Will the financial impact of your divorce lead to bankruptcy?

On Behalf of | Oct 14, 2022 | Chapter 7 Bankruptcy |

While your divorce will impact your life in various ways, one of the most significant impacts you will experience will be with your finances. After dividing marital assets, assuming a portion of marital debt and adjusting to new life circumstances, you may find that your financial security is not what it used to be. You might have concerns about your long-term stability and how you will pay bills, pay off debt and rebuild your savings.

For some Tennessee spouses, divorce can lead to significant financial struggles. If you find that you are not able to overcome these challenges on your own, it may be necessary to consider the benefits of bankruptcy. A consumer bankruptcy option could offer you a way to secure a better future and move forward after the financial devastation of a divorce.

Common struggles after divorce

Statistics indicate that the average cost of a divorce is around $15,000. In addition to the legal fees you may have to pay, you may also find yourself struggling due to a range of new expenses on a single income. If you stayed home during your marriage, or you will have to pay spousal or child support after your divorce, you may be unsure of how you can manage all of your financial obligations. Common money-related struggles you could experience after your divorce include:

  • If you and your spouse were on a shared health care plan, you will have to find new insurance coverage.
  • If you will be returning to work or finding new employment, you may have to pay for childcare.
  • During separation, divorce and post-divorce life, you may find yourself relying on credit cards, which could result in unmanageable balances.
  • There could be significant tax penalties associated with retaining certain marital assets after your divorce.

While you have the right to seek certain terms in your divorce order, you may still find yourself struggling after your divorce. Thankfully, there are options available to you that could offer you a way out.

Finding security

You will benefit from learning about how bankruptcy can help you rebuild your life after divorce. Chapter 13 or Chapter 7 bankruptcy could allow you the chance to deal with certain types of balances once and for all while enjoying protection from debt collection efforts and creditor harassment. If you are facing insurmountable financial struggles after your divorce, you will benefit from taking quick action to learn about how you can confront these issues and move forward.

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