straight bankruptcy,” is a process under federal law that allows individuals to wipe out many kinds of unsecured debt — such as credit cards, medical bills, payday loans, and personal loans.

Unlike Chapter 13, there is no repayment plan. Instead, a court-appointed trustee reviews your finances to determine if there are any non-exempt assets to sell for creditors. In most Maryland cases, clients keep all their property because it’s protected by state or federal exemptions.

Once your case is completed — usually in 3 to 4 months — most unsecured debts are discharged, meaning you are no longer legally required to pay them.

Who Qualifies for Chapter 7 in Maryland?

To qualify, your income must be low enough under the Maryland Means Test, which compares your household income to the state median.

Household Size Median Income Threshold for 2025

*1 person~$80,278

2 persons~$105,930

3 persons~$124,939

4 persons~$149,759

5 persons~$159,659

6 persons~$169,559

More than 6 Add ~$9,900 per additional person

*Figures updated periodically by the U.S. Trustee Program.

If your income is below the median, you generally qualify automatically. If it’s higher, we calculate your disposable income after necessary expenses — and many people still qualify after this step.

The Maryland Bankruptcy Process — Step by Step

1. Pre-Filing Credit Counseling
   Before filing, you must complete a credit counseling course from a U.S. Trustee–approved provider. It’s available online and usually costs less than $30.

2. Gather Financial Information
   You’ll collect pay stubs, tax returns, bank statements, a list of your debts, and documentation for any property you own. Our team helps you organize everything for accuracy.

3. File the Petition
   We file your case with the U.S. Bankruptcy Court for the District of Maryland, which automatically stops collections, lawsuits, wage garnishments, and harassing calls during your active Bankruptcy Case.

4. Debtor Education Course
   After filing, you’ll complete a brief personal finance course — required before discharge.

5. Attend the 341 Meeting (Meeting of Creditors)
   About a month later, you’ll meet with a bankruptcy trustee who reviews your documents. Creditors rarely attend. We’ll be there to represent and guide you.

6. Debt Discharge
   Roughly 60 days after your 341 meeting, the Court issues your discharge order. This permanently erases most unsecured debts and gives you the clean slate you’ve been working toward.

What Debts Can Be Erased?

Dischargeable Debts:

• Credit cards and medical bills

• Personal loans and payday advances

• Utility bills

• Most collection accounts

• Older repossessions or judgments

• Pay Later Installment Plans (Affirm, Klarna, AfterPay, Sezzle, etc.)

• Apartment eviction or surrender balances

• SBA Loans (with heightened review and scrutiny from the US Trustee and Chapter Trustee)

Non-Dischargeable Debts:

• Child support and alimony

• Most student loans unless you retain our firm to provide various strategies in having them reduced or eliminated

• Certain taxes and government fines

• Fraud-related debts or recent luxury purchases

• Borrowing against your 401k

• Claims arising out of injuring someone while intoxicated

Maryland Exemptions — Protecting What You Own

Maryland bankruptcy exemptions allow you to keep most, if not all, of your assets. You can choose between state or federal exemptions (but not both). These can protect your:

• Home equity

• Vehicle up to a certain value

• Retirement accounts

• Household goods and clothing

• Tools of the trade

• Personal possessions

Our firm carefully analyzes your exemptions to make sure you retain as much property as possible.

Maryland Bankruptcy Judges

The U.S. Bankruptcy Court for the District of Maryland is overseen by the following judges:

• Hon. Nancy V. Alquist

• Hon. Maria Ellena Chavez-Ruark

• Hon. Michelle M. Harner

• Hon. David E. Rice

• Hon. Lori S. Simpson

These judges preside over cases filed in the Baltimore and Greenbelt divisions of the Maryland Bankruptcy Court.

Maryland Bankruptcy Trustees

Each Chapter 7 case is assigned to a panel trustee, who reviews your paperwork, conducts your 341 meeting, and ensures your case complies with the Bankruptcy Code.

The District of Maryland’s Chapter 7 trustee panel includes experienced trustees such as:

Monique D. Almy

Marc H. Baer

Merrill Cohen

Morgan W. Fisher

Steven H. Greenfeld

Zvi Guttman

Patricia B. Jefferson

Craig B. Leavers

Janet M. Nesse

Cheryl E. Rose

Gary A. Rosen

Roger Schlossberg

Where Maryland Bankruptcy Cases Are Filed

Maryland has two bankruptcy courthouses, depending on where you live:

Baltimore Division

Garmatz Federal Courthouse
101 W. Lombard Street, Suite 8530
Baltimore, MD 21201
Phone: (410) 962-2688

Greenbelt Division

U.S. Courthouse, Suite 300
6500 Cherrywood Lane
Greenbelt, MD 20770
Phone: (301) 344-8018

If you’re unsure which division to file in, we’ll determine it for you based on your county of residence.

Costs, Fees, and Low-Bono Assistance

The Chapter 7 filing fee is currently $338, and credit counseling courses cost around $30–50. Attorney fees vary by complexity.

At Bankruptcy Near Me, we’re proud to provide low-bono (reduced-fee) representation to qualifying Maryland residents who cannot afford standard private legal fees.
Our low-bono services include:

• A reduced flat fee for Chapter 7 filings

• Flexible payment arrangements (including pre- and post-filing plans)

• Guidance through required credit counseling and debtor education

• Full representation through discharge

We believe everyone deserves a chance to start over — not just those who can afford it.

To learn if you qualify for low-bono assistance, call our Maryland office at 301-550-5408, or email info@bankruptcynearme.org.

Why Work With Bankruptcy Near Me?

• Local Expertise: We know Maryland’s trustees, judges, and court procedures inside and out.

• No-Asset Focus: We specialize in low-income, no-asset Chapter 7 cases — exactly what most Maryland filers need.

• Flat-Fee Transparency: No surprise hourly billing or hidden costs.

• Human Approach: We understand the stress that debt brings and handle every case with dignity and respect.

Our Maryland office, led by Attorney Iris Kwon, has successfully guided hundreds of families through Chapter 7. Whether you’re in Baltimore, Greenbelt, Montgomery, or Prince George’s County, we’re here to help you move forward.

Frequently Asked Questions

How long does a Chapter 7 take in Maryland?
Most cases take 3–4 months from filing to discharge.

Will I lose my home or car?
In most cases, no — exemptions protect these assets if you’re current on payments.

Can I file Chapter 7 again?
Yes, but you must wait 8 years from your previous Chapter 7 filing. If you need to file sooner, you may be eligible for a Chapter 13 discharge and could pay only cents on the dollar of what you fully owe.

What if I don’t qualify?
You may still be eligible for Chapter 13 bankruptcy, which reorganizes debt through an affordable repayment plan.

Start Fresh Today

If debt has become unmanageable, you’re not alone — and you’re not without options. Chapter 7 bankruptcy can stop collections, erase debt, and help you rebuild your financial life.

Contact Bankruptcy Near Me today to schedule a free consultation.
📞 Maryland: 301-550-5408
📧 info@bankruptcynearme.org
🌐 www.bankruptcynearme.org

Let us help you find peace, stability, and a true financial fresh start.