A cancer diagnosis could increase the likelihood that a Maryland patient might have to file for bankruptcy. In fact, people who get cancer file for bankruptcy at a rate that is more than twice as high as those without the disease. Even patients who have insurance face out-of-pocket payments as high as $12,000 for a single medication. However, there are ways to mitigate the financial impact.
New bill aims to ease student loan bankruptcy rules
It is a difficult process to get student loan debts discharged in a Maryland bankruptcy. However, the process may be easier if the Student Borrower Bankruptcy Relief Act of 2019 were to become law. By 2022, student loan debt in the United States is expected to be more than $2 trillion. There are doubts as to whether the entire balance would ever be repaid as roughly 25 percent of borrowers have missed payments or are in default.
Using 401(k) savings to pay down debts is risky business
Some Maryland residents dealing with debt lose all the money in their retirement plans, including their 401(k) accounts. However, using retirement savings to pay off debts is often a financial mistake. According to bankruptcy regulations, creditors are not allowed to touch the money invested in 401(k) plans. However, many debtors faced with serious financial obligations do use their 401(k) investments to pay down their debts.
