Bankruptcy Caused by Divorce
Federal bankruptcy courts are filled with people who’s financial difficulties are directly caused by a divorce. Surviving a divorce financially is no easy task. Many people inevitably wind up in bankruptcy, especially those who had their marriage dissolve due to financial pressures. People try for years to get back on their feet, but with court orders to pay attorneys, the assumption of debt, alimony, and child support, the possibilities can become obsolete. Unfortunately the only option is to accumulate debt.
Credit card interest rates can be as high as 25 percent. This extreme interest rate continues to compound to the point where just paying the interest is a financial burden. After years of trying to pay bills, people find themselves deeper and deeper in debt at which point bankruptcy is inevitable.
Individuals, mostly men, file bankruptcy which is caused by divorce. This is a fact the government does not tell its people. When reports on bankruptcy are disseminated to the public, the reason is placed under credit card debt, consumer debt, or anything other than divorce. The reason they have credit card debt or other debt is specifically from the divorce. It is not always from overspending.
Unfortunately, bankruptcy does not always wipe the slate clean. You can not discharge certain debts in bankruptcy. These debts include student loans, alimony, child support, court orders to pay your spouse’s attorney, debt from fraud, which is proven in a court of law, employee withholding taxes, and fines from convictions.
Everyone has heard the cliche, "it’s cheaper to stay married." The reason is the financial destitution, which remains after a divorce. The amount of time to get back on your feet again may take up to 15 years with the risk of bankruptcy. Even with bankruptcy, your ability to get back on your feet again is challenged. Bankruptcy stays on your record for at least seven years. All application forms for loans ask if you have filed for bankruptcy in the past 10 years. This fact reduces your ability to obtain a loan and if so with any reasonable interest rate.
Even if you are not forced into bankruptcy, your lifestyle will be reduced. Financially you will not be able to enjoy the level of luxury you were accustomed to.
Useful Online Tools
Resources & Tools
AN EXCELLENT REASON FOR DIVORCE – One of the best reasons to end a marriage is domestic violence and high conflict because no one should be a victim in marriage.
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
3StepAgreementTM helps you put everything in writing! Every Lawyer and Judge will tell you to never rely on verbal agreements during your separation.
Thinking Divorce? Think Again, Book and DVD
What Happens to the Marital Home Upon Divorce
|Your Right to Child Custody, Visitation & Support
Cover Price: $
Your Price: $17.95
You Save: $7.00
"A Plain English Guide to Protecting Your Children"
Author: Mary L. Boland, Attorney at Law
|The information contained on this page is not to be considered legal advice. This website is not a substitute for a lawyer and a lawyer should always be consulted in regards to any legal matters. Divorce Source, Inc. is also not a referral service and does not endorse or recommend any third party individuals, companies, and/or services. Divorce Source, Inc. has made no judgment as to the qualifications, expertise or credentials of any participating professionals. Read our Terms & Conditions.|