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chapter 13 bankruptcy Archives

Older Americans more likely to file for bankruptcy

An increasing number of people in Maryland and across the country are filing for bankruptcy after the age of 55. Since 1991, the numbers have increased dramatically as have bankruptcy filings for those 65 and older. Bankruptcy can provide an important path for debt relief when people are struggling under the weight of unrepayable debt, collector calls and a declining credit score. It can allow people to escape the burden of discharged debt although there can be serious repercussions for people's access to credit.

Creditors have limits on collection activities

Being in debt often means receiving calls from creditors who want to collect the money owed to them. For those who don't have the money to pay their bills, this can be frustrating. Fortunately, there are laws that protect the people of Maryland from harassment by debt collectors. It's important for consumers to understand these laws so they can assert their rights.

Bankruptcy rate increasing drastically among seniors

The number of seniors who are filing bankruptcy in Maryland and across the country has been rising starkly in recent years. In most of the cases, the seniors filing for bankruptcy protection made less money than the population at large. Among senior households that filed for bankruptcy during the year 2016, 78% had less than the median annual income. In that year, bankruptcy filings by people 65 years old or older accounted for 12% of the total filings; that figure in 1991 was only 2%.

Student loan debt and bankruptcy

Student loan debt may be a major factor in some Maryland bankruptcy filings even though those obligations generally cannot be discharged. A study by the company LendEDU found that almost one-third of people who filed for Chapter 7 bankruptcy had outstanding student loans. Almost half of the total debt of that group on average was student loans. This means that even after these consumers file for bankruptcy, they still must pay off a substantial part of their debt load.

Chapter 13 bankruptcy can help you stay in your home

All kinds of people, including those who make decent money and have substantial assets, can find themselves in a financially complicated situation. Whether you missed work due to an illness or just overextend yourself trying to keep up with the Joneses, it doesn't take long for that to start ruining your life.

Chapter 13 bankruptcy can prevent repossession of your vehicle

Falling behind on bill payments and debts is a stressful situation for anyone to deal with. It is particularly frustrating and difficult for those who have had to finance important purchases. These items that you finance are vulnerable to repossession if you fail to make all payments in a timely manner.

Yes, you can file Chapter 13 with major assets or higher income

Social myths about bankruptcy are so persistent and popular that many people believe them without question. Unfortunately, that may leave a significant number of people cut off from the benefit of bankruptcy. They may inaccurately believe, for example, that only people with relatively low incomes qualify for bankruptcy protections.

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