There are a number of ways in which credit card debt, divorce and bankruptcy are connected. For example, some marriages fall apart as a result of excessive credit card debt, which often results in frustration, stress and even arguments. On the other hand, if you are unsure how to manage debt during your divorce and how debt is divided in court, it is pivotal to review this issue closely. Sometimes, bankruptcy is also in the picture.
Filing for bankruptcy can help people get rid of their debt and move forward in life. Divorce can also help people move on from a toxic marriage and find a brighter future. However, it is crucial to approach these issues properly. Some people get divorced in the middle of bankruptcy, while others wait to file for bankruptcy (or divorce) until later on. According to the United States Courts, more than 772,000 people filed for bankruptcy during a 12-month period ending in March 2019.
The division of debt and bankruptcy
There are various issues to consider regarding divorce and bankruptcy. Often, credit card debt is divided between a couple when they end their marriage and both parties are responsible for repaying debts. However, some couples are able to eliminate credit card debt through bankruptcy. Sometimes, couples work together to eliminate debt even though their marriage has fallen apart, while others need to approach bankruptcy without the support or involvement of their former spouse.
The benefits of clearing credit card debt during a divorce
Some people are so overwhelmed by their divorce that they cannot focus on the bankruptcy process or they decide to postpone bankruptcy. However, credit card debt is very serious, especially since high interest rates and excessive fees are often in the picture. Moreover, many people feel as if bringing a dysfunctional marriage to an end provides them with a fresh start, and the same is true for bankruptcy. However, it is paramount to make sure that you have the ability to focus on legal matters regarding divorce and bankruptcy carefully.