• Bankruptcies in Maryland are governed by the United States Bankruptcy Courts.Maryland state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
  
  Bankruptcies in Maryland are actually supervised by the United States Bankruptcy Courts. The Bankruptcy Code sets a uniform procedure to be followed by all bankruptcy courts located in every judicial district in the United States. There are two bankruptcy courts in Maryland, located in Greenbelt and Baltimore. A chapter 13 bankruptcy will need to be filed in the court that governs the filer's residential district.
  
  

Definition

• Chapter 13 is a type of bankruptcy that allows the individual or sole proprietor to pay off all or part of his debt. It is basically a repayment plan spread out over three to five years. This type of bankruptcy allows the filer to keep his home and other property. It is an option for people who have taxes, student loans or child support that a Chapter 7 bankruptcy will not wipe out.
  
  

Requirements

• In order to file Chapter 13 in Maryland, a person will need to provide evidence that she lives in Maryland. She is also eligible to file if she has a business or most of her assets in Maryland. Both of these situations require proof of at least 180 days in the state. If she cannot show this, she may also offer proof that she was in Maryland more than any other judicial district over the last 180 days.
  
  

Financial Conditions

• To be eligible for a Chapter 13 in Maryland, a person will need evidence of a regular, stable income with disposable income left after basic necessities are paid. He can have no more than $1,010,650 in secured debt--debt that is linked to property the creditor can take as payment--and $336,900 in unsecured debt--debt such as credit cards. He will need to propose a payment plan that shows all priority claims, such as taxes, are paid in full. He must pay the filing fee of $274, though he can make it in four payments if necessary.
  
  

Repayment Plan

• The proposed plan needs to be submitted to the bankruptcy trustee appointed to the Bankruptcy Court in either Greenbelt or Baltimore. This plan will be reviewed and distributed to all creditors. The creditors are given a chance to object to the plan. If it is approved, the filer then makes the monthly payments to the trustee, who distributes the funds to the creditors. If the monthly payments are completed according to plan, any unpaid debts at the end will be discharged.
  
  

Help

• The process to file bankruptcy may be challenging, stressful and confusing. The peoples-law website has a list of all the forms required and Maryland contact information for questions. It may also be helpful for individuals choosing to file Chapter 13 to seek the assistance of a bankruptcy lawyer. These attorneys can navigate the system for you and often include their fees in the repayment plan.