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Medical debt plagues countless Americans and often leads to financial distress and, in some cases, bankruptcy. The financial burden of health care expenses can be overwhelming. Many individuals and families find themselves in dire straits due to their inability to manage these costs. The number of Americans struggling to stay on top of their medical bills has grown so much that medical debt is now one of the leading causes of bankruptcy filings across the nation. What drives medical debt The rising cost of health

Overwhelming financial difficulties can be incredibly challenging to overcome. In certain cases, they can be near impossible to surpass without outside aid. Bankruptcy can provide relief from unmanageable debt. A common misconception that keeps many from using it is that it irreparably harms your credit score. Bankruptcy basics Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of the court. There are two primary types of bankruptcy for individuals, Chapter 7 and Chapter 13. Chapter

The prospect of losing a home due to financial difficulties is a distressing reality for many homeowners. In January 2023, nearly 32,000 U.S. properties had foreclosure filings, according to real estate data company ATTOM. Individuals facing foreclosure often wonder whether bankruptcy can put a pause on the foreclosure process. Chapter 7 Bankruptcy Filing for bankruptcy can help people alleviate their financial burdens. Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” involves the sale of debtors’ non-exempt assets to settle their outstanding debts. Once the courts

Financial problems can occur to anyone, at any point in life. It can be overwhelming, lead to sleepless nights and take away your peace of mind. If you find yourself struggling with insurmountable debt, you might be considering filing for bankruptcy. Bankruptcy can be a powerful tool that helps you regain control of your financial life. In fact, according to the United States Bankruptcy Court, over 7,000 Maryland residents filed for bankruptcy in 2022 and helped improve their finances. Finding a fresh start Bankruptcy can

The Chapter 7 bankruptcy process offers individuals a fresh financial start by discharging eligible debts. To navigate this process successfully, you need a clear understanding of the key steps involved. Prepare and file the bankruptcy petition The first step in the process is preparing and filing the bankruptcy petition with the bankruptcy court. The petition requires detailed information about your financial situation, assets, liabilities, income, expenses and other relevant details. Ensure accuracy and completeness when compiling this information. Activate the automatic stay Once filed, the

When your finances begin to spiral beyond your control in Maryland, you may start looking for ways to reestablish financial stability. Depending on how much debt you find yourself in and how much income you have, filing for bankruptcy may help you accomplish this goal. However, many people considering filing for bankruptcy hesitate because they have fears about potentially losing their homes in the process. Per Rocket Mortgage, the act of filing for bankruptcy does not automatically put your home at risk. Instead, whether you

Overwhelming debt can happen to anyone. For many people, bankruptcy is the only option. If bankruptcy is a potential option for you, consider the distinctions between Chapter 7 and Chapter 13 bankruptcies. What are Chapter 7 and 13 bankruptcies? Chapter 7 is a liquidation bankruptcy that halts most creditors from collecting. After three to four months, the bankruptcy will discharge and erase qualifying debt, such as personal loans and medical expenses. Both individuals and businesses can file a Chapter 7. Chapter 13 bankruptcy will reorganize

Once you fall behind on your bills in Maryland, it becomes increasingly difficult to catch back up. In addition to the bills you are already struggling to pay, you may now face fines and fees for late payments that increase your debt load even more. The deeper your debt becomes, the more likely you are to experience harassment at the hands of your creditors. However, filing for bankruptcy may grant you temporary protection in this area. According to LendingTree, the automatic stay is something that

Stimulus checks and payment protection loans kept many Rockville families and businesses afloat during the pandemic lockdowns. That, combined with courthouses being shut for months, kept personal bankruptcy filings low in 2020 and ’21. But these vital pandemic programs both ended in 2021. Since then, the economy has become volatile. Many households’ financial woes, which stimulus and PPP loans helped paper over somewhat, are now faced with massive debt. Meanwhile, rising interest rates and inflation are straining budgets even further and making it harder to

Chapter 7 bankruptcy involves liquidation. That is the sale of an individual’s nonexempt property, where the court distributes proceeds among creditors. Here is more on this type of bankruptcy and how it compares to others. Alternatives There are many types of bankruptcy besides chapter 7 liquidation. Businesses wishing to avoid liquidation or stay in business should avoid this. Chapter 11 is a better option in this situation. That type of bankruptcy allows for reorganization and debt reduction or extensions of repayment periods. Additionally, chapter 13