Chapter 7 Bankruptcy Attorneys in White Marsh & Bel Air, Maryland

Chapter 7 bankruptcy eliminates most unsecured debt — credit cards, medical bills, personal loans — in three to six months. In Maryland, it accounts for the large majority of all bankruptcy filings. Whether it’s the right tool for you depends on your income, your assets, and which debts you’re carrying. We give you a clear answer at your first consultation, at no charge.

Not Everyone Qualifies for Chapter 7. Here’s How to Find Out.

The means test determines Chapter 7 eligibility in two stages. First: if your average monthly household income over the prior six months, annualized, is at or below the Maryland median for your household size, you qualify automatically. Maryland’s median income is among the highest in the country, meaning many residents clear this threshold. Second: if your income exceeds the median, a detailed calculation of your allowable expenses determines whether your disposable income is too high for Chapter 7. If it is, Chapter 13 is likely the appropriate path. We run this calculation at every initial consultation.

Most Unsecured Debt Can Be Eliminated. Some Survives Regardless.

Typically Dischargeable

•        Credit card balances

•        Medical and hospital bills

•        Personal loans, payday loans, and lines of credit

•        Utility arrears and lease obligations on surrendered property

•        Deficiency balances after vehicle repossession

•        Most civil court judgments

Not Dischargeable

•        Child support and alimony. These domestic support obligations are never dischargeable.

•        Most student loans. Discharge requires a separate adversarial proceeding showing undue hardship — a very high bar.

•        Most income tax debts. Recent tax debts (generally less than three years old) survive bankruptcy.

•        Fraud-based debts. If a debt arose from fraudulent conduct or intentional harm, it may be excepted from discharge.

•        Criminal fines and DUI-related injuries. Restitution and personal injury debts from DUI are not dischargeable.

Maryland Requires Its Own Exemption Schedule. Here Are the Specific Amounts.

Maryland does not allow filers to choose federal exemptions — the state schedule is mandatory. Dollar amounts are subject to periodic adjustment; we confirm current figures at consultation.

Two points worth emphasizing: retirement accounts are almost always fully protected — do not liquidate a 401(k) to pay debts that bankruptcy would discharge. And the $6,000 wildcard can be strategically stacked against any non-exempt property, including cash or a second vehicle.

From Filing to Discharge: Six Stages, Three to Six Months Total

1.  Credit Counseling — Complete an approved 60–90-minute course within 180 days before filing. Available online. We provide approved providers.

2.  Means Test & Petition Preparation — We calculate eligibility, inventory all assets, gather documentation, and prepare your petition and schedules. Accuracy is critical — errors carry legal consequences.

3.  Filing — Automatic Stay Begins — The moment your petition is filed with the U.S. Bankruptcy Court for the District of Maryland, the automatic stay takes effect. Garnishments, calls, and foreclosure proceedings stop immediately.

4.  Trustee Review — A trustee reviews your filing for non-exempt assets. In most cases all assets are exempt and a no-asset report is filed, meaning creditors receive nothing.

5.  341 Meeting of Creditors — 21–40 days after filing, you answer questions from the trustee under oath about your finances. Creditors rarely attend. The meeting typically lasts a few minutes. We prepare you thoroughly.

6.  Discharge — 60–90 days after the 341 meeting, if no objections are filed, the court enters the discharge order. Qualifying debt is permanently eliminated. Case closed.

Note: A second course — a debtor financial management course — must be completed after the 341 meeting and before discharge can be entered.

If You Want to Keep Your Car or Other Secured Property

Chapter 7 discharges your personal liability on secured debts like car loans. To keep the vehicle, you typically sign a reaffirmation agreement — a new contract restoring your personal liability as though the bankruptcy had not occurred. The court must approve the reaffirmation as not imposing undue hardship. If you later default on a reaffirmed debt, the creditor can pursue you for any deficiency. In some cases, continuing payments without reaffirming (‘ride-through’) is an option. We analyze each secured debt before making a recommendation.

Complete Exemption Planning. Accurate Filings. A Real Fresh Start.

The most consequential Chapter 7 work happens before the petition is filed: means test calculation, complete asset inventory, exemption selection, and schedule preparation. Your attorney reviews every filing with care — because a missed exemption or inaccurate schedule has consequences that are difficult to undo. We explain exactly which of your specific debts will and won't be discharged before you decide to file.

Find Out If Chapter 7 Can Give You a Real Fresh Start.

A free consultation with Atkinson Law gives you a specific assessment — not a general explanation. Means test calculation, exemption analysis, and an honest answer about whether Chapter 7 solves your actual problem.

Protect. Preserve. Rebuild.

Serving clients in White Marsh, Bel Air, Towson, Parkville, Baltimore City, and throughout Baltimore County, Harford County, and Maryland.