Maryland Bankruptcy Guide 2026
This content is for informational purposes only and does not constitute legal advice. Consult a licensed Maryland attorney for advice specific to your situation.
Filing for bankruptcy in Maryland can help you get a fresh financial start. This guide covers everything you need to know about Chapter 7 and Chapter 13 bankruptcy in Maryland courts.
Quick Facts: Bankruptcy in Maryland
| Requirement | Details | |
|---|---|---|
| Residency | Must live in Maryland for at least 91 of the last 180 days | |
| Where to File | U.S. Bankruptcy Court, District of Maryland | |
| Filing Fee | Chapter 7: $338 | Chapter 13: $313 |
| Credit Counseling | Required within 180 days before filing | |
| Means Test | Required to qualify for Chapter 7 | |
| Exemptions | Maryland allows state exemptions |
Types of Bankruptcy in Maryland
Chapter 7 Bankruptcy
What it is: Chapter 7 is a "liquidation" bankruptcy that eliminates most unsecured debts in about 4-6 months.
Best for:
- People with little to no assets
- Those whose income is below the Maryland median
- People who want a fresh start quickly
What happens to
- A trustee may sell non-exempt assets to pay creditors
- Most unsecured debts are discharged (eliminated)
- You keep exempt property
Chapter 13 Bankruptcy
What it is: Chapter 13 is a "reorganization" bankruptcy that sets up a 3-5 year repayment plan.
Best for:
- People with regular income
- Those who want to keep their home or car
- People who don't qualify for Chapter 7
What happens to
- You keep all your property
- You make monthly payments to a trustee
- Remaining debts are discharged after completing the plan
Do You Qualify for Chapter 7 in Maryland?
The Means Test
To file Chapter 7 in Maryland, your income must be below the Maryland median income OR you must pass the "means test" calculation.
Maryland Median Income (2024):
| Household Size | Annual Income |
|---|---|
| 1 person | $69,914 |
| 2 people | $87,458 |
| 3 people | $106,252 |
| 4 people | $127,054 |
| Each additional | +$9,900 |
If your income is BELOW these numbers: You likely qualify for Chapter 7.
If your income is ABOVE these numbers: You must complete the means test calculation (Form 122A-2). If you have little to no disposable income after expenses, you may still qualify.
Who Cannot File Chapter 7
- Filed Chapter 7 in the last 8 years
- Filed Chapter 13 in the last 6 years
- Recent bankruptcy dismissal within 180 days
- Attempting to defraud creditors
What Property Can You Keep in Maryland?
Maryland allows you to use state exemptions (not federal exemptions). Under Maryland Code, Courts & Judicial Proceedings § 11-504:
Key Maryland Exemptions
| Property | Exemption Amount |
|---|---|
| Homestead | Up to $25,150 in real or personal property used as residence |
| Motor Vehicle | Up to $3,625 in one vehicle |
| Household Goods | Up to $12,625 total |
| Tools of Trade | Up to $5,625 in tools, books, instruments |
| Jewelry | Up to $1,700 |
| Wild Card | Up to $1,350 in any property |
| Retirement Accounts | 401(k), IRA, pensions (generally fully exempt) |
| Public Benefits | Social Security, unemployment, veterans benefits |
| Alimony/Child Support | Reasonably necessary for support |
The Filing Process: Step by Step
Step 1: Complete Credit Counseling
Before you can file, you must complete a credit counseling course.- Where:** Approved agencies listed at justice.gov/ust/eo/bapcpa/ccde
- Cost: $0-$50 (fee waivers available)
- Format: Online, phone, or in person
- Timing: Within 180 days BEFORE filing
Step 2: Gather Documents
Collect:
- Last 6 months of pay stubs
- Last 2 years of tax returns
- Bank statements for all accounts
- List of all debts (names, addresses, amounts)
- List of all assets
- Vehicle titles and registrations
- Mortgage statements
Step 3: Complete Bankruptcy Forms
Required forms:
- Voluntary Petition (Form B 101)
- Schedules A/B through J
- Statement of Financial Affairs (Form B 107)
- Means Test forms (B 122A-1, B 122A-2 if needed)
- Chapter 7 Statement of Intention (Form B 113)
Where to get forms:
- uscourts.gov/forms/bankruptcy-forms
- Bankruptcy Court Clerk's Office
Step 4: File Your Petition
Where to file:
- U.S. Bankruptcy Court, District of Maryland
- Baltimore: 101 W. Lombard Street, Suite 8500
- Greenbelt: 6500 Cherrywood Lane
Filing fee:
- Chapter 7: $338
- Chapter 13: $313
- Fee waiver applications available (Form B 103B)
What happens when you file:
- The automatic stay begins immediately
- Wage garnishments stop
- Foreclosure actions pause
- Collection calls must cease
Step 5: Attend the 341 Meeting (Meeting of Creditors)
When: 3-6 weeks after filing
What to bring:
- Photo ID
- Social Security card
- Bank statements
- Tax returns
- Proof of income
What happens:
- Trustee reviews your paperwork
- Asks questions about your finances
- Creditors may attend (rarely do do)
Step 6: Complete Financial Management Course
Required for discharge:
- Must complete AFTER filing
- Called "debtor education"
- File certificate with court
Step 7: Receive Your Discharge
When: 60-90 days after 341 meeting
What it means:
- Most unsecured debts eliminated
- Creditors cannot pursue you
- Fresh financial start
Bankruptcy Court Locations in Maryland
Baltimore Division
- Address: 101 W. Lombard Street, Suite 8500, Baltimore, MD 21201
- Phone: (410) 962-2688
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
Greenbelt Division
- Address: 6500 Cherrywood Lane, Greenbelt, MD 20770
- Phone: (301) 344-0190
- Hours: Monday-Friday, 8:30 AM - 4:30 PM
What Debts Are NOT Discharged?
Bankruptcy does NOT eliminate:
- Student loans (except in rare hardship cases)
- Recent taxes (last 3 years)
- Child support and alimony
- Debts from fraud
- Intentional injury debts
- Criminal fines and restitution
- Debts not listed in bankruptcy
Legal Aid Resources in Maryland
| Organization | Phone | Services |
|---|---|---|
| Maryland Legal Aid | (410) 539-5340 | Free bankruptcy help for low-income |
| Maryland Volunteer Lawyers Service | (410) 547-9000 | Pro bono bankruptcy representation |
| Maryland Bar Lawyer Referral | (410) 685-7878 | Low-cost consultations |
Next Steps
- Complete credit counseling — justice.gov/ust/eo/bapcpa/ccde
- Gather your documents — pay stubs, tax returns, debt list
- Consider your options — Chapter 7 vs. Chapter 13
- Consult an attorney — especially if you have significant assets
- File your petition — at the appropriate bankruptcy court
Get Maryland Bankruptcy Documents
jurisdiction-correct Maryland bankruptcy documents from Jurist-Diction include Chapter 7 and Chapter 13 templates — starting at $97.
Templates are for informational purposes only and do not constitute legal advice. For legal advice, contact a licensed Maryland attorney or Maryland Legal Aid at (410) 539-5340.