Bankruptcy protection is a powerful financial tool, and one that can be a lifesaver for individuals and families who are drowning in debt. However, in order to achieve the benefits of a consumer bankruptcy, there are a multitude of rules that must be closely followed. For those in Maryland and beyond who fail to adhere to these rules, the result can be even worse than the financial strain that led them to file in the first place. Such is the case for one man who is now facing federal fraud charges after authorities say he failed to properly disclose all of his assets during his personal bankruptcy.
When considering options for debt relief, many in Maryland consider bankruptcy to be their least advisable choice. This is largely based in a range of beliefs about consumer bankruptcy that are not based in actual fact. A recent report took a look at the effects of the most recent bankruptcy reform of 2005, and the results suggest that taking steps to avoid filing for bankruptcy might be more financially harmful than moving forward with the process.