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Filing Bankruptcy in Maryland

When filing for a Chapter 7 Bankruptcy, Maryland law protects all or a portion of a person’s property from being seized by creditors or the bankruptcy trustee. Generally, when filing for a Chapter 13 bankruptcy, a person is allowed to keep all of their assets and property. However, there are certain exemptions that apply.

Importance of an Attorney for Bankruptcy

It’s important to consult with an attorney regarding which of your assets are protected in a bankruptcy filed in Maryland, but some of these exemptions that may apply include: Real Estate of which $5,000 of property is protected, automobiles, cash and property that includes home furnishings, other household items like appliances, clothing, books, tools and pets.  Automobiles have no exemptions in the state of Maryland. Property including home furnishings, other household items and pets are not to exceed a value of $1,000. Cash property amounts shall not exceed $6,000.

Chapter 7 Bankruptcy Maryland vs. Chapter 13

When filing for a Chapter 7 or Chapter 13 in Maryland, there are filing laws that apply. If you file a bankruptcy in the state in which you lived for 2 years, then the laws of that state apply in your bankruptcy petition. However, if you have not lived in the state for 2 years in which you are filing for a bankruptcy, the laws of the state that you resided in for a 180 day period preceding the 2 year period will apply.

Federal Exemptions for Bankruptcy

If the rules mentioned will deem you to be ineligible for exemptions under any state’s laws, you will be allowed to use federal exemptions that can be applied to your bankruptcy.

Maryland is Not Community Property – Hence Spouses May File Separately

Maryland is not a community property state. Community property states are states that recognize property that was acquired during a marriage, is owned jointly by both spouses and those that have not been acquired during the marriage is owned separately. Because Maryland is not a community property state, you can only acquire a spouse’s debt if you volunteered to take on a debt by being a co-signer for your spouse. Perhaps, you co-signed for a loan or an automobile. However, if a spouse files for bankruptcy, they will be able to rid most of their debts without involving their spouse.  If these debts are not unsecured, then the spouse filing for bankruptcy will not be able to file for bankruptcy without involving their spouse.

Consult With an Experienced Bankruptcy Lawyer Now to Avoid Problems both Now and Later

Knowing the bankruptcy laws in the state of Maryland is important. Consult with your attorney for more guidance and information regarding your specific exemptions related to filing a Chapter 7 and Chapter 13 bankruptcy in the state of Maryland. You may fill out the form to the right in order to obtain a free, no obligation consultation with a lawyer in your city in Maryland so that you can determine your best options forward in your situation.


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