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.
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