When Maryland residents are going through tough times with their finances, they can feel like they are all alone and have limited options. In fact, the emotional toll of constantly dealing with creditors about debt burdens can be significant.
However, statistics show that those who are going through these issues aren’t alone. And, a recent news article details data that shows thousands of bankruptcy cases are filed in Maryland each year.
Bankruptcy filings in Maryland
According to the data in the recent news article, over 9,600 bankruptcy cases were filed in Maryland in 2023. The vast majority of the filings were under Chapter 7 – 62% of all filings. Another 37% were under Chapter 13. Chapter 11 bankruptcy filings were less than 1%.
So, why would Chapter 7 bankruptcy be the route that is most pursued? In short, it is probably the most likely route by which consumers in Maryland can get the majority of their debt discharged – as long as they meet the income requirements to fall under Chapter 7.
Our readers may know that Chapter 7 bankruptcy is often known as a liquidation. This is because under this form of bankruptcy all of the debtor’s non-exempt assets are sold off and the proceeds are applied toward outstanding debt. However, many assets are, in fact, exempt from the bankruptcy process.
If you are facing seemingly insurmountable debt burdens, you are not alone and you do have options. Chapter 7 bankruptcy is a valid means of getting your debt issues behind you and moving forward with a fresh start.