Many people in Wisconsin have gone through a divorce. Some of those people may have also experienced the financial challenges that are so often part of the process. Some of those people may even have filed for bankruptcy as a result of divorce.
How Divorce Can Cause Bankruptcy
How can divorce lead to bankruptcy? For starters, divorce is not an inexpensive process. Most people often end up living on less despite higher expenses. Couple that with alimony, child support and other costs, and your finances can quickly unravel. When expenses become overwhelming, they can lead to unmanageable debt and ultimately prompt the need for bankruptcy.
Another situation in which bankruptcy can arise from divorce is related to the marital home. If divorcing spouses decide not to sell the house or can’t sell the house, one will likely take on the mortgage payments. If payments become too much to handle, bankruptcy may be the best option to get back on track.
Getting Your Finances Back On Track
Like divorce, bankruptcy can damage your credit score. Getting on track, however, is not impossible. By making your credit score a priority, you can begin to rebuild it to a healthy number.
To begin, focus on paying your bills on time. Timely payments can help boost your credit score and show creditors that you are serious about getting your finances back in order. Next, always be aware of your credit score. Checking it frequently can help you stay on track. Finally, use your credit card, but do so responsibly.
If you are considering bankruptcy after a divorce, there is nothing to be ashamed of. Bankruptcy is an important tool that has helped countless people in Wisconsin recover from troubling financial situations. Working with an experienced bankruptcy attorney can help ensure the process goes smoothly.
Source: Forbes, “Getting Divorced? Do Not Ignore Your Credit Score (and How to Rebuild it if You Did),” Emma Johnson, April 8, 2015