Dealing with a divorce is an emotional time for a family. Everyone involved deals with tough issues related to the end of a marriage. When a bankruptcy further complicates the situation, it can be overwhelming. Even if there were no financial troubles during the marriage, both parties can find themselves in debt after the divorce. All debts and assets need to be addressed and a plan should be made to manage them through the process of the divorce.
Divorce often involves many complicated matters such as dividing assets, parenting plans, and child support and alimony payments. Deciding who keeps the house, the cars, and even the furniture can be emotionally exhausting. If children are involved, it is necessary to decide where they will live and to work out visitation arrangements with the other parent. Child support and alimony payments can seriously affect your ability to pay bills. Many will also face foreclosure of the marital home in the time surrounding a divorce.
It is helpful if both parties in the divorce can work together and come to a compromise as to how things will be divided. This includes sharing the debt as well as any assets. Even though an agreement is made, one or both parties still may not be able to pay the debt they have agreed to take on after the divorce. Working together on these issues is not always possible, but the outcome is frequently more beneficial for both parties in the end.
Debt relief options are available to help ease some of the financial pressure. Chapter 13 and Chapter 7 bankruptcy are both alternatives that should be considered if you owe child support and also have unsecured debt. Though child support and alimony payments cannot be discharged through bankruptcy, many other bills can be included to reduce the financial pressure. Medical bills and credit card debt may be cleared to give you the fresh start you need to provide for your children. Problems may arise paying debts that you took on in the divorce proceedings. These debts carry special consideration when including them in bankruptcy.
A qualified bankruptcy attorney can help maneuver through the legal aspects and get you on the path to a solid future after your divorce. Many attorneys offer free consultations to help you decide if bankruptcy is the answer in a particular situation.