Once the dust of your divorce has settled, you will be ready to move forward in your new life but may find yourself hindered by certain unexpected financial challenges. While divorce will certainly require some adjustment, you could be left with insurmountable financial obligations and insufficient income.
If you are facing serious money woes after the finalization of your divorce, there are legal options available to you. Instead of floundering in a cycle of missed payments and calls from creditors, you may consider filing for bankruptcy.
Debts, assets and post-divorce financial challenges
Virginia is an equitable property division state, which means that the court will attempt to distribute marital debts and assets fairly, though not necessarily equally. There are a number of factors that can be considered by the court when making these decisions, but regardless of whether you go to court or settle, your ultimate financial situation may be precarious.
Many of these post-divorce financial challenges can significantly impact your life:
- Child support obligations
- Tax consequences of retaining certain assets
- Running a household on one income
- Changes in insurance
- Division of retirement assets
These are serious challenges that may merit a serious legal response. Both Chapter 7 and Chapter 13 bankruptcies can offer relief to anyone in murky financial waters after divorce. It may be beneficial to learn if you are eligible and discover the most appropriate option for you.
How can bankruptcy help you?
The stress and anxiety of a recent divorce are overwhelming when coupled with a significant debt burden, but bankruptcy protection may provide you with the following benefits:
- Enacts the automatic stay, halting any contact or collection action from creditors
- Suspends wage garnishment
- Allows for the elimination of debt (Chapter 7)
- Provides a plan to pay off of debts over time (Chapter 13)
- Loan modification to allow you to keep your home
These benefits and the protection provided to you while in bankruptcy allow you to rebuild your financial standing and get a fresh start. When you emerge from the process, you will be better equipped to handle your post-divorce reality.
An experienced attorney knows what you have been through in your divorce, and he or she is prepared to help you make sound legal decisions for your financial future. If you are recently divorced and in financial trouble, a knowledgeable lawyer can explain all of the debt relief options available to you.