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Signs You May Need to File Bankruptcy During a Divorce and the Importance of Hiring a Bankruptcy Attorney

Divorce is not easy for anyone, unfortunately. It can be even more complicated when combined with financial difficulties. If you are contemplating divorce and facing financial issues, filing for bankruptcy may prove to be the most suitable solution for you. 

Signs You May Need to File Bankruptcy During a Divorce

  • Overwhelming Debt: If you and your spouse are struggling with overwhelming debt, filing for bankruptcy during a divorce may be the best option. Bankruptcy can help you eliminate or reduce debts. Unsecured debts, such as credit card obligations, medical expenses, and personal loans, can burden individuals financially.
  • Threat of Wage Garnishment: If you or your spouse is facing a wage garnishment due to unpaid debts, filing bankruptcy can stop the garnishment and potentially discharge the debt.
  • If you find yourself facing the threat of foreclosure or repossession of something you own, then filing for bankruptcy can serve as a crucial lifeline, providing much-needed support and relief during challenging times. It not only halts the process but also affords you the opportunity to rectify missed payments, enabling you to retain ownership of your home or car.
  • Disagreements over Debt: If you and your spouse cannot agree on how to divide debts during a divorce, bankruptcy can provide a solution. Filing jointly can eliminate debts before dividing the remaining assets.

Why Hire a Bankruptcy Attorney

  • Experience: Bankruptcy attorneys have the experience and knowledge needed to guide you through the complex legal process of filing for bankruptcy. They understand the laws and regulations surrounding bankruptcy and can provide valuable insight into your case.
  • Guidance on Which Bankruptcy Chapter to File: There are two basic types of bankruptcy, which are Chapter 7 and Chapter 13. An experienced bankruptcy attorney helps determine which chapter is best for your situation.
  • Protection against Creditors: Once you file for bankruptcy, creditors are legally required to stop collection activities. A bankruptcy attorney can protect your rights and ensure creditors do not continue to harass you.
  • Assistance with Paperwork: Filing for bankruptcy requires a significant amount of paperwork. An experienced bankruptcy attorney can help you fill out necessary forms correctly and in a timely manner, reducing the risk of errors or delays.
  • Representation in Court: If your bankruptcy case goes to court, having an attorney on your side can provide valuable representation. They can argue on your behalf and help ensure the best possible outcome for your case.
  • Minimizing the Risk of Mistakes: Filing for bankruptcy is a process, and mistakes can be costly. Hiring a bankruptcy attorney can minimize the risk of errors and ensure that your case is handled correctly.

Going through a divorce and considering bankruptcy can present a challenging situation. If you are facing overwhelming debt, wage garnishment, foreclosure, or repossession, bankruptcy may be the best option for you. 

Contact a local bankruptcy attorney to learn more.