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Filing bankruptcy before divorce: Things you should know

Not every Texas marriage is going to last a lifetime. In fact, yours may be among hundreds or thousands that end in divorce before 2019 comes to an end. Child-related issues may be among your highest priorities in such circumstances. However, like many spouses, you might also be quite concerned about finances. Some spouses file for bankruptcy before heading to divorce court.

Laws regarding such actions vary by state. If you're considering immediate debt relief as a viable option in your current situation, you'll want to seek clarification ahead of time of the regulations that govern such matters in this state. If it's your spouse that is threatening to file bankruptcy, perhaps claiming it as a means to keep you from obtaining certain assets in divorce, you may also want to speak with someone well-versed in Texas property division laws, so you know how to protect your rights.

Are you struggling with medical debt?

If you are struggling to keep up with bills from a recent medical emergency or procedure, you are not alone. After suffering an injury or dealing with a prolonged illness, you may find it more difficult to pay your regular bills and debts while managing what you owe to doctors, surgeons, specialists and hospitals. In fact, you may be at the point where your creditors are beginning to contact you about past due accounts.

The last thing you need so soon after your recovery is the stress of financial burdens. If you are considering filing for bankruptcy to gain some relief from your debt, you should know that medical issues are one of the most common factors that lead to bankruptcies in Texas and across the nation.

Facing the threat of losing your vehicle? You have options.

One of the most unfortunate consequences of having a significant amount of debt is the threat of repossession. If you are behind on your car payments, it is likely at some point you will receive a notice that your lender is moving to repossess your vehicle. This is a significant threat because if you do not have your personal vehicle, it could limit your ability to work and make your financial situation worse. 

It can be stressful and overwhelming to get phone calls and letters from creditors and lenders about past due balances. You may feel hopeless and unsure if there is anything you can do to limit the damage, keep your car and eventually secure a better financial future, but there are options available to you. It could be in the interests of Texas readers to understand more about the repossession process and how to deal with their debt. 

Your debt burden and managing holiday spending

As Texas readers know, the holidays are an exciting time of spending time with loved ones, going to parties and exchanging gifts. It can be an expensive time of year as well, and the financial impact can be significant, especially if you are already struggling with managing your payments. In fact, many Americans will go into debt this month. 

Spending during the holiday season will likely not be the reason your financial situation spirals out of your control. However, Christmas spending could be the proverbial straw that breaks the camel's back, leaving you with even higher credit card balances you cannot pay. If you are overwhelmed by what you owe and unable to catch up, it may be prudent to consider the benefits of bankruptcy.

A bankruptcy trustee will play a significant role in your case

Choosing to file for bankruptcy is a major step in getting your finances back on track. If you have already begun this process, you should feel proud for taking responsibility for your situation and doing your best to get out from under outstanding debt.

During your bankruptcy proceedings, you will likely have several people involved in your case. You may understand that your creditors, your attorney and a judge will play their roles, but you may wonder how other individuals will fit in. In particular, you may want to gain information on what a bankruptcy trustee does during the legal proceedings.

How badly will bankruptcy hurt my credit score?

Whatever the circumstances that led to your current financial crisis, chances are you are exploring every possible option for getting yourself out of it, including bankruptcy. You may know that a successful bankruptcy can provide a path to a debt-free future. However, you may also have heard that if you file for bankruptcy, your credit score will take a major hit.

It is wise advice to keep an eye on your credit score. After all, your credit rating is a critical part of obtaining a loan you may need to buy a car or to get a mortgage on a house. While you may be in no position to consider either of those purchases, you may hope to be in the future, and a negative credit rating could prevent you from reaching your goals. However, do you know where a credit score comes from?

Waiting too long and other bankruptcy mistakes

Substantial debt may play a major role in your worst nightmares. Unfortunately, it plays a role in your waking life, too. While you certainly hope that one day you will have the ability to get out from under your outstanding balances, you may feel that you do not have the financial stamina to make the payments necessary to relieve yourself of that debt.

Fortunately, other options for debt relief exist other than having to pay back creditors on your own. Bankruptcy is often a viable route for many Texas residents facing overwhelming debt issues. However, you may also be among the many people who feel that bankruptcy causes more harm than good.

Avoid financial pitfalls in divorce

When your friends and family learn that you are getting divorced, you'll likely start hearing all sorts of advice. Some, you might welcome, while other tips come unsolicited. When it comes to finances, you'll want to be quite selective as to whose advice you take. In fact, some well-meaning spokespeople can indirectly cause you serious financial problems if they steer you off-course.

The financial aspects of divorce can be tricky. If your spouse is willing to play fair, then you can simply be proactive and cooperate to achieve an amicable settlement. There are several things to keep in mind, however, to avoid common problems that can wind up leaving you broke after divorce. You'll want to build a strong support system from the get-go to help you overcome any obstacles that arise.

Seeking advice on how to reduce or eliminate credit card debt

While a person can experience periods of financial struggle under a variety of circumstances, credit card debt remains one of the leading causes of personal financial problems. If you are dealing with high amounts of credit card debt, the accompanying financial strain could be leaving you in search of some much-needed relief.

While many companies offer frequent promotions that can include periods free of interest, once these periods come to an end, the rates on your accounts may skyrocket. You may be wondering how you can rid yourself of credit card debt and protect your financial future, but the process can be intimidating.

Complicated bankruptcy situation? Read this

Perhaps you're among those in Texas whose finances took a big hit in recent years, maybe due to loss of income, medical emergency or divorce. If so, you're definitely not alone in your struggle. The good news is that many people have successfully overcome their financial problems by petitioning the court for bankruptcy. If you think this may be a viable option in your situation, there are several things you'll want to know before navigating the process.  

Rarely are financial problems permanent. How swiftly and fully you are able to resolve your current financial issues may hinge on the type of support resources you access. There are several types of bankruptcy and eligibility requirements for each that you must satisfy before applying. Knowing what kinds of obstacles can arise and who can provide crisis support can help secure debt relief and lay the groundwork for stronger financial future.  

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Steele Law Firm, PLLC
3629 Lovell Ave, Ste. 100
Fort Worth, TX 76107

Phone: 682-990-9372
Fax: 866-292-2348
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