When you are struggling with ever-increasing debts, it may be difficult to work out what your options are to help you to get out of your situation. It is likely that constant communication with debt collectors will leave you feeling stressed, but you may worry that filing for bankruptcy is an admission of failure.
Filing for bankruptcy does not mean that you have failed. It can be a lucrative way to help you to get back on track with regard to your finances. One of the many ways in which filing for bankruptcy can prove to be a wise decision relates to the fact that some of your debts may be eligible for discharge. This means that you may be given the opportunity to be relieved of the burden of some of your debts.
How does debt discharge work when filing for bankruptcy?
When you file for bankruptcy, your debts become subject to special laws; those of the bankruptcy court. The bankruptcy court has special powers to be able to help you to get rid of your debts and move forward with your life.
If you are filing for bankruptcy under Chapter 7, this means that you may be able to discharge some of your debts. The scope of the debts that can be discharged will depend heavily on your particular financial situation, and the way that you have handled your finances in the past. There are many different grounds for debt discharge petitions to be denied, therefore, it is very important that you take the time to understand how the law works.
Why might some debt discharge petitions be denied?
A debtor may be denied a debt discharge under Chapter 7 bankruptcy if he or she has failed to manage his or her finances in the past, or committed a crime relating to bankruptcy. If the individual has acted fraudulently with regard to finances, it is likely that he or she will be denied a debt discharge.
If you are struggling with your debts in the state of Maryland, it is a good idea to look into your options when it comes to filing for bankruptcy. Reading more about the law will help you to make an informed decision.