Maryland Bankruptcy Law

Bankruptcy Courts in Maryland

If you live in Maryland and are considering bankruptcy, your case will be handled in federal bankruptcy court. Maryland has one bankruptcy court district with two divisions: Baltimore and Greenbelt. You’ll file your case in the division that covers the county where you live or where your main property or business is located.

All Maryland bankruptcy cases follow federal bankruptcy law, but the courts also have local rules and procedures that supplement those laws. Decisions are guided by the U.S. Court of Appeals for the Fourth Circuit, which also covers Virginia, West Virginia, North Carolina, and South Carolina. Because each division applies its own local practices, it’s best to work with an experienced bankruptcy attorney who can ensure your case is filed correctly and that all available protections are used.

Bankruptcy Filing Trends in Maryland

Maryland records several thousand consumer bankruptcy filings each year. Chapter 7 cases remain the most common, followed by Chapter 13 repayment plans used by homeowners and wage earners to protect their property while catching up on payments.

The Baltimore Division consistently reports the highest volume of filings, while the Greenbelt Division handles a steady number from the Washington, D.C. suburbs and southern counties. These filings reflect how many Maryland residents each year use bankruptcy to stop creditor actions, prevent foreclosure, and regain financial stability.

Maryland Exemptions — What You Can Keep

Filing for bankruptcy doesn’t mean losing everything you own. Maryland law protects certain property called exempt property, which includes items you need to live and work. Exempt property is protected by law and cannot be taken or sold to pay creditors.

Maryland does not allow the use of federal exemptions, meaning debtors must use exemptions provided by state law. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own.

Below are examples of the most common exemptions available to Maryland residents:

Because exemption limits and eligibility depend on property ownership and debt type, a bankruptcy attorney can help ensure all available protections are applied correctly.

Steps and Local Requirements

Credit counseling. Before filing, you must take a credit counselling course from an approved provider. A second debtor education course is required before discharge.

Means test. To qualify for Chapter 7, your household income must be below Maryland’s median or pass a means-test calculation comparing income and expenses.

Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You can request to pay in installments or apply for a waiver if you can’t pay in full.

Meeting of creditors. About a month after filing, you’ll attend a short “341 meeting.” It’s not held before a judge. A bankruptcy trustee will confirm your identity and review your paperwork.
In Maryland, meetings are typically held virtually or in person in Baltimore or Greenbelt, depending on where your case was filed.

Local rules and forms. The court’s website lists all current local rules and forms. Following them carefully helps your case move forward without delay.

What This Means for You

Filing for bankruptcy in Maryland can provide a fresh financial start and immediate relief from creditor pressure. The automatic stay stops lawsuits, garnishments, foreclosures, and repossessions.

Most filers keep their homes, vehicles, and retirement savings. Because bankruptcy involves complex eligibility rules, strict deadlines, local procedures, and specific property protections under Maine law, it’s best to consult an experienced bankruptcy attorney before filing.

An attorney can help you:

• Determine whether Chapter 7 or Chapter 13 is best for your situation
• Protect your property using Maryland’s exemption laws
• Complete required credit-counseling steps
• File all forms correctly and meet local deadlines

With proper preparation and legal guidance, bankruptcy can help you eliminate unmanageable debt and begin rebuilding your financial future.

U.S. Bankruptcy Court – District of Maryland (Baltimore Division)

Federal Circuit: Fourth Circuit Court of Appeals
Court Location: Baltimore

Where You File Depends on Where You Live

The Baltimore Division serves residents of northern and eastern Maryland, including the city of Baltimore and nearby counties. All bankruptcy cases for this region are filed and administered through the Garmatz U.S. Courthouse in downtown Baltimore.

Counties Served

• Allegany County
• Anne Arundel County
• Baltimore County
• Baltimore City
• Calvert County
• Caroline County
• Cecil County
• Dorchester County
• Garrett County
• Harford County
• Kent County
• Queen Anne’s County
• Somerset County
• Talbot County
• Washington County
• Wicomico County
• Worcester County

If you’re unsure whether your county falls within the Baltimore Division, a bankruptcy attorney can confirm where to file and ensure your case complies with local rules and deadlines.

Recent Filing Statistics

The Baltimore Division consistently handles the majority of Maryland’s consumer bankruptcy filings. Most are Chapter 7 cases, allowing individuals to erase unsecured debts such as credit cards and medical bills. Chapter 13 repayment plans are also common among homeowners and wage earners seeking to avoid foreclosure or repossession.

U.S. Bankruptcy Court – District of Maryland (Greenbelt Division)

Federal Circuit: Fourth Circuit Court of Appeals
Court Location: Greenbelt

Where You File Depends on Where You Live

The Greenbelt Division serves residents of southern and western Maryland, including the Washington, D.C. metropolitan area. All bankruptcy cases for this region are filed and administered through the U.S. Courthouse in Greenbelt.

Counties Served

• Charles County
• Frederick County
• Howard County
• Montgomery County
• Prince George’s County
• St. Mary’s County

If you’re unsure which division covers your county, a bankruptcy attorney can confirm where to file and help ensure your case meets all local requirements.

Recent Filing Statistics

The Greenbelt Division processes several thousand consumer bankruptcy filings annually. Chapter 7 remains the most common type of case, followed by Chapter 13 repayment plans used by individuals with regular income who want to protect their homes or vehicles.