The entire divorce process can be extremely overwhelming. There are many decisions to make regarding child support, child custody arrangements, and the equitable division of marital property. Following a divorce, many people feel that their finances have been completely devastated. In many cases they may need to move to a completely new residence and purchase household items, along with facing a new life paying bills independently without two incomes, and the possibility of child support or spousal support payments. If you find yourself in a challenging financial situation, you should take the time to consider all of your financial options. In some cases, this means filing for bankruptcy in order to get a financial fresh start.
Bankruptcy After Divorce
While it is true that the bankruptcy will impact your credit score, filing for personal bankruptcy can help give you some breathing room regarding your finances. It is important to note that if you make the decision to file for bankruptcy prior to the finalization of your divorce, you will not have the legal right to dispose of any marital assets during this period of time. Essentially, there will be an automatic stay placed on all of your finances, which will not be lifted until the divorce is finalized. This is important because all of the marital assets must be equitably divided within a divorce prior to an individual declaring bankruptcy. It is also important to understand that you never need your spouse’s permission to file for bankruptcy at any time. Filing for bankruptcy is an individual matter. However, if the Court decides in your divorce that you owe any spousal support or child support, these types of debts will never be discharged in bankruptcy at any time under Section 523(a)(5) of the Bankruptcy Code. However, while spousal support and child support are not discharged in bankruptcy, discharging other debts such as credit card debt, or medical bills, can give you the financial ability to pay those obligations much easier.
Repairing Your Credit After Your Divorce
Whether or not you decide to file for bankruptcy, you will likely need to spend some time examining your finances and repairing your credit after your divorce. There are certain steps that you can take in order to attempt to build strong financial health and rebuild your credit score. These include living on a budget, checking your credit score frequently, and making sure that all joint debts you had with your ex-spouse are paid in a prompt manner if you are both still listed as responsible for that debt. Also, you can consider getting credit slowly, and only making purchases that you know that you can financially afford.
Contact an Experienced Attorney
If you are facing a divorce, you may have serious concerns regarding your financial situation. Visiting with an experienced family law attorney can help ensure that your legal and financial rights are always protected. Contact the experienced family law attorneys today at Lankford & Moore Law to help you understand your legal and financial rights.