The number of personal bankruptcies has fluctuated over the years, but still, a number of filers are divorced. Having to get a divorce is a hard-enough decision. Getting stuck with a bunch of debt’s that you cannot pay is even worse. Let’s face it. It goes without saying that getting a divorce does not make you better off financially. In reality, it leaves you deeper in debt. Now you may be asking yourself when is the right time to file a bankruptcy if you and your significant other are planning on divorcing.
Bankruptcy Before Divorce
In this sense, you could be staying together because of your debts. There is nothing left of the relationship but you cannot leave because the debts are so immense. Why this makes sense.
- Less debt means less bickering over debts and an easier divorce.
- Less time would be spent figuring out what debts there are and how to divide them up, and hopefully, less money will be spent on divorce attorneys.
If debts are the root or your problem the bankruptcy would cause less debt to fight over, and maybe with less fighting you and your partner can part on better terms.
Bankruptcy During Divorce
Filing for a bankruptcy in the midst of a divorce is generally not the best of ideas. Filing during a divorce will only muddy up and delay things. When you file, all divorce proceedings must stop until either the bankruptcy is over or you get a court order to allow the proceeding to continue. So, unless that is your true intentions, filing bankruptcy during divorce is not recommended.
Bankruptcy After Divorce
You have finished your divorce and hopefully, it was not messy, and now you are on the road to “happiness.” Unfortunately, there are times getting a divorce can leave you with more debts than you can pay. How can you get back on the happy train when you are stuck with the debts of two on an income of one?
This is where a bankruptcy comes into play.
Bankruptcy is here to get rid of debt. Debt like credit cards, medical bills, and, if need be, debts on vehicles or houses you no longer have or cannot afford to pay. Even though it cannot get rid of things like child support it can many times get rid of some or all of the debts you got stuck with in the divorce.
Does that mean that bankruptcy is the key to getting back on the train to happiness? Could be. If you want to find out more about this subject, or how much debt you can get rid of, call us today. We offer a totally free and confidential consultation 423-267-8000.
Remember whether filing bankruptcy is right for you, or not, depends on your situation and your goals. The results of your bankruptcy will vary depending on your assets, debts, income, and expenses.
Written by: Rebecca Kidd