Divorce can change your life on many levels, including financially. If you need to file bankruptcy after your divorce, you are likely one of many going through with this legal process.
According to the United States Courts, in 2020, bankruptcy filings in the U.S. totaled 544,463. Although bankruptcy is a viable option to help you get a fresh financial start after divorce, there are things to know about the impending process.
File at the right time
During your divorce, you or your spouse may want to file for bankruptcy before you finalize your settlement. But in most cases, you should wait to file for bankruptcy until after you get divorced to uncomplicate the process.
Avoid letting emotions dictate your choices
Navigating life after your divorce can be emotional and confusing. Keep in mind that filing Chapter 7 or Chapter 13 bankruptcy can impact your life for many years to come, so you should make this decision carefully and rationally.
Understand a divorce decree’s impact on your debt
You may assume that since your divorce decree assigns certain debts to your ex, you are no longer responsible for the outstanding balance. But the creditor can still pursue you for debts you acquired, even if your divorce decree absolved you of responsibility.
If you have serious debt problems after your divorce, bankruptcy can help. As long as you file at a beneficial time, make this decision rationally and fully understand how this process can impact your debt, you can move towards financial recovery.