Bankruptcy Strategies when Facing a Divorce
No one want to file a bankruptcy, But changes in our lives can force us into doing things we don’t want to. A divorce can be very hard on our credit. People who have never missed a payment on anything, now find themselves paying the bills on the last day or being late. Increase in expense can cause us not to be able to keep the credit cards the same way,and as times goes the house and cars could be to much to pay.
Where the bankruptcy comes in is both people are responsible for the debts no matter what the judge says. Example of this the car is in both names the husband is going to keep it but for whatever reason he falls behind and the car is reposed. The creditor is going to go after both people no matter what the judge has said.
The husband could have used the chapter 13 bankruptcy to put the car, all the credit cards and surrender the wife car in the plan. In doing this the payment could be less then what the car alone was.
The wife could do the chapter 7 bankruptcy surrendering his car and the credit cards. Now both people will not be responsible for what the other person does in the future, allowing them to rebuild their credit.
If a divorce is in your future a bankruptcy attorney should be talked to see how the bankruptcy laws could help.
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