Chapter 7 vs. Chapter 13 Bankruptcy in Maryland: Which Is Right for You?

August 21, 2026

Key Takeaways

• LeViness, Tolzman & Hamilton was founded in Baltimore in 1987 and has guided clients through Chapter 7 and Chapter 13 filings ever since.
• The firm offers a free initial consultation and explains its fee schedule up front.
• The firm’s Baltimore office is located at 400 E. Pratt Street, Suite 818, Baltimore, MD 21202, near the U.S. Bankruptcy Court for the District of Maryland.
• Court filing fees run $338 for Chapter 7 and $313 for Chapter 13, and attorney and trustee fees add to the total cost.

Debt does not discriminate. Households in Baltimore, Anne Arundel County, and across Maryland face rising credit card balances, medical bills, and foreclosure threats every year. When a client asks which bankruptcy fits their situation, the Maryland bankruptcy lawyers at LeViness, Tolzman & Hamilton review income, assets, and goals first. Chapter 7 and Chapter 13 each offer a different route to debt relief, and the choice affects your home, car, and credit for years.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a liquidation case. A trustee sells property that Maryland exemptions do not protect and pays creditors from the proceeds. Most filers keep everything they own because exemptions cover a set amount of home equity, a vehicle, and household goods. A Baltimore Chapter 7 bankruptcy lawyer at our firm typically moves a case from filing to discharge in four to six months.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy sets up a repayment plan lasting three to five years instead of liquidating property. Maryland residents who earn too much for Chapter 7, or who want to keep a home or car while catching up on missed payments, often work with a Baltimore Chapter 13 bankruptcy lawyer to build a Chapter 13 repayment plan in Maryland that the court will approve.

How Does the Maryland Means Test Decide Eligibility?

The Maryland means test compares your household income against the Maryland median for your household size. Income at or below the median generally qualifies you for Chapter 7. Income above it requires subtracting allowed expenses to find disposable income; little disposable income may still support Chapter 7, whereas significant disposable income points toward Chapter 13. The U.S. Bankruptcy Court for the District of Maryland hears every Maryland filing.

Which Debts Does Each Chapter Discharge?

Chapter 7 discharges most unsecured debts, including credit card balances, medical bills, and personal loans, but not most student loans, recent tax debt, or support obligations. Chapter 13 discharges a similar category once payments are complete, and it lets you cure mortgage or car loan arrears over the plan.

Can You Keep Your Home and Car Under Each Chapter?

Under Chapter 7, you keep your home and car only if exemptions cover your equity and you stay current on payments. Under Chapter 13, the automatic stay stops foreclosure, and the plan lets you cure arrears over three to five years, making it the stronger option for a homeowner who wants to keep the house.

How Do You Choose Between Chapter 7 and Chapter 13?

The right choice depends on your income, assets, and goals. Maryland bankruptcy lawyers at the firm review pay stubs, tax returns, and your debts before recommending a chapter, since running your numbers against the means test beats a general rule.

Frequently Asked Questions

Which bankruptcy should I file, Chapter 7 or Chapter 13?

It depends on your income, your assets, and whether you want to keep property such as a home or car. A review with a bankruptcy attorney clarifies the right path.

Does Chapter 13 stop foreclosure in Maryland?

Yes. Filing a Chapter 13 case triggers an automatic stay that halts foreclosure and gives you time to cure mortgage arrears through the plan.

Maryland Bankruptcy Lawyers at LeViness, Tolzman & Hamilton Can Protect Your Future

Deciding between Chapter 7 and Chapter 13 affects your home, car, and financial future. The Maryland bankruptcy lawyers at LeViness, Tolzman & Hamilton will review your income, debts, and goals, then recommend the chapter that fits your household. For a free consultation, contact us online or call us today at 800-547-4LAW (4529). We have offices in Baltimore and Owings Mills, MD, and we serve clients in the surrounding areas.