Bankruptcy is a very real threat to men and women going through divorce. Bankruptcy may be an embarrassment but it might also be necessary for survival.
When you are struggling just to put food on the table you know how difficult it can be to pay off debts when there’s more debt than there is money coming in. Making minimum payments on credit card balances doesn’t reduce them; the balances can actually increase when new interest is added to the old principle. And there are very few, if any, lenders who are willing to accept a token payment on your house or car or even your medical bills.
For some people, the only way to get out from under a swelling and incapacitating mound of debt is to declare bankruptcy. For others, declaring bankruptcy is a way of life, a way of doing business, a way of keeping expensive assets without paying for them.
I considered bankruptcy after my last divorce and I discussed my options with two different attorneys, both that had experience with bankruptcy. The first attorney assured me it would be a simple process and asked for several thousand dollars in order to start the process. If I had several thousand dollars to hand to him, I wouldn’t have been considering bankruptcy at that point.
The second attorney said filing would cause me more grief than relief and that I could probably work my way through the pile of debt although it wouldn’t be easy. He was right, it wasn’t easy but by working a second job and refinancing my house I was able to get myself financially healthy. I had some things on my side: good health, good work skills, no dependents, and a fear of ending up homeless. Fear is a great motivator, at least for me.
But there are people not so fortunate as I was. They have severe health problems or handicaps that limit their employment opportunities. They aren’t trained in marketable skills or the skills they have aren’t in demand or they pay minimum wage. They have small children and no childcare support so that they can get back into the workforce. They have debts that continue to build. For them, bankruptcy is the only choice they have.
Those of you considering bankruptcy need to understand exactly what you’re getting in to before you file. If you can avoid bankruptcy the future stress you’ll avoid will certainly offset the current stress you’ll face as you further scrimp to repay your creditors. If there is no other way, bankruptcy must be your choice.