Maryland Chapter 7 Bankruptcy

People who are buried in debt can often find relief from bankruptcy laws. What you need to do is find the right bankruptcy law that is suited to your current situation. Bankruptcy case in Maryland is usually heard by federal courts and the most common filing is Maryland Chapter 7 Bankruptcy.

Maryland Chapter 7 Bankruptcy Laws, also known as the liquidation chapter, is a bankruptcy law wherein the court appoints a trustee who collects from the debtor non-exempt properties, and then sells it. The collected money is then distributed to the creditors. Any individuals, corporations or married couples can file for this chapter.


When an individual debtor files for Chapter 7, a filing fee of $245 will be charged by the court, a miscellaneous fee of $46, and $15 surcharge for the trustee. For those who can’t afford these fees, the court will allow debtors to pay in four installment basis of not more than 120 days, but it can be extended up to 180 days upon filing. The court can also waive the fees for individual debtors who can’t afford to pay these fees, if their income is less than 150 percent the poverty level. For joint petition, a one-time payment is done for filing, miscellaneous and surcharge for trustee. The court can dismiss the case if the debtors fail to pay these fees.


Once the debtors have finished their forms and paid the required fees, their creditors will be barred by the court from any attempts to collect from their remaining accounts. Next, a trustee will be appointed to acquire all their non-exempt properties and will sell them. Whatever he acquires will be the payment for the debts. Lastly, section 341meeting will be set by the court. The appointed trustee and the creditor will have the opportunity to examine them under oath and will confirm whatever information they have given in their schedules.

Chapter 7 will run for six months upon filing to final decree, and within ninety days of filing, discharge will be entered.  All their debts will be listed whether they pay it or not. Chapter 7 has no minimum or maximum amount for their debts but the Office of the U.S. Trustee will review their records for any fraud or abuse.

When the procedures have been settled, the court will wipe out most of their debts. By then, they could have a fresh start.  In case Chapter 7 is discharged, debtors cannot file for eight years but they can file for another chapter.


Student loans, child support, and personal tax liability are some of the debts that will survive your bankruptcy. Certain assets can be exempted such as furniture, clothing, cash, jewelry, and many more, if they have a two-year residency in Maryland before filing. If the debtors are single, they have a maximum of $12,000 exemptions but if married, a maximum of $24,000 exemptions is allowed. With the help of a lawyer, there are other exemptions that can be arranged upon his advice to maximize your exemption and to minimize the risk. For those who have less than two-year residency, some state or federal exemption can be applied.

Indeed, Maryland Chapter 7 Bankruptcy Laws can help most debtors overcome their financial crisis but before filing, knowledge of bankruptcy law is very important to protect their properties from being repossessed or foreclosed by their creditors.

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