Filing Bankruptcy In Dorchester County, MD

We're here to help you navigate these layers of federal, state, and local rules that come into play when you file bankruptcy in Dorchester County, MD.

LegalConsumer.com's "Bankruptcy By Zip Code" website has provided free, local bankruptcy information to more than 10 million consumers since 2006! Let us help you learn how bankruptcy works in Dorchester County, MD. 

How to File 

• Chapter 7: How does Chapter 7 bankruptcy work in Maryland?
• Chapter 13: How does Chapter 13 bankruptcy work in Dorchester County, MD?

Means Test

• Free Means Test Calculator: Are you eligible for Chapter 7? This calculator will help you find out. Online since 2006. Updated with April 2024 income & expense standards. 
• Local Standards:  Maryland and Dorchester County: Every state and county differs.
  • Maryland Median Income: Each state has its own Median Income standard.
  • Expense Standards For Dorchester County: Housing expense standards are by county and vary widely in Maryland. Be sure you have selected the correct county to get an accurate result in the Bankruptcy Means Test.
• Line by Line Help:  Just the bits you need when needed. 

Bankruptcy Court

• Which court do I use?  Bankruptcy is a federal law, so you use a "Federal District Bankruptcy Court," which differs from the Federal District Court. They're two different things.
  
• Where do I file for bankruptcy?
  
• Can I file Electronically? A few courts are now allowing debtors to file electronically. Also, services like Upsolve.org can help.
• Court Info For Non-Attorneys: Every court offers guidance for debtors who don't have an attorney. Some courts more than others.
• Who is the Trustee? Learn about the court person you'll deal with if you file. It won't be the judge.

• Forms & Instructions

  • Downloads: Where can I download free bankruptcy forms for my court?
  • Which Forms? You don't need them all. We'll tell you which ones you need.

Maryland Bankruptcy Exemptions

• Schedule C:  The form where you claim your property as exempt.
• Federal Bankruptcy (§522) Exemptions: 19 states allow you to use the Federal Bankruptcy Exemptions listed in 11 USC § 522. The remaining states have "opted out" and only allow you to use the state law exemptions. 
  • Can use the Federal Bankruptcy (§522) exemptions in Maryland? 

    No. Md. Code Ann., Cts. & Jud. Proc. § 11-504

• Maryland Exemptions
  • Federal Non-Bankruptcy Exemptions:
• Real Estate
  • Your Home (Maryland Homestead Exemption): 

    • Owner occupied residential property or condo or co-op to $25,150 (husband and wife may not double)
      Property held as tenancy by the entirety is exempt against debts owed by only one spouse

• Personal Property:
  • Car/Truck/Van: Most states explicitly exempt motor vehicles. In some states, it's pretty generous. 

    • none (see Wild Card)

  • Tools of Your Trade: From delivery vans to shop tools, most states allow you to exempt tools you use for your work, up to a certain amount.
  • Wildcard

    • $6,000 of cash or any property; must claim exemption within 30 days of levy or attachment.

• Financial Accounts & Cash
  • Retirement Accounts & Pensions: You can protect over $1M in retirement accounts if you file for bankruptcy. 
  • Public Benefits: States differ as to what benefits you can 
  • Bank Accounts: 

Types of Debt

• Secured Debts: Bankruptcy doesn't get rid of secured debts, but in some cases, it can greatly reduce them. When you file, you'll be asked what you plan to do about your secured debts. Your options are:  -
  • Surrender: Give back the property and wipe out any remaining deficiency balance in bankruptcy. 
  • Redeem: - Come up with the cash to buy the property outright at its current value.. 
  • Reaffirm: - Keep the arrangement you have, and leave this debt unaffected by your bankruptcy.
  • Common Types of Secured Debts:
    • Mortgages
    • Car Loans
    • Judgement Liens:
      • How do you "void" them on exempt property?
• Unsecured Debts: Most unsecured debts, like credit cards and medical debts, can be discharged in bankruptcy.
  • Credit Card Debt
  • Medical Debt
  • Personal Loans
  • Payday loans
• Unsecured Debts that require extra steps:
  • Student Loans: Extra steps required to get rid of it
    • Undue Hardship: What do you have to prove to get a discharge?
    • Adversary Proceeding: Like a mini-trial within your bankruptcy case. 

Lawyers Near Me

• How can I find a good local bankruptcy lawyer near me?
• What should I expect from a bankruptcy attorney?
• Legal Aid in Maryland:
  • The People's Law Library of Maryland 

Note: This website is updated as time permits. It is up to you to contact your local court and confirm and update any information you need. Information is not advice. See a bankruptcy lawyer for advice about how the law relates to your situation.