Reasons To File For Bankruptcy If You're Newly Divorced

Law Blog

If you've recently completed the proceedings in your divorce case, all financial and personal issues should have been settled through the court proceedings and finalized by the judge overseeing the case. But, if you happened to be left with a heavy financial burden afterward, that you're unable to satisfy on your own, it can be difficult to rebuild your life. If you're cash strapped and finding yourself in a great deal of debt that you can't pay back, bankruptcy may be an option. Here are just a few reasons to file for bankruptcy, especially if you've just finalized your divorce.

If You've Suddenly Lost Your Source Of Income

Whether you lost your job during the divorce proceedings or thereafter, your finances can take a huge blow. Even with money in savings, household bills can add up quickly. If you're finding yourself with utility shut-off notices, unpaid mortgage payments and a vehicle repossession, it's important to stop further collection action, by filing for bankruptcy. Even if a judge ordered you to pay certain obligations as part of the divorce settlement, contact a reputable bankruptcy law attorney, such as David S. Riehl, Attorney At Law, to look into your situation and possibly offer a viable solution.

If You Were Left With A Large Amount Of Credit Card Debt

When going into a marriage, you never expect to leave the situation with an insurmountable amount of credit card debt. According to most laws in most states, both parties are responsible for debt accrued during the marriage, especially if both of your names were on the open account. A bankruptcy will be able to stop unwanted collection practices, including:

  • Wage garnishment
  • Bank levy
  • Repossession of personal property, including vehicles
  • Bothersome collection practices and harassing phone calls
  • Court-ordered judgments from creditors

In order to stop further collection, your attorney will review your personal case and if applicable, assist you with filing for bankruptcy through your local court.

You Were Ordered To Give Up Your Home

Did you have to give up your home to your spouse, per the divorce agreement? If so, finding a new place to rent or obtaining a new mortgage can be difficult, if not impossible if you have damaged credit. While bankruptcy won't improve your credit or FICO score right away, it erases old debt, including an unpaid mortgage and will more likely display as a closed account on your credit report. A bankruptcy will help stop banks and creditors from collecting on certain types of debt. The result is a fresh start so you can begin to rebuild your credit and eventually, possible obtain a mortgage in the future.

Medical Bills Are Piling Up

Have you lost your job because you are now disabled? Or maybe you had an injury or auto accident that has left you unable to work. If so, bankruptcy might be a good solution for you. Most medical bills must be paid or resolved before your divorce can be finalized. But, if you took on the responsibility to pay prior medical bills per the divorce agreement, but now you are unable to pay them, bankruptcy might be a solution.

Bankruptcy laws vary by state. Contact a reputable bankruptcy lawyer as soon as possible to assist with litigating your case and to help you find financial relief.


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Hurt at Work? Get the Compensation You Deserve

Getting hurt while on the job can leave you in pain and without an income for some time afterward, but that doesn't mean that you have to start going to the food banks to make ends meet. Working with a lawyer to file a personal injury case (if the injury was due to neglect by another party) is a great way to get compensation you deserve for lost work, and to get your medical bills paid so you don't have to pay out of pocket for high deductibles. This website was built with love to provide you with up-to-date information you can use when working with a lawyer, filing paperwork, and dealing with all of the hoops and red tape of your personal injury case. Hopefully you can find the support you need right here.