How to Avoid Filing for Bankruptcy after a Costly Divorce

Going through a divorce is tough enough to deal with emotionally and mentally, but financial problems can easily surface and cause even more distress after a divorce.  Some people have to go as far as filing bankruptcy just to cope with the financial difficulties they face.  If not managed well, however, filing bankruptcy can be a major financial setback.  Here’s how to avoid filing for bankruptcy after a costly divorce:

Step 1:  Understand the drawbacks.

The first step to avoiding bankruptcy is to understand the repercussions of filing for bankruptcy.  Although bankruptcy can save you the trouble of dealing with collectors, personal bankruptcy has a long-lasting effect on your credit.  In fact, the bankruptcy filing will last for ten years on your credit report, which can keep you from acquiring credit, getting insurance, or even getting a job more easily.  Remember, filing for bankruptcy should only be used as a last resort for dealing with your debt.

Step 2:  Get on top of things.

The next step is to try and pull yourself and your life together.  The sooner you can pull yourself together, the sooner you will be able to concentrate on doing what it takes to get things better.  Make sure you sort out your assets, getting to all of your belongings, properties, and investments.  Focus your attention and energy into your career to take your mind off of the divorce issues.  Keep active in your life so you are always working toward making things better.

Step 3:  Get help.

No matter how much you believe that you can deal with your struggles on your own, why deal with it alone if you don’t have to?  The sources for help seem endless.  You can get help from relatives, friends, loved ones, and colleagues, not to mention bankruptcy consultation agencies, divorce attorneys, and financial advisers.  Remember that you are not alone, because there are a lot of people out there who can help you get through both your emotional and your financial hardships with your divorce.

What you can do is set personal differences aside and focus on the issue at hand.  Work with your attorney and even your former spouse to arrive at a better settlement.  Be open about your current financial situation to find a better solution.

Photo Credit : ryaninc

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Comments

  1. First of all, think whether the divorce is really appropriate and necessary, remember that filing a divorce can cost you more than just your money but your reputation and respect as well. It also adds further burden to your wallet if your spouse demands you to support the children, even if they are not in your custody. Talk things out first before settling for divorce, even if you have irreconcilable differences and irritate each other’s nerves, remember that sticking together for the sake of financial stability is better than finding yourself in a serious predicament.

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