Divorces and Bankruptcy

Unfortunately, divorces and bankruptcy go hand and hand thus it wise to take this factor into consideration when speaking to any local or Virginia divorce lawyer. Divorce and separations round off the top three list for why individuals file for bankruptcy protection. Oftentimes, one spouse is shocked at what is later discovered about the other and sadly the more responsible one often pays the price. This is not an often discussed topic when speaking to lawyers but it is definitely worth mentioning.

The financial hardships that frequently take place during a divorce are tremendous, not even taking into account tax considerations of a new filing status as discussed in a previous post. I saw little data whether commencing a case for an uncontested or contested divorce with a lawyer results in a higher bankruptcy rate. This article will provide a more in depth view as to the underlying reasons divorces can result in bankruptcies down the line and more importantly what measures one can potentially take to protect themselves from becoming another statistic.

The cost of hiring a qualified divorce lawyer in Virginia or any other state is expensive in and of itself, but this is often a drop in the bucket compared to the other financial consequences that can potential ensue. Creditors want their debts repaid and realize that they likely have the best chance by targeting the more financial responsible person of the former couple. There is high likelihood that one spouse will end up owing all or a portion of the other’s debt. The debts are perhaps ones one person never even knew existed.

Adding insult to there are new living expenses such as another car or an additional place to live which one party frequently incurs a larger responsibility than the other. This and many other factors can leave little choice for a once financially solvent person to find themselves on the brink of or filing for bankruptcy. Reviewing a credit report beforehand is smart step to see if there are any potential complications along this route. Crucial is bringing up this matter to your divorce lawyer as at is often not considered till the consequences are more detrimental.

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