Many residents of Maryland find themselves in debt. This happens for various reasons, but if other options for alleviating the burden fail, bankruptcy might be best. These are some of the most common reasons why people file.
Some people use their credit cards as their main way to pay for things; over time, even making small, reasonable purchases can add up. Once coupled with major necessary spending, debt can become overwhelming and impossible to pay off in full or timely. Irresponsible spending can snowball and force a person to file for Chapter 7 or Chapter 13 bankruptcy.
Divorce takes a financial toll on people. Even the party not ordered to pay alimony or child support can find themselves in dire financial straits and have trouble paying their other debts. Bankruptcy might be the only way out of such a situation.
Many people who struggle with significant debt owe due to medical expenses. Often, these debts are unforeseen; a medical emergency can happen to anyone without warning. Once a person has to dip into their savings or work a second job and still have trouble paying back their medical debt, bankruptcy might be the best option for them.
Loss of income
Losing a job is another reason why people file for bankruptcy. If income is no longer coming in, it makes it difficult to pay the bills and leads to amassing debt. Bankruptcy can help relieve the burden.
Student loans can overwhelm anyone financially over time. While student loans aren’t usually dischargeable in bankruptcy, discharging other debt could make student loan payments easier to manage.
Bankruptcy isn’t for everyone; however, if you have serious debt and can’t pay it off any other way, it could be a lifesaver.