Chapter 7 vs Chapter 13 in Maryland: Which One Is Right for Me?
- Sheereen E. McNair, Esq.
- Jul 6
- 2 min read
Chapter 7 erases most unsecured debt in about four to six months and works best when your income is below the Maryland median and you do not need to catch up on a house or car. Chapter 13 sets up a three to five year repayment plan and works best when you are behind on secured debts, earn above the median, or have assets you want to protect.
Choosing between Chapter 7 and Chapter 13 is one of the most important early decisions in your case. Here is a plain language comparison to help you understand the difference.
How Chapter 7 works
Chapter 7 is the faster path. It discharges most unsecured debts, like credit cards and medical bills, usually within a few months, and you do not repay them. It fits people with limited income and few assets beyond what the exemptions protect.
How Chapter 13 works
Chapter 13 reorganizes your debt into a single monthly plan payment over three to five years. It is built for people who are behind on a mortgage or car and want to catch up, or who earn too much to qualify for Chapter 7.
The means test
Eligibility for Chapter 7 usually starts with the means test, which compares your household income to the Maryland median for your household size. For cases filed on or after April 1, 2026, the Maryland medians are $86,928 for one person, $114,611 for two, $135,949 for three, and $166,173 for four, adding $11,100 for each additional person. If your income is below the figure for your household size, you generally pass and can file Chapter 7. Above it often points to Chapter 13.
Which one protects your property
Both chapters use exemptions to protect your property. Chapter 13 gives extra tools to keep a home or car when you are behind, while Chapter 7 is simplest when your property is already within the exemptions.
How we help you choose
The right chapter depends on your income, your debts, and what you want to keep. We walk through all of it with you. Middleton Legal serves Maryland and Florida. For a free consultation, call 240-896-3253.
This article is general information and not legal advice. For advice about your situation, speak with a licensed attorney.
Related reading: Chapter 13 Bankruptcy in Maryland: The Complete Guide
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