Watching your marriage fall apart can not only devastate you emotionally, it can also significantly impact your finances. According to the Huffington Post, one of the most common reasons people file for bankruptcy is divorce. When you experience financial difficulties on top of the emotional strains of marriage, it can feel like everything is caving in on you.
However, you do not need to feel ashamed about considering bankruptcy. Although going bankrupt may sound completely negative, it can actually give you a necessary fresh start to your finances. Here are some reasons a divorce may lead you to bankruptcy:
Joint debt
Not only can debt cause your relationship to end, but it can also cause complications after divorce. Banks and creditors are not parties to your divorce, so they hold both of you wholly accountable for shared liabilities. If your ex-spouse fails to pay his or her fair share of the debt, creditors and banks may come after you. This can put a strain on your finances and cause you to file for bankruptcy.
Lower income
The single life not only means getting back into the dating scene, it also tends to reduce your income and increase expenses. Instead of sharing the mortgage and utilities with two incomes, you must deal with covering costs on your own. This may be too much for you to handle, and sometimes bankruptcy is the only sensible answer.
Your former spouse filing for bankruptcy
If your ex files for bankruptcy, you may be caught with all the liabilities you share. Suddenly, becoming responsible for entire debts can leave you scrambling. If you cannot make payments on your own, you may need to declare bankruptcy to free yourself from this burden.
Bankruptcy can be a viable solution to debt brought on by your divorce You should talk to a lawyer about whether such a financial option is right for you.
