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Making the decision to file bankruptcy is a serious one.  Consulting with an experienced bankruptcy attorney in Maryland is always a good idea as laws vary from one situation to another.  Upon coming to the decision that filing is the best option for your, there are a few procedures that must be followed.  Generally speaking, in Maryland, the first step is to file a petition.  Once you make the decision to file bankruptcy in Maryland, many steps must  be followed to perfect the filing process. Generally, to file for bankruptcy in Maryland a debtor first files a petition.  This is followed by the filing of the following documents:

• Schedules of assets and liabilities

• A schedule of current income and expenditures

• A statement of financial affairs

• A schedule of executory contracts and unexpired leases

A bankruptcy lawyer in Maryland can also help you decipher what type of bankruptcy is best for you to file, chapter 7, 11 or 13.

Chapter 7 bankruptcy (or liquidation/straight bankruptcy)is the most commonly used in personal bankruptcy situations under the Federal Bankruptcy Code.  This is also normally the simplest and quickest to file.  Some perks if you will to filing chapter 7 are the following:

• Discharges unsecured debts

• Allows you walk away from liability on homes in order to avoid foreclosure

• Eliminates large debts from situations such as a divorce or uninsured medical crisis

Chapter 11 is used by both individuals and business for the sake of restructuring debt payments while retaining assets.  This is usually used in situations when an individual wants or intends rather to pay off their debts.  This is a big point of contrast from Chapter 7 and 13.  As mentioned individuals and businesses such as corporations, partnerships and sole proprietorships use this form of bankruptcy.

Chapter 13 allows one to make a 3-5 year repayment plan to creditors.  The amount that is repaid varies with debtor disposable income and results of a means test.  It is mandatory with chapter 13 that one has a regular source of income as well as some disposable.  Situations in which a chapter 13 bankruptcy may be used include:

• ceasing a hose foreclosure

• catching up on mortgage payments

• reducing car payments

• or in order to reorganize car and mortgage payments to an attainable plan while retaining assets.

Bankruptcy is like many situations in that experience counts.  An attorney who has been doing this for years and has been involved in countless situations will be able to inform you on what options you have and what would work best for you.