Content Reviewed by:
Dave Gormley •
February.19.2025
Vertified Content
Feb 19, 2025
| Read Time: 5 minutes
However, bankruptcy law is complex, and missteps can lead to delays or even case dismissal. At Southern Maryland Law, we have been helping individuals throughout Maryland regain control of their finances for over 40 years.
Our team understands that bankruptcy is not just about clearing debt—it’s about securing a stable future. We take a compassionate, hands-on approach, guiding clients through every step of the process and ensuring they maximize available exemptions to protect what matters most.
If you are considering bankruptcy, this step-by-step guide explains how to file Chapter 7 in Maryland, what to expect, and how our experienced bankruptcy lawyers can help you navigate this challenging time.
Article Contents
How to File Chapter 7 Bankruptcy in Maryland
Filing for bankruptcy involves several legal steps. Below is a detailed overview of each phase, ensuring you understand what to expect throughout the process.
1. Complete a Credit Counseling Course
Federal law requires all bankruptcy filers to take a credit counseling course before submitting a petition. This one-time session must be completed through a U.S. Trustee-approved provider within 180 days before filing.
The course reviews your finances, explores potential non-bankruptcy alternatives, and explains the implications of filing. It takes 60 to 90 minutes and is available online, over the phone, or in person. Upon completion, a certificate of completion is issued, which must be included with your bankruptcy petition.
Failure to complete this requirement will result in automatic case dismissal. Completing this course is a necessary step before moving forward.
We will provide you the list of approved court counselors and we can recommend a few that other clients have liked. We can walk you through this step.
2. Gather Financial Documentation
There is a lot we need to know about your debts, income, expenses, etc.
Therefore, you will have to do some homework before you actually file for bankruptcy in Maryland. But please note you do NOT need these documents for your consultation. We can sketch out your options for you without any need for documentation. But when it comes time to file, you do need these documents.
Bankruptcy requires full financial disclosure. Before filing, prepare key documents that provide an accurate picture of your finances.
The documents needed for Chapter 7 filing include:
- Income records—pay stubs, W-2s, tax returns for the past two years, and earnings statements;
- Debt records—credit card statements, medical bills, personal loan records, and collection notices;
- Bank statements—recent checking, savings, and investment account statements;
- Asset documentation—home mortgage details, car titles, retirement accounts, and business ownership records; and
- Household expenses—utility bills, rent or mortgage payments, insurance costs, and childcare expenses.
Having organized financial records facilitates a smoother process and prevents delays. Working with a Maryland bankruptcy lawyer helps ensure everything is filed correctly.
3. File the Bankruptcy Petition
Once you gather the required paperwork, the official bankruptcy petition must be submitted to the U.S. Bankruptcy Court for the District of Maryland. This legal filing consists of multiple forms detailing:
- Assets and liabilities—a list of everything you own and everything you owe;
- Income and monthly expenses—a breakdown of earnings and essential costs;
- Debts and creditors—a full list of outstanding obligations; and
- Property exemptions—assets that qualify for protection under Maryland law.
The current Chapter 7 filing fee is $338, and if paying the full amount isn’t feasible, a fee waiver or installment plan may be requested.
If you file a Chapter 13 bankruptcy, a repayment plan will be filed along with the Petition. Your attorney will create the plan, but in general, the plan will look at your net monthly income, subtract reasonable expenses (which are governed by the new bankruptcy statute) and see if there is income left over. If there is, that amount will go to pay your creditors. If you are filing a Chapter 13 to protect an asset you can’t protect in a Chapter 7, you need to pay back what the creditors would get in the Chapter 7.
After filing, an automatic stay immediately halts all collection efforts, including:
- Wage garnishments,
- Lawsuits filed by creditors,
- Foreclosure proceedings, and
- Collection calls or letters.
This legal protection remains in place throughout the bankruptcy case, giving filers relief from creditor harassment. A bankruptcy lawyer can help ensure you file your petition properly.
4. Attend the 341 Meeting of Creditors
Roughly three to six weeks after filing, filers must attend the 341 meeting of creditors, overseen by the bankruptcy trustee.
At the meeting:
- The trustee verifies your identity using a government-issued ID and Social Security number;
- You answer questions about your finances, debts, and property;
- Creditors—though they rarely attend—may ask questions; and
- The trustee reviews your case to determine whether assets must be liquidated.
This meeting is not a courtroom hearing and does not involve a judge. It typically is done over zoom and lasts 10 to 15 minutes and is one of the easiest steps in the process.
To ensure a successful outcome, all financial details must be accurate and complete before this meeting.
You will have to appear at the meeting and the Trustee will interview you. Your attorney will be present for this meeting. Your creditors are allowed to appear and ask questions, but they do not usually show up. For more details on what happens at a 341 meeting, click here.
5. Complete the Debtor Education Course
After the 341 meeting of creditors, but before debts are discharged, you must complete a second financial education course called the Debtor Education Course. The purpose of the course is to:
- Cover budgeting, money management, and credit rebuilding;
- Help filers avoid future financial difficulties; and
- Provide strategies for long-term financial health.
A certificate of completion is required. Failing to submit this document prevents the final discharge.
6. Receive a Chapter 7 Bankruptcy Discharge
Once all requirements are met, the bankruptcy court issues a discharge order, typically 60 to 90 days after the 341 meeting of creditors.
After discharge, most unsecured debts are eliminated, including credit card balances, medical bills, payday loans, and unpaid utilities. Creditors can no longer attempt to collect discharged debts.
After discharge, only certain obligations remain, such as:
- Student loans (unless extreme hardship is proven),
- Child support and alimony,
- Court-ordered fines, and
- Certain tax debts.
A discharge officially closes the case, allowing individuals to move forward financially. A bankruptcy discharge marks the end of your legal obligations for discharged debts, allowing you to rebuild credit, regain financial stability, and move forward without overwhelming debt. While Chapter 7 remains on your credit report for up to 10 years, many filers begin seeing improvements in their credit score within months by making responsible financial choices.
How a Maryland Bankruptcy Lawyer Can Help
Bankruptcy law is complex. Before the Bankruptcy Reform Act of 2005, if you had no assets whatsoever you could file your own Chapter 7 case. That is no longer advisable. The 2005 law made bankruptcy a complex process far more involved than just filling out forms. Theoretically, you can still do it yourself, but you will have to be very, very diligent. We do not advise it.
Having an experienced bankruptcy attorney helps ensure:
- Accurate completion of all paperwork,
- Protection of valuable assets using Maryland exemptions,
- Legal representation during the 341 meeting, and
- Guidance through each phase of the case.
At Southern Maryland Law, we simplify the process, protect your rights, and help you achieve financial freedom.
Take the First Step Toward Debt Relief
If financial struggles are weighing you down, filing Chapter 7 in Maryland may provide the relief you need. However, navigating the legal process alone can be overwhelming—that’s where we come in. At Southern Maryland Law, we don’t just file paperwork; we help protect your assets and guide you through legal complexities, so you can move forward with confidence. Our firm has been serving Maryland residents for over four decades, providing trusted legal representation with a local, client-focused approach. We know the local courts, judges, and bankruptcy trustees—giving you the advantage of experience and insider knowledge. You don’t have to face this process alone. Contact Southern Maryland Law today for a confidential consultation, and let us help you take the first step toward financial freedom.
