What Are the Differences Between a Washington DC and Maryland Bankruptcy?

Many people who work in the district may live in Maryland and vice versa. Thus, if you are considering filing for bankruptcy, you may be wondering what the main differences are when choosing between filing in Maryland or Washington DC. Some people may have no option but to file in one place or the other, other individuals may have an option, depending on the specific situation. Each offers certain advantages, which you can use to your fullest advantage when you have an experienced Washington DC and Maryland bankruptcy attorney on your side.

Washington DC and Maryland Bankruptcy Exemptions

Whether you are filing a Chapter 7 or Chapter 13, both Maryland and Washington DC allow you to claim certain exemptions during the bankruptcy process. These exemptions help you to keep your home, vehicle and personal effects while allowing you to wipe your financial slate clean and get a fresh start in life free of overwhelming debt.

Washington DC exemptions are typically available only to someone who either lives in or earns a majority of their income within the district. If you live in Maryland and only occasionally work in Washington, you will most likely need to file using either the Maryland or federal exemptions.

It is also necessary to note that the lists of exemptions are mutually exclusive, i.e., you cannot mix and match from the two. There are also federal exemptions that you may use when filing for bankruptcy. However, you cannot mix and match between these, either.

The following are just a few of the exemptions available in a Chapter 7 or Chapter 13 filing.

WASHINGTON DC

  • $850 wildcard exemption
  • $2,575 in vehicle equity
  • $8,625 in books, clothing and pets

MARYLAND

  • $21,625 in home equity
  • No motor vehicle exemption
  • $11,000 wildcard exemption

Washington DC and Maryland Wage Garnishment Law

Washington DC and Maryland both allow exemptions for “earned but unpaid wages” – payment for work you performed before filing for bankruptcy but have not yet been paid for. In general, you are allowed to keep up to 75% of the wages you earned up until the day you filed for bankruptcy.

Our Washington DC and Maryland Bankruptcy Attorney Can Help

Whether you need a Maryland or Washington DC bankruptcy attorney, contact our office today for a free consultation. Our experienced Washington DC and Maryland bankruptcy attorney can work with you to determine the best course of action for you and your family as you enter the bankruptcy process. There is no need to go through this process alone, let us guide you through a Chapter 7 or Chapter 13 filing and help you get on the path towards financial stability and peace of mind.



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