How to Self-File Bankruptcy in Maryland
Most people who file for bankruptcy opt to use the services of an experienced bankruptcy attorney. Because bankruptcy is such a complicated process, those people have made a good decision. Not all debtors feel the need to employ an attorney, however. Some debtors have had good experiences filing as pro se debtors. Maryland debtors who feel they have competence to successfully file for bankruptcy should take these steps.
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Instructions
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1
Attend credit counseling. Before you can successfully file your bankruptcy petition, you must have attended credit counseling with a government-approved agency within the previous 180 days. File your certificate of credit counseling with the bankruptcy court.
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2
Take the means test. To file for Chapter 7 bankruptcy, you must first pass a qualifying test. Compare your family income to the median family income for a family of the same size in Maryland.
As of 2010, Maryland's median family incomes were listed as $55,041 for a single earner; $72,801 for a family of two; $85,151 for a family of three; and $101,441 for a family of four. Add $7,500 for each family member in excess of four.
If your family income is less than the state median, you can file for Chapter 7 bankruptcy. Skip to Step 4.
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3
Calculate monthly disposable income. Deduct allowed monthly expenses from monthly income. If your monthly disposable income is less than $100, you can file for Chapter 7 bankruptcy. If your monthly disposable income is more than $100, but that amount would not pay at least 25 percent of your debts if paid monthly over the next 60 months, you can file for Chapter 7 bankruptcy.
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4
File a petition and schedules. File your Chapter 7 petition with the required $299 in fees in the bankruptcy court serving your district. You also need to file schedules listing your income and expenses, property and debts, executory contracts and unexpired leases and a statement of financial affairs.
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5
Claim exemptions. After you have filed your petition, a bankruptcy trustee will be appointed to your case. The trustee has the task of separating your exempt and nonexempt property. She will sell all nonexempt property and use the proceeds to pay your creditors. Exempt property cannot be sold.
Maryland allows you to exempt the following property: tenancies by the entirety up to an unlimited amount; burial plot; perpetual care trust funds; prepaid college trust funds; clothing, household goods, furnishings, appliances, books, and pets up to $1,000 total; health aid; cash or property up to $6,000 if claimed within 30 days of attachment or levy; lost future earnings recoveries; any other property up to $5,000; wages; pensions; public benefits; tools of your trade up to $5,000; insurance; and child support and alimony. Refer to Maryland state laws for a complete list of exemptions.
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Tips & Warnings
Double-check your calculations.
Mistakes can cause your case to be dismissed.
References
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