How does our state stack up against others when it comes to the number of bankruptcy filings? While Maryland does not have the highest rate of bankruptcy filings, the state still falls within the top 25. If you find yourself facing overwhelming debt, you are not alone in today’s economic landscape.
If you are looking to regain control of your finances, Chapter 13 bankruptcy is a valuable option.
The benefits of Chapter 13 bankruptcy
Chapter 13 bankruptcy offers several benefits that can help people navigate their way out of debt while preserving assets and maintaining a sense of financial stability. In 2022, 157,087 people filed this type of bankruptcy, which allows individuals to create a structured repayment plan that spans three to five years. This means debtors can gradually pay off their debts, making it more manageable compared to the immediate demands of Chapter 7 bankruptcy.
One significant advantage of Chapter 13 is the ability to retain valuable assets like homes and cars. Through the repayment plan, debtors can catch up on missed payments and avoid foreclosure or repossession. Filing for Chapter 13 bankruptcy also offers a protective shield against creditors as well as has a less severe and shorter-lived impact on credit scores.
The changing demographics of filers
Over time, the demographics of those filing for Chapter 13 bankruptcy have shifted. As the nation ages, an increasing number of older Americans are seeking this form of financial relief. These changing demographics often happen due to rising medical expenses and retirement challenges. Chapter 13 allows filers to safeguard retirement savings and preserve their homes.
Understanding the advantages of this bankruptcy option can empower individuals of all ages to make informed decisions about their financial well-being.