Divorce is a time when both spouses are at risk of financial hardship and falling into debt. This can especially be the case when the couple in question did not create a prenuptial agreement. Children can also increase the risk of either parent falling into debt after a divorce, as there may be legal fees connected to fighting for custody in court or expensive child support payments. There also may be spousal maintenance fees to pay, not to mention the difference between sharing living costs as a married couple compared with paying as a single person. Either way, it’s not uncommon for a person to file for bankruptcy after a divorce.
If you find yourself struggling to stay financially afloat, then you should seek financial help before things get out of control. Sometimes, however, you can find yourself struggling quicker than you realize, and this is when it may be best to consider filing for bankruptcy.
If you have recently divorced and are thinking about filing bankruptcy, then you have a few more things to think about. Bankruptcy is able to give you a clean slate by freeing you of the dischargeable debts you have. But what are dischargeable debts?
Dischargeable debts include credit card debt, medical bills, personal loans, and utility bills. When you become bankrupt, these debts are removed and you won’t have to pay them in the future. Non-dischargeable debts, however, will not be removed by bankruptcy and you’ll still be required to pay them.
Examples of non-dischargeable debt include child support and spousal support, which was set during your divorce settlement. You can have these terms changed, but this is outside of the bankruptcy process, and you’ll need the help of a lawyer to do this.
Before you decide to file bankruptcy paperwork, think about the money you owe. If you owe mostly back-dated child support for example, then bankruptcy will not help you, and you’ll need to explore other options instead. If your debts come from credit cards or medical expenses, then bankruptcy may be the best choice for you.
Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.