Surviving Divorce and the Debt That Follows

Surviving divorce and understanding the divorce process is a challenge in itself, but did you know that divorce is also one of the leading causes of bankruptcy today? For those individuals getting divorced, it is far too easy to waste through the assets and end up with all the debt during a divorce.

This is very evident during the troubling economic times so many couples face today as they wade through credit card debt and foreclosures. When not handled with care, a divorce can catalyze a bankruptcy within months. Without that second income from a spouse, or the need to pay child or spousal support, money priorities quickly shift making it harder if not impossible to pay the bills on time or at all.

Take for example a divorcing dad who, prior to his divorce, brought home more than a million dollars a year. Just a few short years following his costly divorce, this divorcing dad was forced to file for bankruptcy.

There is help during divorce and after that assists individuals in paying off their debt without running to the courts for a bankruptcy when all else fails. The divorcing father would have benefited from a guide on debt designed to help its readers overcome their debt without the assistance of bankruptcy protection.

Think the bankruptcy syndrome does not apply to you? Don’t be so sure. According to Joseph Pomykala’s article “Wrestling with Bankruptcy,” the odds are stacked against you:

• In 1998, one of every sixty-eight families in the U.S. filed for bankruptcy. That number has increased on a regular basis throughout the years.
• In fact, bankruptcy claims have increased in number each year in the United States and now are more than twice the number of claims filed during the entire Great Depression.
• The average home is accountable for around fifty-eight thousand dollars in debt.
• Since 1978 credit card and unsecured debt have increased by about fourteen percent every year.
• About nine percent of those who file bankruptcy have filed for protection before.

Of course the most relevant statistic of all states that forty percent of all bankruptcies are a direct result of divorce, unemployment and medical crisis. The fact is divorce impacts an individual’s life in a way that is almost unimaginable. By using a guide on consumer debt, you can lower your risk of relying on bankruptcy for help.

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