Bankruptcy Lawyer in Frederick, Maryland

Frederick home values have climbed hard over the last few years. That is good news until you are behind on other debt, and suddenly the equity in your house is the thing standing between you and a fresh start.

Here is what most people in Frederick have not heard yet. Maryland now protects up to $125,000 of home equity in bankruptcy. That took effect June 1, 2026. The old figure was roughly $27,900. If you were told a year or two ago that you had too much equity in your Frederick home to file Chapter 7, that advice is very likely out of date, and it is worth getting your numbers looked at again.

I am Sheereen McNair, a Maryland bankruptcy attorney. I help Frederick County residents file Chapter 7 and Chapter 13 and I will tell you plainly which one fits.

Where Frederick Residents File, and It Surprises People

Frederick County belongs to the Greenbelt Division of the United States Bankruptcy Court for the District of Maryland, at 6500 Cherrywood Lane, Suite 300, Greenbelt, MD 20770, phone (301) 344-8018. Not Baltimore. Frederick sits closer to Baltimore on a map, but the county is assigned to Greenbelt.

That sounds like a problem and it mostly is not. The entire process is remote. Your consultation with us is a phone call. Your documents are uploaded through our secure client portal. Your case is filed electronically, and the meeting of creditors is normally held on Zoom, where you appear on camera to verify your identity. Most Frederick clients never make the drive at all.

What it does mean is that you want a lawyer who actually practices in the Greenbelt Division, knows the trustees there, and is not learning the room on your case.

The Home Equity Question, in Plain Numbers

Maryland protects up to $125,000 of equity in owner occupied real estate. A house, a condo, a co-op, or a manufactured home permanently affixed to your land.

Three things people get wrong. Married couples cannot double it, so the $125,000 is the household total and not $125,000 each. There is no special senior amount, and if you have read otherwise, that is wrong. And Maryland has opted out of the federal exemption system, so you use the Maryland set. There is no choosing.

Equity means what is left after the mortgage. If your Frederick home is worth $480,000 and you owe $390,000, that is $90,000 of equity, and it fits inside the protection.

Chapter 7 or Chapter 13

Chapter 7 clears most unsecured debt, credit cards, medical bills, personal loans, in about three to four months. The filing fee is $338. You qualify if your income is at or below the Maryland median for your household size, and often even if it is above, once the means test accounts for your real expenses.

Chapter 13 is the one to reach for if you are behind on the mortgage and want to keep the house. Filing stops the foreclosure, and the plan lets you spread the missed payments across three to five years while you resume the regular payment. The filing fee is $313. You do not have to produce the past due amount in a lump sum.

What About My Car

Maryland has no separate vehicle exemption. Car equity is protected through the wildcard, which covers up to $6,000 in cash or property of any kind and is shared across everything you apply it to. If your car is worth about what you still owe, there is little equity to protect and you keep it as long as you keep paying.

Frequently Asked Questions

Where do Frederick residents file for bankruptcy?

Frederick County is assigned to the Greenbelt Division of the United States Bankruptcy Court, at 6500 Cherrywood Lane, Suite 300, Greenbelt, MD 20770. Not Baltimore, which surprises a lot of people. Cases are filed electronically and the meeting of creditors is normally on Zoom, where you appear on camera to verify your identity, so most Frederick clients never make the drive.

How much home equity does Maryland protect in bankruptcy?

Up to $125,000 of equity in owner occupied real estate, raised from roughly $27,900 effective June 1, 2026. Married couples cannot double it and there is no separate senior amount.

I was told I had too much equity to file Chapter 7. Is that still true?

It may not be. Maryland's homestead exemption went from roughly $27,900 to $125,000 on June 1, 2026. Advice given before that date was based on the old number. It is worth having your numbers looked at again.

Can Chapter 13 stop a foreclosure on my Frederick home?

Yes. Filing stops the foreclosure immediately, and the Chapter 13 plan lets you cure the missed payments over three to five years while you resume the regular monthly mortgage payment.

Does Maryland let me use the federal exemptions instead?

No. Maryland has opted out of the federal exemption system. You use the Maryland exemptions.

Do I have to come into an office to file bankruptcy?

No. Everything is remote. Your consultation is a phone call, your documents are uploaded through our secure client portal, your case is filed electronically, and your meeting of creditors is normally held on Zoom, where you appear on camera to verify your identity. Most clients never travel anywhere.

Worried About the Equity in Your Frederick Home? The Law Changed.

Free 15 minute phone consultation. No drive, no office visit. We will run your actual numbers against the current exemptions and tell you honestly where you stand, including if the answer is that you should not file. Call 240-896-3253 or book online.

Related reading: Maryland's New $125,000 Homestead Exemption, Chapter 7 Bankruptcy in Maryland: The Complete Guide, Chapter 13 Bankruptcy in Maryland: The Complete Guide, and Will I Lose My House If I File Bankruptcy?.

Related pages: all our Maryland locations.