Maryland Bankruptcy Rules
- There is one bankruptcy district in Maryland, which has two divisions. One in located in Baltimore, in the Garmatz Federal Courthouse, and the other is housed in the federal courthouse in Greenbelt. You must file your petition in Greenbelt if you live in Allegany, Calvert, Charles, Frederick, Garrett, Montgomery, Prince George's, St. Mary's, or Washington counties. Otherwise you must file in Baltimore.
- Pursuant to local rule 1002, at the time of filing the initial petition, a bankruptcy debtor must also file a master mailing matrix in form required by the clerk (see verification form in resources section below). This matrix must include the name and address of all creditors and their counsel. The debtor must also either pay all filing fees, or file a request for a fee waiver or to pay fees in installments.
- Bankruptcy filing fees can be paid either in cash or by cashier's check, certified check or money order payable to "Clerk, United States Bankruptcy Court." If you are granted leave to pay the filing fee in installments, you will be required to pay 25 percent of the total fee initially, and equal amounts every 30 days until the fee is fully paid.
- If for any reason a bankruptcy filing is incomplete, the clerk will issue a notice of deficiency, after which the debtor has 14 days to correct the deficiency. Afterward, the debtor can add creditors pursuant to local rule 1009 by providing a notice of amendment to the trustee and all creditors with a copy of the amended petition and a certificate of compliance.
- Maryland does not allow debtors to use the federal bankruptcy exemptions. There is no homestead exemption, but a house owned by a married couple is exempt if only one spouse is the debtor. Other exemptions include state and federal pensions, public benefits, court awards for lost future earnings, up to $1,000 in household furnishings, 75 percent of unpaid wages, up to $5,000 in work-related tools or equipment and up to $5,000 in any real estate or personal property. Additionally, in the first 30 days of bankruptcy or attachment of a lien, Maryland debtors can claim a wildcard exemption for up to $6,000 in cash or personal property.