What will happen to my creditors if I file for bankruptcy?

If you file for bankruptcy in Maryland, your creditors will no longer be able to contact you about your debt, and they cannot take any legal action against you to recover the debt. Your creditors will also not be eligible to receive any payments from the bankruptcy court. The type of bankruptcy you file for will determine how your creditors are impacted. If you choose to file for Chapter 7 bankruptcy, the court will sell off your assets to pay off your debts. Any remaining debt will then be discharged, meaning your creditors will not receive any money from the court. If you choose to file for Chapter 13 bankruptcy, you will be required to make monthly payments to the court. The court will then distribute these payments to your creditors according to a payment plan that is agreed upon between you, your creditors, and the court. In either case of bankruptcy, it is important to remember that declaring bankruptcy does not erase all of your debt. Some debts may still survive a bankruptcy depending on the type of debt. These include child support debts, certain taxes, student loans, and any debts which arise from intentional tortuous acts.

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What will happen to my creditors if I file for bankruptcy?

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