If you have recently gone through a divorce, your financial situation has likely changed significantly. Since you probably lost the income from your ex spouse, you may be struggling to balance raising the children and earning an adequate income. You may also have a significant amount of debt resulting from the marriage and the costs of the divorce process.
Sadly, financial struggles after a divorce are not uncommon. This is why many newly single people consider filing for bankruptcy. They often do this in the hope of getting a fresh start and so that they no longer have to worry about overwhelming debt. Chapter 7 bankruptcy can be a great option for those with a low income after a divorce. The following are some of the advantages of filing for Chapter 7 bankruptcy as a divorcee.
It is the fastest way to file for bankruptcy
Unlike Chapter 13 bankruptcy, which can take between three and five years, Chapter 7 bankruptcy can be completed in a matter of months. This is because Chapter 7 bankruptcy involves the liquidation of assets you own so that your debts can be paid off.
It allows you to have a clean slate
As a person who has just ended their marriage, you are likely looking forward to a fresh start and a life that you can create independently. Chapter 7 bankruptcy gives you the best chance of wiping all your debts because, in the vast majority of cases, it offers debtors a debt discharge upon completion of the liquidation process.
It is only available to those with a low income in comparison to their debts
Chapter 7 bankruptcy is a desirable bankruptcy Chapter. This is why it is only available to those who do not have the financial means to pay off their debts using their income. Therefore, if you have a low income, this is a great option for you.
If you are currently approaching a divorce, you should think twice before filing for bankruptcy at the same time as you go through divorce proceedings, as this can complicate the process. Which process you should go through first will depend on your situation.
Financial struggles as a result of a divorce are common. Make sure that you take control of your situation by considering filing for bankruptcy. Contact Pierce & Shows for a consultation.