Bankruptcy often happens during one of life’s most expensive actions: divorce. As Tennessee couples end their marriage and split assets, they may find it extremely challenging to go from two incomes to one while still trying to maintain a household. They may find themselves facing financial challenges while having to worry about common divorce legal issues such as child support and alimony. While divorce and bankruptcy at the same time may seem too overwhelming for someone to take on, a bankruptcy can provide many benefits if debt is becoming too much to bear.
Unfortunately, both parties may be liable for debt even if one doesn’t own the asset. For example, the wife may get the car while the husband still pays half the debt. This can be a frustrating situation if the husband now has to buy a car for his own personal use. On top of that, he may be forced to pay alimony or child support – or both. Keeping up with all the creditors can prove challenging and cause him to fall behind on some payments.
Bankruptcy can help eliminate this issue. Most Tennessee residents may wish to eliminate debt altogether with a Chapter 7 bankruptcy. For those falling behind on child support, a Chapter 13 bankruptcy can help consolidate debt and create a manageable repayment plan.
Unexpected life changes such as divorce can lead to financial woes, but the good news is that bankruptcy can help. Property division, child support and alimony can all cause debt to quickly pile up. Contact us today to see if a Chapter 7 or 13 bankruptcy is right for your situation.