• If you live or work in Maryland, you may be able to file personal bankruptcy on debts, such as credit cards and medical bills. However, you're not automatically entitled to liquidate eligible financial obligations through bankruptcy. Since 2005, Maryland filers with disposable income are often required to repay at least some of their financial commitments through Chapter 13 bankruptcy. Those who make less than the state's median income can usually receive permanent forgiveness of many debts through Chapter 7 bankruptcy.
  
  

Non-Dischargeable Debts

• Some debts cannot be forgiven or "discharged" through either type of personal bankruptcy, according to the United States Bankruptcy Court District of Maryland. No matter how dire your financial situation, you cannot include alimony, child support, court fines, tax bills less than three years old or monetary damages awarded to someone because you committed a crime, such as drunken driving. If your local, state or federal tax bills are more than three years old, you usually can include them in your case, according to the book "How to File for Chapter 7 Bankruptcy."
  
  

Basic Requirements

• You cannot file any type of personal bankruptcy petition unless you have first completed credit counseling, according to the United States Bankruptcy Court District of Maryland. A certificate that proves you completed the session, which is usually about 60 to 90 minutes long, must be included in your petition. Also, keep in mind that the credit counseling session must be completed with an approved provider, according to the Federal Trade Commission. Generally, you also need to include a list of your assets, income and debts when filing bankruptcy in Maryland. Your petition will automatically stop creditors from being able to sue you, take your vehicle, foreclose upon your home or garnish your wages. However, bankruptcy is not necessarily a way to save your home from foreclosure. A judge will likely rule that you cannot keep your home if you file Chapter 7 over Chapter 13.
  
  

Associated Costs

• You can file bankruptcy in Maryland without an attorney or "pro se," but you are expected to follow all local and federal rules, according to the United States Bankruptcy Court District of Maryland. If you hire an attorney, these costs are not determined by your local bankruptcy court; you must work out payment with the lawyer. Regardless of whether you hire a Maryland bankruptcy attorney, you must pay court costs to file your petition. As of 2010, it costs $274 to file Chapter 13 and $299 to pursue a Chapter 7 case. You cannot pay your court costs by personal check or credit card; in some cases, you may be able to set up an installment payment plan with the appropriate Maryland bankruptcy court.
  
  (References 1, 2, and 3)