When many Maryland residents think about personal bankruptcy, they may envision the step as though it were the end of some financial road — a virtual dead end in terms of one’s financial success story. In reality, however, many individuals who achieve high levels of wealth and success turn to bankruptcy protection to move beyond a period of financial strife. Bankruptcy is not an indicator of financial failure, but it is a powerful tool used to regain financial stability.
For example, many physicians elect to file for bankruptcy protection in order to address pressing money troubles. While doctors earn high levels of income, changes in insurance have narrowed the profit margins for many, especially those who have gone into business for themselves. Factor in the increasing cost of drugs, medical equipment and malpractice insurance, and it is no surprise that so many doctors seek bankruptcy protection.
Another career field in which many individuals eventually file for bankruptcy is the entertainment industry. Entertainers often experience sudden and drastic changes in their levels of success, along with spikes and dips in income. For many, failing to invest when times are good combined with excessive levels of spending lead to serious financial strain during less prosperous periods in one’s career. Filing for bankruptcy can give an individual the chance to repay debt through a payment plan or can lead to the elimination of some forms of consumer debt.
When thinking about bankruptcy, it is important to focus on the facts and not on perceptions of the process that are often false. Many successful individuals have sought bankruptcy protection and gone on to reach new heights after the bankruptcy process is complete. In many cases, filing for bankruptcy is the most financially sound decision a Maryland resident can make.
Source: theweek.com, “4 high-earning careers surprisingly likely to lead to bankruptcy”, Marine Cole, May 5, 2015