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When you wake up in the morning, do your thoughts immediately go toward how little money you have in your bank account and how many bills have piled up on your table? If so, you are not alone. Numerous people in Maryland and across the country struggle with financial issues that they feel are insurmountable.

Because your money problems come to mind first thing in the morning, you may never feel as if you will have a good day. You may even wonder how you will pay for your necessities if your situation continues to decline. In fact, you may already be insolvent.

Define insolvency

If the amount of debt you have accrued is more than the number of assets you have, you have become insolvent. Insolvency is a state of financial distress, and it can come about for many reasons. You may have lost your job and, along with it, your income. You may have experienced a medical emergency that left you with substantial medical bills. In another scenario, you may have put your money toward an investment that did not work out in your favor.

Whatever the reason, you now face a dire financial situation. Your creditors could even begin insolvency proceedings in efforts to obtain payment for the balances that you owe. However, insolvency proceedings and bankruptcy are not the same process. Still, the insolvency proceedings could result in the liquidation of your assets in efforts to pay your creditors.

Not necessarily permanent

Depending on your situation, insolvency may only be temporary. If job loss resulted in your financial woes and you manage to obtain new employment, you may find that you quickly become able to address your outstanding balances because of your new steady income. Of course, if your insolvency lasts for an extended period of time, you may feel that you will never get out from under your debt, despite your best efforts.

Bankruptcy

If your financial affairs do not seem to have a resolution in sight, you may want to consider filing for bankruptcy. This legal process could help you address your debts in the manner most suited to your particular circumstances. Understandably, it can seem intimidating to take such a substantial step, but working with a legal professional experienced in this area of law may help you feel more comfortable throughout the process.