When you have overwhelming debts that you cannot pay, the pressure can quickly take a toll on your physical and emotional health and affect your personal and professional relationships. Bankruptcy is an option that allows you to obtain some type of fresh start and give you hope for your financial future. To decide whether it's the right choice for you, it is important to understand what types of debt cause most people to file for bankruptcy.
Any Maryland resident can fall on hard times financially. If you have reached the point where you can no longer pay your debts and other expenses, you are likely considering your options to have some, if not all, of your debts eliminated. One option you may have considered is filing for Chapter 7 bankruptcy. Known as a liquidation bankruptcy, Chapter 7 allows you to discharge some of your debt so that you can begin to rebuild your finances. However, you need to understand what debt you cannot eliminate through this type of bankruptcy.