If you are facing a divorce, you may also be facing financial difficulty. If you are moving to a new residence, need to buy furniture or items for your home, or are facing alimony or child support payments, you may find yourself in a very different financial situation than you were used to throughout your marriage. You should make sure that you take care of your credit after a divorce, especially if you are considering purchasing a home or a new car in the near future.
Many people who are struggling with their finances actually consider filing for bankruptcy. They often ask if they should file for divorce or bankruptcy first. Personal bankruptcy will affect your credit score. However, oftentimes, it is a necessity for some people to get a fresh financial start. It’s important to note that you will never need your spouse’s permission to file for bankruptcy either before or after your divorce.
While you may choose to file for bankruptcy at any time, know that you will be unable to dispose of any marital assets during a bankruptcy proceeding and an “automatic stay” will be placed on your finances. Therefore, the bankruptcy will have to be completed first, before the divorce can proceed. Additionally, if you choose to file for bankruptcy after a divorce, you should understand that bankruptcy will never discharge your obligations regarding alimony or child support payments. These types of debts are considered priorities under Section 523(a)(5) of the Bankruptcy Code, and therefore, you will be unable to relieve yourself from the responsibility to pay these debts.
If you find yourself struggling financially after a divorce, there are certain steps you can take to rebuild your credit and your financial health.
If you are facing a divorce and are concerned about your financial situation, contact an experienced attorney today at the Law Office of Michelanne Hrubic at 951-888-0631 to discuss your options and next best steps.
Fields Marked With An ” *” Are Required
"*" indicates required fields