In the current economic climate, the threat of losing one’s home looms large for many Maryland residents.
For example, rising interest rates and inflation can place homeowners in precarious financial positions. Credit card debt and medical expenses do not help, either.
Chapter 13 bankruptcy and home retention
For homeowners who worry about losing their homes, Chapter 13 bankruptcy may provide a viable option. This legal process allows individuals to restructure their debts, including mortgage arrears, into a manageable repayment plan. By filing for Chapter 13 bankruptcy, homeowners may be able to keep their homes while addressing other outstanding debts.
You can also explore government programs, including the Maryland Mortgage Program, that may offer relief options for eligible homeowners.
Rising interest rates and inflation
As interest rates climb, the cost of borrowing money increases, affecting variable-rate mortgages and potentially stretching homeowners’ finances. Inflation further compounds the financial strain. If you are struggling, address your debt situation promptly to prevent the risk of foreclosure.
Credit card debt
The average household in the United States carries about $7,951 of credit card debt. High interest rates and other factors can cause this debt to quickly spiral out of control.
Medical expenses
Medical bills contribute significantly to financial distress. To mitigate this risk, two avenues are to negotiate with health care providers and inquire about financial assistance programs.
In the face of rising interest rates, inflation and mounting debt, the threat of losing your home in Maryland is a serious concern. By taking proactive steps and considering Chapter 13 bankruptcy when necessary, homeowners can increase their chances of protecting their homes and achieving financial stability.
