Divorce is one of the most difficult events in a person’s life. Emotionally, it can be draining and it can cause stress not only for the couple splitting, but also for children, family members and mutual friends.
But there are many considerations to divorce aside from who will get custody of the kids, whether there will be child support or alimony payments and who gets the house? There are major tax implications and financial complications. Some cases, you may be best served by the skills of an experienced bankruptcy lawyer.
Colorado Springs bankruptcy lawyer Stephen H. Swift has been helping clients for years. All of these issues should be considered when going through a divorce because things that aren’t addressed can cause major problems in the future. Filing a bankruptcy as part of a divorce action can truly make for a new beginning. It can also release you from the financial demands of an unreasonable ex-spouse.
Colorado Divorce and Bankruptcy Often Intersect
This is a fact that many Americans may not realize. When a person is used to splitting every day bills, car payments, child care costs and a monthly mortgage payment, what happens when all those bills get split? Add on rent for a new apartment, plus moving expenses and deposits. Throw in child support or alimony payments on top of old credit card debts and you’ve got a recipe for disaster.
That’s why a Colorado bankruptcy filing may be a sound strategy for couples or individuals involved in a divorce.
Your strategy is dictated, to a large extent, by how amicable of a break-up you have. Many couples, even while they are considering divorce or about to go through divorce, will consider filing for joint bankruptcy in Colorado. Some benefits:
- Provides a fresh, clean start for both
- Allows debts that otherwise would be divided among them to be discharged before the split
- Finalizes a major issue before the divorce is final
But isn’t always an option. Some divorces are nasty and each spouse is simply looking to make life as difficult as possible for the other. In that case, an individual bankruptcy filing may still be advantageous. If a person is saddled with joint debt, such as shared credit card debt, loans that were taken out in both spouses’ names and other obligations that are passed on after the divorce is over, bankruptcy can help.
If a divorcee is able to use their credit score to obtain loans in their own name or set up rent at a new apartment just after the divorce, that can put them in a good position to file for bankruptcy protection. They can then get rid of the debt that was handed to them by the court and take this as an opportunity to make a clean break.
If I’m getting divorced and have questions about debt, what should I do?
The Law Office of Stephen H. Swift is always available for a free initial consultation to discuss your case and help you determine if bankruptcy is a sound option and whether a joint filing or a separate filing would work best. Every situation is different.
A divorce lawyer will be able to address some of these matters, but an experienced Colorado Springs bankruptcy lawyer is best consulted for a thorough examination of the options. These are major issues that can make the transition after divorce much easier if handled correctly.
Serving clients in in Colorado Springs, Pueblo, Denver and the surrounding area.
Colorado Springs bankruptcy – 866-893-2440 or 719-520-0164 – legal consultation
