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Should I File for Bankruptcy After My Divorce?

Posted on in Bankruptcy

Oak Forest divorce and bankruptcy lawyerNo matter how much money you have, you are almost guaranteed to take a financial hit when you get divorced. Even if it is just because you are splitting one household into two, you will likely have less money for bills, especially those that are growing due to snowballing credit card interest charges. If you and/or your spouse have spent the last few years racking up debt, even if you split it in your decree, then you may feel like there is no light at the end of the financial tunnel. Should you consider filing bankruptcy after your divorce? Everyone’s situation will be different, so it is important to understand your options.

Splitting Debts and Assets

Not all divorces are equal. If at all possible, you will want to try to work out a reasonable solution with the other party. If one of you has a higher income, that may mean they will be expected to take on more of the debt. If your spouse has run up credit cards and other debts on a joint account, it may be difficult to determine who actually made all those purchases. There are myriad scenarios when it comes to the finances involved in a divorce, especially if the marriage was a longer one. 

Besides splitting households, you will also be entering into territory that may be new to both you and your ex-spouse. You may have the added responsibility of child support and/or alimony. Therefore, if there is any way for you to go through your assets and bills together and come up with fair solutions, it is imperative that you do so. Your attorney can help you determine what solutions make sense, but you may want to consider mediation if you cannot come to an agreement in a timely manner.

Rebuilding Your Credit

If you do indeed end up getting over your head in debt during your divorce, you may get to a point where bankruptcy is your best option. You will typically have to wait until the divorce is final, and you may need to have your ex removed from joint accounts before you can proceed. Depending on whether you file for Chapter 7 or Chapter 13 bankruptcy, you may be able to have your debts discharged, or a payment plan may be created in which you will pay off your debts over a period of three to five years.

If you do end up filing for bankruptcy, your credit score will probably decrease drastically, but sometimes it is still not that difficult for you to start building your credit up again. If necessary, you may be able to obtain secured credit or have a family member cosign a loan. 

Contact an Experienced Orland Park Bankruptcy Lawyer

Whether you are still in the process of a divorce or your decree has been finalized, the attorneys at Anderson and Associates, P.C. can help you decide if bankruptcy will be right for you. A skilled Tinley Park bankruptcy attorney will be able to go over your finances with you and let you know about your options. Call 708-226-9904 today to set up your free consultation.



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