Divorce and the Impact it has on Bankruptcy
When you truly look at divorce proceedings and the financial impact they have on all parties involved, it’s easy to see why divorce is one of the leading causes of bankruptcy in Texas. When a divorce happens, the two salaries that were previously supporting a single household are now supporting two households and lifestyles. This can be difficult on anyone, and Texas bankruptcy lawyers can help shed light on the specific financial impacts a divorce will have on any individual. Here are some of the general impacts relating to divorce and bankruptcy.
Why Divorce is a Common Cause of Bankruptcy
Going through divorce proceedings is expensive enough with the legal bills to pay. Then when you throw in financial responsibilities like child support payments, filing for bankruptcy in Texas can become a reality. Filing for bankruptcy can eliminate certain debts, but child support payments cannot be eliminated. The only effective way to make the payments more manageable is to take the issue to the family court and ask for payment adjustments, negotiate repayment plans or other strategies. Working with a Fort Worth bankruptcy attorney can help make the bills more manageable, even if they can’t be eliminated completely.
How Bankruptcy Affects Both Parties From The Divorce
When a divorce has been finalized, each party has to continue making payments on the assets granted to them, such as the house, car or other items. If one party stops making payments and files for bankruptcy, then the ex-spouse may be contacted by creditors seeking payment. This scenario is a real possibility, so filing for bankruptcy in Texas can impact you in a divorce, even if you’re not the one who filed.
Seek Legal Counsel Before Making Decisions
No matter how much you think you know about the ins-and-outs of a divorce proceeding, it’s never a good idea to make a decision without consulting with a lawyer. Keeping on top of your finances after a divorce can be difficult and a major adjustment to your lifestyle, but by making the right decisions, you can avoid filing for bankruptcy in Texas and have a better opportunity to live the lifestyle you desire.
Bryeans & Garcia, PLLC are Texas bankruptcy lawyers who are ready and eager to help clients in any bankruptcy situation. Many of our clients recently went through a divorce, and we have helped them with their financial situation, even if it means filing for bankruptcy. We will look at all of your possible options, since each situation is unique. To schedule a consultation at our Houston or Ft. Worth offices, contact us today.