How to File for Chapter 13 Bankruptcy in Maryland

Filing for Chapter 13 bankruptcy in Maryland can be a complex process, but understanding the steps involved can make it easier. This form of bankruptcy, often referred to as a wage earner's plan, allows individuals to reorganize their debt and repay it over time, typically within three to five years.

1. Understand the Eligibility Requirements
Before filing for Chapter 13 bankruptcy, it's essential to ensure that you meet the eligibility criteria. In Maryland, your unsecured debts must be below $419,275, and your secured debts must not exceed $1,257,850. These limits are updated periodically, so always check the current figures. Additionally, you must have a regular source of income to qualify for a repayment plan.

2. Complete Required Credit Counseling
Prior to filing, debtors are required to complete a credit counseling course from an approved provider. This course helps you assess your financial situation and explore alternatives to bankruptcy. You’ll receive a certificate of completion, which you'll need to attach to your bankruptcy petition.

3. Gather Necessary Documentation
Collect all relevant financial documents that provide a clear picture of your financial situation. This includes:
- Pay stubs for the last six months
- Tax returns for the last two years
- Bank statements
- A list of all debts and creditors
- Any other financial records that may be required

4. Complete the Bankruptcy Forms
You must fill out the official bankruptcy forms, which include information about your income, expenses, assets, and debts. These forms can be filed electronically or on paper through the U.S. Bankruptcy Court for the District of Maryland. Accuracy is crucial, as any discrepancies can lead to delays or complications in your case.

5. File Your Petition with the Court
Once your forms are completed, you’ll file them with the bankruptcy court. There is a filing fee, which can sometimes be waived depending on your financial situation. Upon filing, an automatic stay goes into effect, preventing creditors from pursuing collection actions against you.

6. Create a Repayment Plan
As part of the Chapter 13 bankruptcy process, you’ll need to propose a repayment plan to the court. This plan outlines how you’ll repay your debts over the next three to five years. It’s crucial to provide a realistic budget and repayment strategy, as the court must approve your plan before it goes into effect.

7. Attend the Meeting of Creditors
After filing, you’ll be required to attend a meeting of creditors, also known as a § 341 meeting. This is a formal meeting where your creditors can ask questions regarding your financial situation. It’s usually held about a month after you file, and both you and your attorney should be present.

8. Confirmation Hearing
Following the meeting of creditors, a confirmation hearing will be scheduled. During this hearing, the bankruptcy judge will review your repayment plan. If everything is in order and meets legal requirements, the judge will confirm the plan, allowing you to commence repayment.

9. Complete Required Payments
Once your plan is confirmed, you must make regular payments according to the plan for the duration of its term. Staying on track with these payments is crucial for successfully completing your Chapter 13 bankruptcy.

10. Obtain a Discharge
Upon successfully completing your repayment plan, you’ll receive a discharge of your remaining eligible debts. This means you are no longer legally obligated to pay those debts, allowing you to start fresh financially. It's worth noting that certain debts, like most tax obligations and child support, typically cannot be discharged.

Filing for Chapter 13 bankruptcy in Maryland is a significant step toward gaining control over your financial future. While the process can be challenging, following these steps and consulting with a qualified bankruptcy attorney can help you navigate it successfully.