08 Mar Bankruptcy and Divorce
Filing for bankruptcyand filing for divorce often go hand in hand. This is unfortunate, but the news isn’t all bad.
I believe that filing for bankruptcy can actually help save some marriages by eliminating overwhelming debt, which is a a major source of stress that causes marriages to break up.
Even in cases where divorce is imminent, discharging debts can make the process easier by eliminating fighting over the division of debt and who has to take on the burden of debt payments. It can free up income to pay for the support of two households and child support if payments on credit cards and loans don’t have to be made.
I read an article recently that seemed to imply that bankruptcy caused divorce, and that a couple who files for bankruptcy increases their chance of divorce, but I don’t believe that is true.
Of course, financial stress is a leading cause of marital problems so it is no surprise that many bankrupt debtors also divorce. Divorce, job loss and medical problems are part of the lives of many bankrupt debtors.
Many people in bankruptcy were solid bill payers until something knocked their legs out from under them. For two-thirds of these people, it was loss of a job, for 40 percent it was a serious medical problem and for 20 percent it was the economic fallout of divorce.
Divorce may be a factor leading to bankruptcy, but bankruptcy doesn’t cause divorce. If you are considering divorce, ask your attorney about bankruptcy and whether or not it can help with the debts your family is dealing with. If your divorce attorney doesn’t know the answer, a good bankruptcy attorney will.
My greatest pleasure comes not from advising clients how to have bankruptcy help a divorce, but from the clients who tell me that dealing with the debt by filing for bankruptcy helped save their marriage.
I Thought Bankruptcy Was Supposed To Cure My Money Troubles byRachel Lynn Foley Kansas City MO Bankruptcy Attorney
Budgeting is Critical in a Chapter 13 Bankruptcy Case byAdrian Lapas, Eastern North Carolina Bankruptcy Attorney Goldsboro NC Bankruptcy Attorney
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