Studies show that some people can be resilient in the face of a divorce. And yet it remains the second most stressful event in a human life, second only to the death of a loved one. The situation gets even more complicated and stressful when a bankruptcy is involved. This happens quite often as about 50% of personal bankruptcy filings are caused by a divorce or loss of job. Taking the right steps at the very beginning of all legal proceedings can help you get through a bankruptcy with minimal losses.
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3 Effective Tips on Dealing with Bankruptcy and Divorce at the Same Time
1. File for a joint bankruptcy before moving on to legal divorce
Use this method if you want to maximize the speed and efficiency of the proceedings. Both the bankruptcy and divorce will take months to complete legally. However, if you file in this order, you will be able to turn a new financial leaf and start on rebuilding your credit before the more complex and lengthy process of divorce is completed.
A joint filing for bankruptcy will be a good idea even if only your husband is the one to really need it. This will simplify your subsequent division of assets.
You should also bear in mind that having a shared debt means that filing for a joint bankruptcy is best. You won’t be able to do this after you divorce. Therefore, you should always consult a financial expert and your attorney before taking any legal steps.
2. Hire an experienced bankruptcy attorney
The US Courts Statistics state that about 91% of Americans hire an attorney to help them file for bankruptcy. It’s always the most efficient way to go as it allows you to avoid any mistakes that will complicate the process. Note that some of them may lead to fines and generally do some irreparable damage to your situation.
When dealing with a divorce, you should look for a bankruptcy attorney with experience in these specific cases. These legal professionals understand both the legal and emotional complexities of such cases. Therefore, they are able to organize the entire legal process more efficiently and navigate emotional landmines usually present in divorce cases.
3. Get coaching in smart budgeting
When going through a personal bankruptcy, you’ll get appointed a financial redress advisor, who will help you create a budget that fits your current situation. You should listen to their advice and stick to that spending plan.
However, you can also take a step further and learn other money management strategies that will help you get through this difficult period. There are many online courses (including some free ones) that can teach you this. You can also use helpful budgeting apps like Mint and PocketGuard.
Having y9our finances organized will help relieve some of the stress caused by the situation.
Dealing with a Bankruptcy and Divorce: Seek Help
It’s hard enough to deal with a bankruptcy or divorce on its own, let alone at the same time. However, you have to remain strong and you’ll get even stronger for it. This is a great time to seek help and support from your family and friends. Counseling will also be a good way to prevent a breakdown.