The statistics for divorce in Colorado are staggering, with about half of all marriages ending in divorce. One of the leading causes of divorce is financial stress. It seems logical that after a divorce, one or both parties involved in the divorce may file for a Chapter 7 bankruptcy or Chapter 13 bankruptcy in Denver, Englewood, Highlands Ranch, or Littleton.
Many people enter a marriage and accumulate assets and possessions with the idea that they are a team. A break-up of that team, the marriage, results in two parties having to split those assets which were previously used together. Because of this, bankruptcy is a common occurrence for couples who have gone through a divorce.
After a divorce, adjusting your financial situation is very difficult. The marriage may have dissolved due to no fault of your own, but creditors still hold each party responsible for the financial decisions made during a marriage. Lowering your standard of living in Castle Rock, Cherry Creek, or Aurora to accommodate for the decrease in income is difficult. Bankruptcy may be the only option to keep from losing a beloved home or reliable transportation.
If your financial situation was already unsteady before the divorce, the break-up will almost surely be financially devastating. It is important to be proactive with a different financial setting and a safe, new income level that was much lower than it was previously. A Chapter 7 or Chapter 13 Bankruptcy will guarantee you a fresh start and stable financial picture as your readjust with the rest of your life as well.
Keep in mind that simply because you have filed for bankruptcy does not omit you from spousal payments (alimony) or child support. Those types of payments, along with student loans, are non-dischargeable debt when filing for a Chapter 13 bankruptcy or Chapter 7 bankruptcy. Your ex-spouse will have to file a “proof of claim” with the court and it is important to take into account the amount of those support payments as you discuss a bankruptcy with your experienced bankruptcy attorney.
If you are divorced and believe that bankruptcy might be a solution to your financial problems, contact experienced bankruptcy attorney Barry Arrington at 303-205-7870 for your best, fresh start possible.