Bankruptcy and how it may relate to Divorce
Divorce is a blame game. A high percentage of people in America often come to lawyers after a bankruptcy to file for divorce, and our question is "why?". Couples often blame each other for the current situation. “Because you kept spending and maxing out your credit cards, we ended up in this situation.” “Because you could not keep a job and were too lazy to look for one, we had to file for bankruptcy.” These are just a few examples of how couples often blame each other for financial situations and start looking into filing for divorce.
A lot of financial issues in a marriage are caused by lack of communication, it is not surprising that a lot of couples go into far too much debt that they are not able to handle before they are able to talk about it. A lot of times people actually are divorced before filing for bankruptcy and are found in a predicament they did not know they even had. They start pulling up credit reports and see that their ex-spouse took out a car loan they did not know about, or credit cards etc. We have had several cases where the client has had more than $20,000.00 in debt without them knowing it!
In addition, a reduction in income can often put you in the predicament of filing for bankruptcy. You were used to receiving two incomes to pay the mortgage, utilities, etc. Then all of a sudden you find yourself with one income after the divorce, and are now not paying the full bills every month. They are so many things that can cause bankruptcy in our lives, and divorce is common one of them.
For more information on bankruptcy in or around the Houston area, schedule a free meeting with a bankruptcy lawyer from the Rashid Law Firm by calling us at 832-209-8833 to schedule a free initial consultation. We are here to help.