General Bankruptcy Articles
Bankruptcy laws help people who can no longer pay their creditors get a fresh start – by liquidating assets to pay their debts or by creating a repayment plan.
Chapter 13 Bankruptcy is a federal court process designed to reorganize and repay your debts.
Chapter 7 Bankruptcy is a federal court process designed to eliminate most of your debts. The court will appoint a trustee, who will arrange to liquidate all of your assets, with the exception of certain "exempt" assets.
Special debts like child support, alimony and student loans, will not be eliminated when filing for bankruptcy.
Can a Judge ever turn down a bankruptcy petition? Who notifies the creditors and bill collectors? Can I use bankruptcy to stop foreclosure on my home or to stop other actions by creditors?
In Maryland, you can keep certain property, even if you file for bankruptcy. This property is called "exempt".
Depending on where you live (or have assets), you may file in Greenbelt or Baltimore. You must show that you live in Maryland or you had a business or most of your assets in Maryland.
For personal debts, most people file for Chapter 7 bankruptcy. A Chapter 7 bankruptcy is quicker and simpler than a Chapter 13 bankruptcy.