If you’re one of many Tennessee residents who has recently navigated divorce, you are no doubt doing your best to adapt to a new lifestyle, especially if you have children. The financial implications of divorce can be complex and may even cause a severe financial crisis in your life.
If property division proceedings didn’t go as well as you’d hoped they would or your debt has been piling up fast since you signed a settlement agreement, you might be searching for ways to eliminate debt and restore financial stability so that you and your children can make ends meet as you move on in life together after divorce.
Are you having trouble paying child support because of other debt?
If you’re being hounded by creditors and are having trouble keeping up with child support payments after divorce, you’re definitely not alone in your struggle. If you have a reliable source of income, you might be eligible for Chapter 13 bankruptcy, which is basically a program that enables you to restructure the payment plans you currently have with your lenders. This would mean all of your debt that is separate from child support.
Bankruptcy can be a valuable tool before you finalize your divorce
It’s true that there are several bankruptcy programs that can help alleviate debt and restore financial stability after a divorce. However, it pays to look into such programs before your divorce proceedings begin. Filing for bankruptcy before a divorce can be helpful in mitigating post-settlement financial distress.
Seek clarification of bankruptcy laws to make informed decisions
It’s possible that you might be eligible for one type of bankruptcy but not another. The more you learn about each program ahead of time, the better able you might be to determine a best course of action in a particular set of circumstances. At Richard Banks & Associates, in Tennessee, our experienced legal team can provide strong support to help you explore debt relief options and implement financial and legal strategies that may help you cope with divorce.