• Residents of Maryland have the legal right to pursue debt relief through personal bankruptcy. Maryland residents overwhelmed by debts they cannot pay typically pursue Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 case allowS a Maryland debtor to permanently liquidate most consumer debts, while Chapter 13 restructures existing debts into a court-supervised repayment plan. Before pursuing bankruptcy in Maryland, consumers should become familiar with local rules as well as prevailing bankruptcy law.
  
  

Credit Counseling Requirements

• Maryland debtors don't have to hire an attorney to handle their bankruptcy cases, according to the District of Maryland United States Bankruptcy Court. However, they must follow all local rules and laws; failure to read the appropriate information is not an excuse for even inadvertently violating a local or federal bankruptcy regulation.
  
  The court requires all petitioners to complete a federally-approved credit counseling session; the Maryland bankruptcy court does not be accept petitions that do not include evidence that the debtor completed the credit counseling requirement. Additionally, the Maryland court requires the counseling session be held no more than 180 days before the consumer files a bankruptcy petition.
  
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Costs of Bankruptcy

• As of 2010, Maryland charges Chapter 7 petitioners about $300 and approximately $275 for a Chapter 13 case. The District of Maryland United States Bankruptcy Court allows installment payment plans in cases of proven financial hardship. Debtors approved for an installment plan must pay 25 percent of their fees at the time of filing the bankruptcy petition, the next 25 percent within 30 days of filing, the next 25 percent within 60 days of filing, and the final 25 percent within 90 days after filing.
  
  Maryland filers can only pay bankruptcy filing fees with cash, cashier's check, certified check or a money order. Under local rules and bankruptcy law, individual Maryland debtors cannot use credit or debit cards or personal checks to pay bankruptcy fees. If you hired the services of an attorney, his representative can pay your fees using a company check or credit card.
  
  

Ineligible Debts

• Maryland upholds all federal laws regarding ineligible debts, according to the District of Maryland United States Bankruptcy Court website. Debts that ordinarily cannot be included in any bankruptcy case include federally-issued student loans, child support, alimony, court fines, and monetary damages related to drunken driving or other criminal activity. Federal taxes as well as Maryland state and local taxes may only be included in a bankruptcy if the debts are more than three years old, according to the book "How to File for Chapter 7 Bankruptcy."