Consumers in Maryland who have had to rely on their credit cards after job losses or unanticipated medical emergencies may end up with mountains of debt without much hope of being able to pay. Gaining knowledge about bankruptcy protection when other options such as negotiating with creditors fail can be beneficial. While Chapter 7 or Chapter 13 bankruptcy may be the most suitable way to reestablish financial stability, it may be wise to consider all of the pros and cons before filing.
In order to benefit from the protections provided by Chapter 11 bankruptcy, one must file a petition with the appropriate bankruptcy court. This type of bankruptcy allows for the reorganization of debts, which can provide the petitioner with a way to halt collections efforts against an individual or organization. Most who file for Chapter 11 are business organizations, but individuals may be eligible for this option as well.