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Find answers to your Maryland bankruptcy law questions below. Or you can return to the Bankruptcy Page.
Not without a judgment. If you have gotten court papers, had a trial date and a judgment has been entered against you, then the creditor can take (garnish) your bank account or part of your paycheck. Maryland Rules 3–645 & 3–646.
Twenty–five percent (25%) of your paycheck each pay period can be garnished. Commercial Law Code 15–601.1
If you do not have an attorney, they have to stop when your bankruptcy case is filed.
If you do have an attorney, they have to stop when they get the bankruptcy attorney's name and address. But if the attorney does not respond to them, they can contact you again. FDCPA 1692c(a)(2).
Before filing for bankruptcy, you must take a credit counseling class from an approved credit counseling agency. A list of approved credit counseling agencies can be found at Credit Counseling Agencies in Maryland. After your bankruptcy is filed, you have to take a "Financial Management Course". This can be taken from the same agency.
It depends what chapter bankruptcy you filed before and what chapter you want to file now.
If you filed a Chapter 7 before, and you want to file a Chapter 7 again, you can file after eight years. The time starts on the filing date of the last bankruptcy. 11 USC 727(a)(8). For example, if you filed bankruptcy January 1, 2002 and your bankruptcy is discharged March 1, 2002, you can file again January 1, 2010.
If you filed a Chapter 7 before and you want to file a Chapter 13 now, your Chapter 13 discharge date has to be at least 4 years after the filing date of your Chapter 7. 11 USC 1328 (f)(1).
If you filed Chapter 13 before and want to file a Chapter 7 now, it is more complicated. Generally you have to wait six years. 11 USC 727(a)(9)
If you filed a Chapter 13 before and want to file a Chapter 13 again, you have to wait two years. 11 USC 1328 (f)(2)
If you are thinking about filing for bankruptcy, your credit is probably already bad. Filing for bankruptcy gets rid of the credit card debt and medical bills that you cannot pay. You will be able to establish credit again, well before eight or ten years because creditors know that you cannot file a chapter 7 bankruptcy again for eight years. But you have to be careful, because if you get in over your head again, your creditors can garnish your pay until you can file bankruptcy again.
A Chapter 7 bankruptcy is what most people think of when they talk about bankruptcy. It gets rid of (the legal term is "discharges") all of your credit card debt, unsecured personal loans, and medical bills. It does not discharge student loans, taxes or secured debt (mortgages, car loans).
Yes. Filing bankruptcy is a complicated process. First it requires a legal analysis of whether or not you qualify to file for bankruptcy and, if so, which chapter (Chapter 7 or Chapter 13) to file. In order to file your petition, you need alot of information and the supporting documents. There are deadlines to meet. If you have court cases against you, you have to file motions in those courts and notify the other parties. There may be legal paperwork to do in order to keep your house or your car. In short, you do not want to file bankruptcy without an attorney.
You have to meet income requirements to file a Chapter 7 bankruptcy. It is a two part test. First, you have to make under the median income in the State of Maryland for your household size. Second, you have to have less than $168 left over each month after you pay your living expenses. Living expenses include your mortgage payment or rent, BGE, water bill, phone bill, cable, cell phone, food etc. It does not include credit card payments.
You do not have to have a minimum amount of debt to file a Chapter 7 Bankruptcy.
You can usually keep a house that has a mortgage against it as long as you keep up with the mortgage payments and do not have very much equity in the house. If you have too much equity in the house (more than $5,000 for a single person and more than $10,000 for a couple) you need to talk to an attorney about your options.
You can also keep your car if it has a lien against it as long as you keep up with the payments and sign a "reaffirmaton agreement" with the loan company. If you own your car outright, as long as its resale value is not too high, you will be able to keep it, too. Again, if you own a car that has a resale value of more than $5,000 for a single person and more than $10,000 for a couple, you need to talk to an attorney about your options.
Briefly — for about 15 days. It is not a permanent solution. You have to be able to keep making payments on your house in order to keep it. If you don't have money for a lawyer and your house is going to foreclosure, there are attorney at the Maryland Pro Bono Foreclosure Prevention Project who can help.
Return to topA Chapter 13 Personal Bankruptcy allows you to repay all or part of your debts over either three or five years. Any debt that is not paid at the end of that time is gone (the legal term is "discharged").
In order to file a Chapter 13 Bankruptcy, you must have regular income that is enough to pay back at least twenty percent (20%) of your unsecured debt over the course of a three to five year plan. Some people have to pay back more, depending on their circumstances. This means you have to have several hundred dollars left each month after you pay your living expenses. Living expenses include your mortgage payment or rent, BGE, water bill, phone bill, cable, cell phone, internet, food, medical co-pays, car payments, insurance, gas for your car, etc. It does not include credit card payments.
One of the biggest benefits of filing a Chapter 13 Bankruptcy is that you get to keep your house and your car, even if you have significant equity (value) in them.
Return to topIf you are planning on closing your business because it is not making any money and cannot pay its debts, then you may be able to file a Chapter 7 business bankruptcy.
If you signed to personally to guarantee your business debts, the business' creditors can collect from you personally. Depending on your situation, you may need to file a personal bankruptcy, also.
A Chapter 11 business bankruptcy is a repayment plan for the business' debt.
If your business is making some money and will likely be making more money over the next several years, then your business may be able to file a Chapter 11 business bankruptcy.
Disclaimer: This site provides general legal information. It is not legal advice. You must contact an attorney for legal advice for your specific situation.
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