One thing that all bankruptcy filings have in common is what the older generation would call “a heap of bad luck”.  Beyond just the regular collapse of the economy and the jobless so-called “recovery” that has put millions of Americans out of work, there are numerous other life factors that happen to consumers outside hard economic times.  Divorce, lay offs, …health problems-these are common factors that affect the best of people, regardless of their financial status, and certainly apart from their character!The unfortunate fact of the matter is that many Americans who find themselves in the middle of emotional and spiritual turmoil don’t even realize the benefits of how bankruptcy can change their current and future financial (and emotional) circumstances.

Take divorce as an example, while financial stress may have contributed to the couple’s downfall, divorce rates have been holding at about 50% for all couples– irrespective of economic times! Many times after a lengthy and exhausting divorce proceeding, one or both couples may end up with more debt than they can service on their own financially.  This is often the case in where women are used to being homemakers and are now forced to re-enter the workforce and find themselves under skilled, ill prepared, and competing for jobs in a market that is flooded with applicants that are more qualified, have more experience, and are willing to work for less.  Even in situations where a spouse is allocated an alimony settlement or monthly stipend that will cover that expenses, for the opposing spouse to withhold payment is a very common occurrence.  By the time the awarded spouse can get their day in court they may have already become so far behind that they cannot catch up.

A spouse that is due support that isn’t receiving it; or isn’t receiving enough to cover their new found monthly expenses may not have a better solution.  Bankruptcy attorneys urge people involved in divorce to not wait until they are in dire straights.  To meet with a bankruptcy lawyer in advance and learn what options are available is the best way to prepare themselves for the new financial pressures they will be meeting on their own. By filing for chapter 7 bankruptcy, it provides a clean slate from which to rebuild credit after the marriage, and eliminate the debt incurred during the divorce settlement.