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Divorcing with debt: is bankruptcy the only option? Atlanta, GA

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Divorcing with debt: is bankruptcy the only option?

upset couple turning back on each other

If you are already dealing with a significant debt load, you are probably well aware that it will only take some small issue or occurrence – a car accident or unexpected illness, for example – to push you over the edge into unmanageable debt. So what if the thing you are facing is a major life event that not only comes with its own emotional toll, but also has the potential to significantly worsen your financial situation?

Many of our Atlanta readers, when they are facing such a situation, probably tend to simply give up. They accept their financial circumstances, allow their debt to mount and their homes to go into foreclosure, and file for bankruptcy. For some people, that may be the right course of action. But it is important to recognize that, even when it doesn’t seem like the case, you are in control of your financial situation, and you have the power to make it better.

One such life event is divorce. Take, for example, the situation of a divorcing couple who has about $50,000 in unsecured (most likely credit card) debt. Both spouses are near or at retirement age and are unemployed. How can they split that debt without worrying that the other spouse will not pay their share and hurt their credit score in the process? Should they just file for Chapter 7 bankruptcy and eliminate the debt?

While other factors must be considered to determine whether bankruptcy is the right path for them, there are other options. For example, the spouses could make it a condition of the divorce that their debt be divided equally and transferred to individual accounts. That way, it is each spouse’s responsibility to make the payments, and the failure to do so will not harm their ex’s credit score.

The moral of this story is that you should consider all options before assuming that your financial situation is beyond repair. An experienced bankruptcy attorney can help you with that process.

Source: Fox Business, “Divorced and Unemployed: Time for Bankruptcy?” Steve Bucci, Oct. 18, 2012

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

Phone: (404) 685-8800

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Our Client Reviews

Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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