As more and more Americans find themselves heavily in debt, many will seek avenues back to financial stability. According to many reports, debt levels have increased steadily over recent decades, while incomes have not kept the same pace. For those in Maryland who owe more than they can ever hope to repay, bankruptcy protection might offer the fastest and most certain path back to solid ground.
Of course, not all debt is created equal, and owing money on a home, student loans or a vehicle is often a wise investment in one's future. However, consumer debt that is not secured by a house or car and was not incurred for the purpose of higher education is a different animal altogether. It is this type of debt that many financial analysts see as a detriment to the financial stability of many Americans.
Using statistics for both debt and income, it appears that many households are spending more than half of their monthly income on debt service. For those families that have two financed vehicles, a home loan and student loans, the scenario becomes even more dire. When an unexpected medical issue, a job loss or a divorce takes place, the tenuous stability of many families crumbles. That leaves some with little choice but to seek bankruptcy protection.
Filing for bankruptcy is never anyone's first choice. Most people will struggle for a long time trying to repay what they owe before considering bankruptcy protection. In cases where there is simply not enough coming in to cover what should be going out, bankruptcy offers a chance to regain financial footing, which can come as a welcome relief to many in Maryland.
Source: breitbart.com, "The Seeds of Revolt: American Families Owe Trillions of Dollars in Debt They Can't Pay Off", John Hayward, May 18, 2016