Maryland Bankrutpcy Laws
Maryland has one bankruptcy court that serves the entire state: the Maryland Bankruptcy Court. Maryland bankruptcy provides troubled debtors with a fresh start because bankruptcy protects consumers against lawsuit from creditors. Most people in Maryland file under chapter 7 or chapter 13. Chap 11 BK is normally only used by businesses and a few individual debtors with very large debts. It's too complicated and expensive for it to be worthwhile to the typical debtor.
Maryland Bankruptcy Exemptions
According to the Lawyers.com website, under Maryland bankruptcy law, you are allowed to keep:
- Household furnishings, household goods, wearing apparel, appliances, books and pets to $1,000
- Burial plots and crypts
- Health aids
- Lost future earnings recoveries
- Disability or health benefits
- Life insurance or annuity contract proceeds
- Medical benefits deducted from wages
- ERISA-qualified benefits, except IRAs
- Public benefits
- Property of business partnership
- Wearing apparel, books, tools, instruments or appliances necessary for trade or profession to $5,000
- 75% of disposable wages
- Cash or any property to $6,000
- Aggregate interest in real or personal property to $5,000
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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