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Columbia Bankruptcy Lawyer

Key Takeaways

The means test compares your household income with the Maryland median to decide whether you qualify for Chapter 7.
Columbia residents file in the U.S. Bankruptcy Court for the District of Maryland, Baltimore Division, although filings can be made in Greenbelt.
Filing triggers an automatic stay that stops most lawsuits, foreclosures, wage garnishments, and creditor calls.
Maryland exemptions protect some of your property, and a discharge erases most unsecured debts, except child support, recent taxes, and most student loans.

Just because you are trapped under a mountain of debt does not mean that there is no hope for your financial future. You may consider availing yourself of the Chapter 7 bankruptcy process. At the conclusion of this process, your unsecured debts could be just discharged, but it comes with a trade-off. The Columbia bankruptcy lawyers at LeViness, Tolzman & Hamilton can advise you about whether you can seek protection from your creditors.

Do I Qualify for Chapter 7 Bankruptcy?

Bankruptcy laws try to balance the interests of debtors and creditors. At their core, they aim for a fundamental sense of fairness to both parties. The ability to have debts discharged is a powerful tool, but its application is limited. Accordingly, federal bankruptcy law applies the means test to eligibility for Chapter 7 filings. The means test looks at both your income and household size. The test then compares it with the median income in Maryland. The application is relatively straightforward. If your income is below the figure listed on the table, you can file for Chapter 7.

If your income is above the Maryland median, you complete a second calculation on Official Form 122A-2. This form subtracts allowed living expenses, secured debt payments, and priority debts from your income. If little money remains, you can still file Chapter 7.

Where Do I File for Bankruptcy?

Although bankruptcy is subject to individual state laws, the overarching legal framework is the federal bankruptcy statutes. As such, bankruptcy is a process that unfolds in federal court. When you file for bankruptcy in Columbia, your case will be heard in the United States Bankruptcy Court for the District of Maryland. You can file your actual case in either the District Court in Baltimore or in Greenbelt, Maryland.

What Happens After You File for Bankruptcy

The first thing that happens after you file for bankruptcy is that the automatic stay goes into effect. This is one of the most valuable protections that you have in the bankruptcy process. Your creditors can no longer take any action to collect the debt you owe them. They cannot send you collection letters, garnish your wages, or do anything else in furtherance of collection. If they violate the automatic stay, they can face serious legal consequences.

After you file for bankruptcy, the court will notify your creditors that you have filed, giving them the ability to participate in the process. Then, you would need to attend a Section 341 meeting, where you would answer questions under oath from the case trustee. Your creditors may attend this meeting, although their presence is not mandatory.

Since a creditor’s rights may be affected, they have the ability to object to your bankruptcy filing. The court would consider a creditor’s objection, and a judge would rule. The trustee could file their own objections with the court.

The Tradeoff for Filing for Bankruptcy in Maryland

The ability to have your debts discharged in the Chapter 7 process comes at a cost. The law only allows you to protect a certain amount of your own property from the bankruptcy process. The trustee is able to take certain property of yours and sell it and then use the proceeds to pay off your creditors. This can touch much of your personal property. You only get to keep property that is protected by an exemption. This includes the following:

Homestead: Maryland has recently opted out of federal homestead bankruptcy exemptions. For cases filed after June 1, 2026, filers may receive a homestead exemption of $150,000, and those over 60 have their exemption doubled to $300,000.
Wildcard: $6,000 in cash or any property, reduced by any amount claimed under the $500 bank account exemption
Bankruptcy-only personal property: an additional $5,000 under § 11-504(f)
Household goods: $1,000 in furniture, appliances, clothing, books, and pets
Tools of the trade: $5,000 in items needed for work
Bank account: $500, applied automatically
Motor vehicles: No specific exemption. Filers usually protect car equity with the wildcard.

What Is My Ideal Result After Bankruptcy?

The hope is that your unsecured debts will be discharged at the conclusion of the bankruptcy process. These debts that could be discharged include the following:

Credit card balances
Medical bills
Personal loans and payday loans
Past-due utility bills
Past-due rent (though eviction rules can still apply)
Most civil judgments
The remaining balance owed after a car repossession or home foreclosure

You can begin your financial life anew without the presence of crushing debts. Over time, you can begin to rebuild your credit, although the record of your bankruptcy will still appear on your report for seven years. Slowly, you may be able to begin obtaining additional credit a little bit at a time as part of your rebuilding effort.

Debts That Cannot Be Discharged in Bankruptcy

Not every debt is dischargeable in the Chapter 7 bankruptcy process. Some will continue to remain with you, even if you are successful in the bankruptcy process. Non-dischargeable debts include:

Child support and alimony
Most recent income taxes
Student loans, unless the debtor proves undue hardship in a separate court action
Criminal fines, penalties, and restitution
Debts for death or injury caused by drunk or drugged driving
Debts the court finds came from fraud or willful and malicious injury, if a creditor successfully objects
Debts the debtor fails to list in the bankruptcy paperwork, in some cases

How a Bankruptcy Lawyer Can Help

A bankruptcy lawyer can help you choose the right path out of debt and avoid mistakes. Your lawyer reviews your income, debts, and property to determine whether Chapter 7 or Chapter 13 fits your situation. The lawyer prepares and files your petition with the U.S. Bankruptcy Court in Baltimore, claims every Maryland exemption for which you qualify, and keeps your paperwork accurate. Your lawyer attends the meeting of creditors with you, responds to creditor objections, and deals with collectors on your behalf. This gives you a better chance to protect your home, car, and income while getting a fresh start.

Frequently Asked Questions

How long does Chapter 7 take in Maryland?

Most cases take about three to four months from filing to discharge.

Do I need a course before filing?

Yes. You must complete credit counseling within 180 days before filing and a debtor education course before discharge.

Can I keep my car if I owe money on it?

Usually, if you stay current on payments and an exemption covers your equity. Many filers sign a reaffirmation agreement.

Can my employer fire me for filing for bankruptcy?

No. Federal law bars private employers from firing you solely because you filed for bankruptcy.