How Long Does It Take to File Bankruptcy in Maryland?
Filing for bankruptcy can be a life-changing step toward regaining control of your financial future. However, one of the most common questions Maryland residents have is, "How long does it take to file for bankruptcy?" The timeline depends on the type of bankruptcy you file—Chapter 7 or Chapter 13—as well as the complexity of your case and how quickly you can provide necessary information. In this article, we’ll break down the timeline for filing bankruptcy in Maryland, discuss the key differences between Chapter 7 and Chapter 13 bankruptcies, and help you determine which type is right for your situation.
Answering the Question: How Long Does It Take to File Bankruptcy in Maryland?
How Long Does it Take to File Chapter 7 Bankruptcy in Maryland?
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” is designed to quickly discharge unsecured debts like credit card bills, medical expenses, and personal loans. For Maryland residents, the process typically follows this timeline:
- Pre-Filing Preparation (1–2 Weeks):
Before filing, you must gather all required documentation, such as income statements, tax returns, bank account records, and a list of assets and debts. You’ll also need to complete a mandatory credit counseling course, which can usually be done online in a few hours. - Filing the Petition (1 Day):
Once all necessary information is collected, your attorney will file the bankruptcy petition with the court. Filing triggers an automatic stay, which halts most collection efforts, including wage garnishments and foreclosure proceedings. - Case Review and Trustee Meeting (4–6 Weeks):
After filing, a court-appointed trustee reviews your case. You’ll attend a 341 Meeting of Creditors, where the trustee and creditors can ask questions about your finances. This meeting typically occurs 30–45 days after filing. - Debt Discharge (3–4 Months):
If no complications arise, most Chapter 7 cases are completed within three to four months from the filing date. Once finalized, qualifying debts are discharged, giving you a fresh financial start.
How Long Does it Take to File Chapter 13 Bankruptcy in Maryland?
Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows you to create a repayment plan to pay off debts over three to five years. The timeline for Chapter 13 includes:
- Pre-Filing Preparation (2–4 Weeks):
Similar to Chapter 7, you’ll need to gather financial documents and complete a credit counseling course. However, additional time may be required to prepare a detailed repayment plan outlining how you’ll pay off debts. - Filing the Petition (1 Day):
Once the repayment plan is ready, your attorney files the Chapter 13 petition. The automatic stay immediately goes into effect, halting collection actions. - Confirmation of Repayment Plan (2–3 Months):
The court holds a confirmation hearing to approve your repayment plan, which typically occurs about two months after filing. During this time, you must begin making payments according to the proposed plan. - Repayment Period (3–5 Years):
Once the plan is confirmed, you’ll make monthly payments to the trustee, who distributes funds to creditors. At the end of the repayment period, any remaining qualifying debts are discharged.
Choosing the Right Type of Bankruptcy for Your Situation
Determining whether to file for Chapter 7 or Chapter 13 bankruptcy depends on your financial situation and goals. Here are some factors to consider:
- Income Level:
Chapter 7 is often best for individuals with low or no disposable income, while Chapter 13 is suitable for those with a steady income who can afford to repay some of their debts. - Asset Protection:
If you own significant assets, such as a home or car, and want to avoid liquidation, Chapter 13 may provide better protection. - Debt Type:
Chapter 7 discharges most unsecured debts, but it doesn’t provide a mechanism to catch up on secured debts like a mortgage or car loan. Chapter 13 allows you to reorganize these payments to avoid foreclosure or repossession. - Urgency:
Chapter 7 offers a faster resolution (about three to four months), while Chapter 13 requires a longer commitment (three to five years).
Consulting an experienced bankruptcy attorney is crucial to choosing the best option for your unique circumstances.
Why Contact The Law Offices of Nicholas J. Del Pizzo for Help with Bankruptcy in Maryland?
Filing for bankruptcy can feel daunting, but you don’t have to go through it alone. The Law Offices of Nicholas J. Del Pizzo in Baltimore provides personalized, compassionate legal assistance to Maryland residents facing financial challenges. Our experienced team understands the nuances of Chapter 7 and Chapter 13 bankruptcies and will guide you through the process step by step.
Attorney Nicholas J. Del Pizzo is dedicated to helping you make informed decisions about your financial future. From gathering documentation to filing your petition and representing you in court, we’ll ensure your bankruptcy case is handled with care and efficiency. Our goal is to help you achieve a fresh start with minimal stress.
The time it takes to file for bankruptcy in Maryland depends on the type of bankruptcy you choose and the complexity of your case. Whether you need the swift resolution of Chapter 7 or the structured repayment plan of Chapter 13, taking action sooner rather than later can help you regain control of your financial future. Contact the Law Offices of Nicholas J. Del Pizzo today for a free consultation and take the first step toward a fresh financial start. Let us provide the guidance and support you need to navigate the bankruptcy process with confidence.