Overwhelming debt is a common problem for Maryland residents. Those who are facing this issue might function under negative preconceived notions about bankruptcy. For many, bankruptcy is a useful strategy for moving forward without being weighed down by immense debt. Some individuals who have filed for Chapter 7 bankruptcy tout the process as one of the smartest things they have ever done.
Concerns about bankruptcy are many. Still, according to those who successfully filed, the overall benefits of Chapter 7 are undeniable. Fear can be mitigated by eliminating medical debt, credit card balances and more. The freedom from debt lets people restart their lives. Contrary to what some may believe, some filers can rebuild their credit relatively quickly.
Two-thirds of filings are made because of medical debt. Often, people are current on their credit cards and other payments when a medical emergency strikes and sends their finances into a sudden tailspin. Others are suddenly hit by family issues like a divorce. Couples who are in debt together might need to file for Chapter 7 bankruptcy to get a clean break. Another prevalent fear is that people who file for Chapter 7 bankruptcy will lose their assets. However, some properties can be retained if the filer shows they can pay the debt. Certain items -- like a needed motor vehicle -- might not be subject to liquidation.
To better understand the bankruptcy process, a potential filer may want to discuss their case with an attorney. Ultimately, learning about Chapter 7 bankruptcy is imperative for a reasoned decision regarding the benefits and costs.