Not surprisingly, many who have been through a divorce may inevitably consider bankruptcy protection because of the costs associated with ending a marriage.
First of all, obtaining a legal divorce can be expensive. Retaining an attorney often costs thousand of dollars and, if it is a contested divorce, legal expenses can add up quickly.
Typically as part of a divorce settlement, martital assets will be divided, which may decrease savings and retirement account balances as well as result in the loss of property.
In the aftermath of divorce, expenses typically increase because running two households is more costly than one and, in some cases, there may be child support or alimony to pay.
Sometimes the new fianancial reality can lead to a difficult financial situation, making it next to impossible to tackle debt that may be left over from the marriage and the divorce itself.
If you anticipate a problem getting back on your feet prior to or following a divorce, it is advisable to explore all of your options.
It may be that a Chapter 7 bankruptcy can help you to eliminate much of your debt allowing you to get a fresh start. Or, alternatively, a Chapter 13 bankruptcy might be a good option if you simply need a feasible repayment plan while you get back on track.
If you are considering divorce, you may want to consult with an experienced Illinois bankruptcy lawyer to discuss what the best approach may be. Sometimes couples file bankruptcy jointly
or separately prior to divorcing or it may be more advantageous to wait until the divorce is finalized depending on your unique financial circumstances.
Questions About Filing Bankruptcy Before or After a Divorce
Experience matters – Contact an Illinois Bankruptcy Attorney
Contact the Peoria, Illinois bankruptcy Law Offices of Charles E. Covey if you have questions regarding bankruptcy in a divorce situation. Attorney Covey will be able to help you determine if Chapter 7 Bankruptcy or Chapter 13 bankruptcy protection is a good financial strategy for you and your family. Contact us for immediate assistance at 309-674-8125.