People can be so judgmental. Take bankruptcy, for instance. Many people suspect that those who file for bankruptcy are profligate in their spending habits and are living too lavish a lifestyle. That may be true of some people, especially with the presence of credit cards and easy credit. Companies may push their products on people, constantly underselling the risk of taking on too much debt.
As bankruptcy attorneys in Louisville, we see many clients from all different occupations, and while living beyond one’s means is one way to wind up in a bankruptcy court, it is far from the only way. Life is full of unplanned events and even the most careful planning can be overwhelmed when too many bad things happen.
Divorce is a frequent trigger for bankruptcy. A wife, who had little experience handling money while married may find the sudden, constant stream of bills and new expenses on a limited income too much.
A husband with child support obligations may have underestimated how living on his own has sharply constrained his ready cash, and he may have been struggling to keep ahead of mounting credit card expenses.
A former spouse may have had more debt than you knew, and the property settlement was much smaller than you expected. Dealing with attempting to pay off a mortgage and refinance may have turned into a train wreck, taking your financial health with it.
A divorce can leave you with precarious finances; where a transmission on a car or truck failing or a leaking water heater can push you over the brink.
You may wish to consult with a bankruptcy attorney, in addition to your divorce attorney, if your finances are trending this direction in your divorce.
Source: LSJ.com, “Divorce, bankruptcy sometimes go hand-in-hand,” Gene Turnwald, September 27, 2013