Bankruptcy is not a failure. It is a legal process — built into the U.S. Constitution and refined over more than two centuries — designed to give people a structured, protected path out of debt they cannot reasonably repay. At Atkinson Law, we help Maryland individuals, families, and small business owners understand their options and pursue the outcome that best fits their actual circumstances.

If You’re Here, You’re Not Alone — and You’re Not Out of Options

The people who walk through our door facing bankruptcy are not irresponsible. They are people who lost a job when they couldn’t afford to. People whose medical bills eclipsed what any savings could cover. People whose small businesses survived every challenge except the last one. People who did everything right and still ended up underwater on a house when the market shifted.

Debt accumulates for reasons. Bankruptcy exists to address it. And the attorneys at Atkinson Law have helped Maryland clients navigate Chapter 7 and Chapter 13 bankruptcy proceedings for years — not by treating bankruptcy as a last resort to be embarrassed about, but as a legal tool to be used thoughtfully and strategically.

What we offer at an initial consultation is not judgment. It is a complete, honest assessment of your situation: what you owe, what you own, what options the law gives you, and which of those options is most likely to get you where you need to go. Sometimes that’s Chapter 7. Sometimes it’s Chapter 13. Sometimes it’s neither — and we’ll tell you that too. Our goal is the outcome that actually works for you, not the one that’s easiest to process.

chapter-7-bankruptcy and chapter-13-bankruptcy

Our Framework for Every Bankruptcy Matter We Handle

The Facts About Bankruptcy That Most People Don’t Know Until They Ask

Bankruptcy carries a stigma that the law itself does not deserve. Most of what people fear about filing — losing their home, losing their car, never being able to get credit again, having it follow them forever — is either untrue or overstated. Here is what bankruptcy actually does:

It Triggers the Automatic Stay — Effective the Moment You File

Filing a bankruptcy petition activates a federal injunction called the automatic stay. Creditors, collection agencies, and their attorneys are legally prohibited from contacting you, garnishing your wages, levying your bank accounts, proceeding with a foreclosure, or pursuing any collection action for the duration of the bankruptcy proceeding. For people who have been receiving daily calls, facing a garnishment order, or watching a foreclosure deadline approach, the automatic stay is immediate, concrete relief.

It May Eliminate — Permanently — Qualifying Unsecured Debt

Credit card balances, medical bills, personal loans, utility arrears, and many other forms of unsecured debt can be discharged in a Chapter 7 or Chapter 13 bankruptcy. A discharge means those debts are gone — legally, permanently, uncollectible. The creditor cannot come back for them.

It Does Not Discharge Everything — Some Debts Survive Bankruptcy

Bankruptcy is powerful, but it has limits. The following categories of debt are generally not dischargeable:

•        Child support and alimony

•        Most student loans (with narrow exceptions for undue hardship)

•        Most tax debts (though some older tax debt may be dischargeable)

•        Debts arising from fraud or willful misconduct

•        Criminal fines and restitution

Knowing in advance which of your debts can and cannot be discharged is essential to evaluating whether bankruptcy — and which chapter — is the right tool for your situation. This is one of the most important questions we address at an initial consultation.

It Does Not Automatically Mean Losing Your Property

This is the fear that stops more people from exploring bankruptcy than any other. Maryland and federal exemption laws protect substantial categories of property from bankruptcy liquidation. Understanding which exemptions apply to your specific assets — and how to claim them correctly — is a core part of what bankruptcy attorneys do. We do not file without a complete picture of every asset our clients own, and we work to protect as much of it as the law allows.

Two Chapters. Different Tools. The Right One Depends on Your Situation.

The choice between Chapter 7 and Chapter 13 bankruptcy is not a matter of one being better than the other. Each is designed for a different financial situation and produces a different outcome. Understanding the distinction — and which applies to you — is the first substantive question we answer together.

One important note: eligibility for Chapter 7 is subject to a means test — a formula that compares your household income to the Maryland median income for a household of your size. If your income exceeds the threshold, Chapter 13 may be the appropriate path. We evaluate means test eligibility at every initial consultation so you know which option is actually available to you before making any decision.

You May Be a Good Candidate for Bankruptcy If Any of These Sound Familiar

There is no universal threshold that makes someone 'ready' to file for bankruptcy. But the following are situations where a consultation almost always makes sense — because the legal tools available are significant and waiting often makes the situation worse:

•        Your wages are being garnished or you’ve received a garnishment notice. Wage garnishment can take up to 25% of your disposable income. The automatic stay stops it the day you file.

•        You’re facing foreclosure or have missed multiple mortgage payments. Chapter 13 can stop a foreclosure in progress and give you up to five years to catch up on arrears — while keeping you in your home.

•        A creditor has sued you or obtained a judgment against you. A judgment can lead to bank levies, liens on your property, and wage garnishment. Bankruptcy can discharge the underlying debt and, in some cases, avoid the lien.

•        Medical debt has made it impossible to get ahead. Medical bills are among the most common drivers of bankruptcy filings and among the most cleanly dischargeable in Chapter 7.

•        You’re using credit cards to pay for basic living expenses. When credit is the only thing standing between you and your bills, the debt spiral accelerates quickly. Bankruptcy can stop it and reset the baseline.

•        Creditors are calling constantly and you don’t see a realistic path to repayment. If you cannot project a reasonable path to paying off your debt within a few years given your actual income and expenses, bankruptcy deserves serious consideration.

•        Your small business debt has become personally unmanageable. We represent individuals and small business owners. The analysis differs depending on how your business is structured, but the tools are often available.

Maryland Law Protects More Property Than Most People Expect

One of the most common misconceptions about bankruptcy — especially Chapter 7 — is that filing means surrendering everything you own to pay creditors. That is not how Maryland bankruptcy law works. Federal and Maryland state exemptions protect significant categories of property from liquidation. Key protected categories include (specific amounts are subject to change; we provide precise guidance at your consultation):

•        Home Equity. Maryland's homestead exemption protects a portion of the equity in your primary residence from creditors.

•        Vehicle. A portion of the equity in your vehicle is protected, allowing most filers to keep a car they depend on for work and daily life.

•        Retirement Accounts. 401(k)s, IRAs, pensions, and other qualified retirement accounts receive robust protection under both Maryland and federal law. In most cases, retirement savings are fully protected.

•        Earned Wages. Maryland provides specific protections for earned but unpaid wages.

•        Household Goods and Clothing. Ordinary household furnishings, clothing, and personal effects are generally exempt.

•        Tools of the Trade. Tools, equipment, and instruments necessary for your livelihood are protected up to applicable limits.

•        Life Insurance and Annuities. Certain life insurance proceeds and annuity values receive exemption protection.

Maryland gives filers the choice between state exemptions and a set of federal exemptions — which in some cases is more advantageous. Selecting the right exemption scheme for your specific assets is one of the most important decisions in the bankruptcy planning process. We analyze this carefully before recommending a filing strategy.

Substantive Guidance. A Non-Judgmental Environment. Two Attorneys on Every Case.

We Take the Time to Understand Your Complete Financial Picture

Bankruptcy is not a one-size-fits-all process. The right strategy depends on what you own, what you owe, your income, your goals, and which exemptions apply to your specific assets. We do not rush initial consultations. We take the time to understand every dimension of your situation so our recommendation is grounded in the full picture — not a quick read of the top-line numbers.

Yes, that includes everything. The house in Aruba qualifies as an asset. So does the designer coat. We ask the questions other attorneys sometimes skip because overlooking an asset in a bankruptcy filing creates serious legal risks. Thorough review protects our clients.

Two Attorneys Prepare Every Bankruptcy Matter Together

Bankruptcy filings involve detailed documentation, precise asset valuation, careful exemption planning, and court compliance at multiple stages. Two attorneys reviewing your matter means two people examining the financials, stress-testing the strategy, and ensuring the filing is accurate and complete before it goes to the court. In a process where errors can delay discharge or jeopardize an exemption claim, that dual review matters.

We Handle Both Chapter 7 and Chapter 13

Some bankruptcy practices specialize in one chapter and steer clients toward it. We handle both, evaluate both options for every client, and recommend the one that actually fits their situation. If you qualify for Chapter 7 but Chapter 13 better serves your goals — for example, because you’re behind on a mortgage and need the repayment plan structure to save your home — we’ll tell you that.

No Judgment. No Embarrassment. A Realistic Plan.

We have helped clients file bankruptcy because of medical catastrophes, job loss, divorce, business failure, and simple debt accumulation that outpaced income over years. The circumstances vary. Our approach does not: honest assessment, clear options, and a strategy built around what you actually need to move forward.

Free Initial Consultations

We offer free initial consultations for bankruptcy matters. Bring what you have — a list of debts, a rough sense of your assets, recent pay stubs. We’ll take it from there.

You Don’t Have to Keep Living With This. Let’s Talk.

The debt is real. The stress is real. And the legal tools available to address it are real too — if you know how to use them. Atkinson Law offers free bankruptcy consultations because the first step should not cost you anything. Call us, describe your situation, and let us tell you what your options actually are.

Chapter 7 discharge. Chapter 13 repayment plan. Automatic stay relief. Maryland exemption protection. Two attorneys on your case.

Protect. Preserve. Rebuild.

Serving individuals, families, and small businesses in White Marsh, Bel Air, Towson, Parkville, Baltimore City, and throughout Baltimore County, Harford County, and Maryland.

[ Schedule a Free Consultation ]  |  [ Call 410-882-9595 ]  |  [ 443-384-0013 (Bel Air) ]